TRAIL STOP-LOSS TO 10550 FOR TARGETS OF 10700, 10950

TRAIL STOP-LOSS TO 10550 FOR TARGETS OF 10700, 10950

WORLD MARKETS                             

US indices fell 0.1% each over the possibility of China halting its Treasury bond purchases and the U.S. pulling out of NAFTA.

Media reports suggested that officials in Beijing have recommended the Chinese government lowers — or even stops — its buying of U.S. sovereign debt.

Another report, citing two Canadian government sources, said that Canada is increasingly convinced that Trump will pull the U.S. out of the trade agreement.

Gold rose 0.4% to $1,318.40 per ounce, while the U.S. dollar index dropped 0.2%.

In Europe, FTSE and Italy gained 0.2% and 0.7% respectively while DAX and CAC fell 0.8% and 0.4% respectively.

AT HOME

It was yet another day of consolidation as benchmark indices ended marginally in the red after trading in a narrow range. Sensex settled at 34433, down 10 points while Nifty lost 5 points to finish at 10632. BSE mid-cap and small-cap indices fell 0.3% and 0.04% respectively. BSE IT and Teck indices climbed 1.8% and 1.5% respectively, becoming top gainers among sectoral indices while Auto and Consumer Durable indices were the top losers, down 0.7% and 0.6% respectively.

The Cabinet approved 100% FDI under automatic route for single brand retail trading and construction development. Also, foreign airlines can now invest up to 49 percent via government approved route in Air India.

FIIs net sold stocks and index futures worth Rs 572 cr and 242 cr respectively but net bought stock futures worth Rs 318 cr. DIIs were net buyers to the tune of Rs 600 cr.

Rupee appreciated 13 paise to end at 63.59/$.

OUTLOOK

Today morning, Asian markets are trading with cuts of upto 0.4% and SGX Nifty is suggesting a flattish start for our market.

We have been working with targets of 10700 followed by 10950 after Nifty crossed 10490 top made in early November.

Nifty, after touching a high of 10659, has been in a consolidation mode over last two days and yesterday ended 5 points lower at 10632.

10700 continues to be immediate target. Immediate support on the hourly chart has moved up to 10550, with the stop-loss of which, trading longs should be held on to.

TCS and Indusind Bank will report their quarterly earnings today.