TRAIL STOP-LOSS TO 10950; 11150 NEXT

TRAIL STOP-LOSS TO 10950; 11150 NEXT

WORLD MARKETS

While Dow gained 0.2%, S & P 500 and Nasdaq fell 0.1% and 0.6% respectively on trade war concerns and the broad decline in the U.S. currency. Apple led the technology stocks lower.

Worries about further U.S. protectionist policies accentuated after Commerce Secretary Wilbur Ross suggested the U.S. was ready to enter a trade war.

US dollar index tumbled 0.8% to 89.24, fresh 2014 lows following U.S. Treasury Secretary Steven Mnuchin's comments that a weaker greenback was good for the country.

Commodities soared on weaker dollar. WTI crude rose 1.8% to $65.61 a barrel, hitting their highest level since December 2014 after US crude stockpiles fell for the tenth straight week.  Brent crude rose 59 cents, or 0.8%, to $70.55. Gold climbed $19.60 to settle at $1,356.30 per ounce.

European markets tumbled 0.7%-1.1%.

AT HOME

It was a day of consolidation as benchmark indices ended little changed after trading in a narrow range through the session. Sensex added 22 points to settle at 36161 while Nifty finished at 11086, up 2 points. BSE mid-cap and small-cap indices however fell 0.6% and 0.9% respectively. BSE Telecom and Consumer Durable indices tumbled 3.5% and 2.1% respectively, becoming top losers among sectoral indices while IT and FMCG indices were the top gainers, up 1.5% and 0.5% respectively.

FIIs net bought stocks and index futures worth Rs 776 cr and 1258 cr respectively but net sold stock futures worth Rs 647 cr. DIIs were net sellers to the tune of Rs 194 cr.

Rupee appreciated 9 paise to end at 63.69/$.

Finance minister Arun Jaitley yesterday unveiled details of the recapitalisation package for public sector banks (PSBs) that was announced in October.  The capital infusion plan for 2017-18 includes Rs 80,000 crore through recap bonds and the remaining Rs 8,139 crore through budgetary allocation.

OUTLOOK

Today morning, Hang Seng is flat while Shanghai and Nikkei are down 0.2% and 0.5% respectively. SGX Nifty is suggesting about 25 points higher start for our market.

Holding on to long positions with a trailing stop-loss continues to be the advice. 11150 is the next upside target to eye. Immediate support, after today's higher start, would move up to 10950, which should serve as the fresh stop-loss for long positions.

Maruti, Dr Reddy and UPL will report their quarterly earnings today.

Indian markets will remain shut tomorrow on account of Republic Day.