NIFTY REVERSES AFTER NEARLY ACHIEVING 10638 TARGET

NIFTY REVERSES AFTER NEARLY ACHIEVING 10638 TARGET

WORLD MARKETS

US indices tumbled 1.2% each yesterday after comments from new Federal Reserve Chair Jerome Powell sent rates higher.

In his testimony before Congress, Powell indicated that the central bank raising interest rates more than three times was a possibility as inflation moves "up to target."

U.S. Treasury yields rose on the back of these remarks, with the benchmark 10-year Treasury note adding 5 basis points to hit 2.915%. Dollar index surged nearly 1.5% to 90.36.

In economic data, U.S. home prices rose 6.3% compared to December of 2016, according to the S&P CoreLogic Case-Shiller national home prices index. U.S. consumer confidence topped 130.8 in February, a 17-year high.

Oil fell on stronger dollar with WTI down 1.3% or 90 cents to $63.01 and Brent down 87 cents to $66.63 a barrel.

European markets, except 0.1% higher Italy, ended with modest cuts

AT HOME

After opening with gains of about half a percent, benchmark indices reversed to end with cuts of three tenth of a percent. Sensex settled at 34346, down 99 points while Nifty lost 28 points to finish at 10554. BSE mid-cap and small-cap indices fell 0.5% and 0.4% respectively. BSE Realty index and Bankex tumbled 2% and 1.4% respectively, becoming top losers among sectoral indices while Telecom and Energy indices were the top gainers, up 1% and 0.5% respectively.

FIIs net sold stocks worth Rs 907 cr but net bought index futures and stock futures worth Rs 783 cr and 428 cr respectively. DIIs were net buyers to the tune of Rs 1047 cr.

Rupee depreciated 9 paise to end at 64.89/$.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.2%-1.3% with Shanghai leading the losses and SGX Nifty is suggesting about 60 points lower start for our market.

After Nifty crossed the immediate 10500 hurdle, we were working with major target of 10638, the top made on 8th February. Nifty yesterday touched a high of 10632, nearly achieving this target and reversed from there to end at 10554.

A gap-down opening today would take it closer to 10500, which is the immediate support as the gap, created by the gap-up opening on Monday, is placed there. Upon sustained trading below 10500, 40410, the 67% retracement level of the recent 10302-10632 upmove, would be the next support to eye.

We had advised booking some profit in long positions around 10638 hurdle. Remaining positions can be closed if the low made during first hour is taken out subsequently.

India's Q3 GDP data will be released today and is expected to show a growth of 6.82% and  up from 6.3% growth registered in Q2 and 7% in last year same quarter.

NIFTY SET TO ACHIEVE 10638 TARGET; TRAIL STOP-LOSS TO 10500

NIFTY SET TO ACHIEVE 10638 TARGET; TRAIL STOP-LOSS TO 10500

WORLD MARKETS

US indices soared 1.2%-1.6% respectively as U.S. Treasury yields slipped ahead of Federal Reserve Chair Jerome Powell's Tuesday testimony before Congress.

The benchmark 10-year note traded at 2.862%.

Oil prices edged up to touch a three-week high with WTI Brent up 19 cents at $67.50 a barrel.

European markets gained 0.4%-0.8%.

AT HOME

Benchmark indices climbed nine tenth of a percent to close at the highest level since 5th February. Sensex settled at 34445, up 303 points while Nifty added 91 points to finish at 10582. BSE mid-cap and small-cap indices gained 0.7% and 0.9% respectively. BSE Realty and Auto indices soared 3.3% and 2.2% respectively, becoming top gainers among sectoral indices while IT and Teck indices were the top losers, down 1.1% and 0.7% respectively.

FIIs net sold stocks worth Rs 1120 cr but net bought index futures and stock futures worth Rs 1036 cr and 344 cr respectively. DIIs were net buyers to the tune of Rs 1409 cr.

Rupee depreciated 7 paise to end at 64.80/$.

PNB has revealed additional unauthorised transaction amounting to Rs 1322 cr in relation to Nirav Modi fraud.

ACC Ltd and Ambuja Cements Ltd, both controlled by LafargeHolcim Ltd, said they were putting on hold their proposed merger, citing constraints related to transfer of mines under current laws.

OUTLOOK

Today morning, except a 0.4% lower Shanghai, other Asian markets are trading with gains of 0.3%-1.2% with Nikkei on the top and SGX Nifty is suggesting about 50 points higher start for our market. In yesterday's report we had given target of 10590, where a trendline adjoining tops made in February as Nifty was set to open above the 10500 hurdle. We had also said that above 10590, 10638, the top made on 8th February, would be the next target to eye.

The benchmark touched a high of 10592 before closing at 10582 and is set to open around 10630, which would nearly achieve 10638 target and vindicate our view.

Once Nifty sustains above 10638, 10700, where 34-DMA is placed, would be the next upside target as well as resistance to eye.

Meanwhile, 10520-10500, the gap created by yesterday's gap up opening, would now act as the immediate support, with the stop-loss of which, existing longs should be held on to.

New Fed Chair Jerome Powell is set to address Congress today, when he is expected to address monetary policy in his first semiannual economic testimony. Markets would watch out for clues on the central bank's rate hike path and Powell's views on inflation.

GO LONG WITH THE STOP-LOSS OF 10400 FOR 10590, 10638

GO LONG WITH THE STOP-LOSS OF 10400 FOR 10590, 10638

WORLD MARKETS

US indices soared 1.2%-1.7% on Friday as interest rates slipped further from a four-year high to trade near 2.875%.

US crude rose 1.2% to $63.55, a two-week high.

The Federal Reserve's monetary policy report released on Friday indicated "gradual adjustments" in policy ahead, given how policymakers saw the U.S. economy past full employment

In Europe, FTSE fell 0.1% but DAX and CAC gained 0.2% each while Italy surged 0.9%.

For the week, US indices gained 0.4%-1.4% with Nasdaq on the top. European markets gained 0.1%-0.7%. Asian markets rose 0.5%-2.8% with Shanghai on the top.

AT HOME

Benchmark indices soared a percent to end the week on a positive note. Sensex gained 322 points to settle at 34142 while Nifty finished at 10491, up 108 points. BSE mid-cap and small-cap indices climbed 1.5% each. All the BSE sectoral indices ended in green with Metal and Basic Material indices leading the tally, up 3.2% and 2.4% respectively.

FIIs net sold stocks and index futures worth Rs 486 cr and 694 cr respectively but net bought stock futures worth Rs 1292 cr. DIIs were net buyers to the tune of Rs 1514 cr.

Rupee appreciated 32 paise to end at 64.73/$.

For the week, Sensex and Nifty, both gained 0.4% each.

Sun Pharma soared 6% after the company said it had received 3 USFDA observations for Halol Unit and that it will submit response within 15 days.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.5%-1.1% with Nikkei on the top and SGX Nifty is suggesting about 40 points higher start for our market.

In Friday's report, we had reiterated the view that 10500 is the immediate hurdle, a crossover of which will generate a "Buy" on the hourly chart and would pave the way for further upmove. The benchmark, on Friday, surged 108 points to settle at 10491 and is set to open abvoe 10500 today.

A trendline adjoining tops made on 8th and 15th February, presents a resistance around 10590 and that would be the immediate target on the way up. Above 10590, 10638, the top made on 8th February, would be the next important resistance to eye.

Meanwhile, immediate support on the hourly chart is placed around 10400, with the stop-loss of which, trading longs should be held on to.

NIFTY ENDS FEBRUARY SERIES WITH 6.2% CUT; 10276-10500 CONTINUES TO BE IMMEDIATE RANGE

NIFTY ENDS FEBRUARY SERIES WITH 6.2% CUT; 10276-10500 CONTINUES TO BE IMMEDIATE RANGE

WORLD MARKETS

Dow and S & P 500 gained 0.7% and 0.1% respectively while Nasdaq fell 0.1%. The close was off the day high as concerns over higher interest rates lingered.

The 10-year yield traded off its four-year high at 2.921 percent.

Oil prices rose following a surprise reported decline in U.S. crude stocks. WTI crude rose 1.8% to $62.77 and Brent rose 1.5% to $66.39 a barrel.

Minutes from the European Central Bank's January meeting reflected that it could take another look at its policy "early this year

In Europe CAC gained 0.1% while FTSE, DAX and Italy fell 0.4%, 0.1% and 0.8% respectively.

AT HOME

Benchmark indices ended marginally in the red after the usual expiry day volatility. Sensex lost 25 points to settle at 33819 and Nifty finished at 10382, down 15 points. BSE mid-cap and small-cap indices fell 0.5% and 0.4% respectively. BSE Oil & Gas and Power indices tumbled 1.5% and 1.1% respectively to become top losers among sectoral indices while Realty and IT indices were the top gainers, up 0.7% and 0.6% respectively.

FIIs net sold stocks and index futures worth Rs 2335 cr and 1746 cr respectively but net bought stock futures worth Rs 1687 cr. DIIs were net buyers to the tune of Rs 1059 cr.

Rupee depreciated 28 paise to end at 65.05/$.

For the February derivative series, Nifty lost 6.2%.

OUTLOOK

Today morning, Shanghai is flat while Nikkei and Hang Seng are up 0.2% and 0.8% respectively. SGX Nifty is suggesting a flattish start for our market.

At the risk of repeating, Nifty is in a consolidation mode after touching a bottom of 10276 on 6th February. 10276-10638, the lower and upper boundaries of this consolidation range, are important support and resistance levels to eye. A decisive breach of 10276 can lead to next leg of correction and 200 DMA, placed around 10090, would be the next major support if that happens.

10500 is the immediate hurdle before 10638.

10276-10500 CONTINUES TO BE IMMEDIATE RANGE

10276-10500 CONTINUES TO BE IMMEDIATE RANGE

WORLD MARKETS

US indices reversed intraday gains to end with cuts of 0.2%-0.7% after interest rates reached fresh multiyear highs following the release of the latest Federal Reserve minutes.

The minutes showed the Fed sees increased economic growth and an uptick in inflation as justification to continue to raise interest rates gradually.

The benchmark 10-year note yield initially fell from session highs after the release, but recovered to reach a fresh four-year high above 2.95%.

IHS Markit flash US composite PMI hit 55.9, its highest level in more than two years. Existing home sales fell for a second straight month in January.

In Europe, FTSE and CAC gained 0.5% and 0.2% respectively whil DAX and Italy lost 0.1% and 0.1% respectively. Manufacturing and services PMIs out in the euro zone showed growth in the region slowed down in February.

AT HOME

Benchmark indices ended with gains of about four tenth of a percent, breaking three-day losing streak. Sensex added 141 points to settle at 33844 while Nifty finished 40 points higher at 10400. BSE mid-cap index ended flat while small-cap index lost 0.2%. BSE IT and Teck indices soared 2.2% and 1.8% respectively to become top gainers among sectoral indices while Metal and Healthcare indices were the top losers, down 1.3% and 1.2% respectively.

FIIs net sold stocks worth Rs 1214 cr but net bought index futures and stock futures worth Rs 627 cr and 1240 cr respectively. DIIs were net buyers to the tune of Rs 1375 cr.

Rupee appreciated 3 paise to end at 64.75/$.

OUTLOOK

Today, Shanghai has opened more than one percent higher after Lunar New Year holidays. Nikkei and Hang Seng are trading with cuts of more than a percent and SGX Nifty is suggesting about 50 points lower start for our market.

Readers would recall that after Nifty broke immediate support of 10398, we have been working with the possibility of retest of 10276 bottom made on 6th February. Nifty, after touching a low of 10302 on Monday, has recovered to 10397 as on yesterday but is set to open below 10350 today.

10276 continues to be crucial support to eye, a decisive breach of which can lead to next leg of correction and 200 DMA, placed around 10085, would be the next major support if that happens. 10500 continues to be immediate hurdle on the way up, a crossover of which is required for a fresh upmove.

Grasim, Titan and Bajaj Finserve will replace Aurobindo Pharma, Ambuja Cement and Bosch from April 2.

10276 CONTINUES TO BE CRUCIAL SUPPORT; 10500 IMMEDIATE HURDLE

10276 CONTINUES TO BE CRUCIAL SUPPORT; 10500 IMMEDIATE HURDLE

WORLD MARKETS

Dow and S & P 500 tumbled 1% and 0.6% respectively, breaking six-day winning streak, pressured by a steep decline in Walmart shares and a rise in interest rate. Nasdaq fell 0.1%.

Walmart nosedived 10.2% in its biggest decline since 1988, after reporting lower-than-expected earnings.

The benchmark 10-year U.S. note yield rose to 2.886% while two-year yield traded around a nine-year high.

US crude rose 22 cents to $61.90 but Brent fell 45 cents to $65.22 a barrel.

In Europe, except a flat FTSE, other markets gained 0.5%-0.9%.

AT HOME

Benchmark indices ended lower by a fifth of a percent. Sensex lost 71 points to settle at 33704 while Nifty finished at 10360, down 18 points. BSE mid-cap and small-cap indices fell 0.1% and 0.2% respectively. BSE Consumer Durables and Metal indices gained the most among the sectoral indices, putting on 1.7% and 1.2% respectively while Realty index and Bankex were the top losers, down by 0.6% each.

FIIs net sold stocks and index futures worth Rs 850 cr and 1832 cr respectively but net bought stock futures worth Rs 1012 cr. DIIs were net buyers to the tune of Rs 1437 cr.

Rupee depreciated 58 paise to end at 64.79/$.

OUTLOOK

Today morning, Asian markets are trading flat to modestly higher and SGX Nifty is suggesting about 30 points higher start for our market.

As mentioned in yesterday's report, 10276, the bottom made on 6th February, continues to be crucial support to eye, a decisive breach of which can lead to next leg of correction and 200 DMA, placed around 10080, would be the next major support if that happens.

10500 continues to be immediate hurdle on the hourly chart, a crossover of which is required for a fresh upmove.

NIFTY MOVES CLOSER TO 10276 SUPPORT AFTER BREACHING 10398; 10500 IS IMMEDIATE HURDLE

NIFTY MOVES CLOSER TO 10276 SUPPORT AFTER BREACHING 10398; 10500 IS IMMEDIATE HURDLE

WORLD MARKETS

US markets were shut yesterday for President's Day.

European markets fell 0.5%-1% with Italy leading the losses.

Oil prices rose to touch their highest levels in two weeks with Brent up 1.2% at $65.61 and WTI up 1.3% at $62.50 a barrel.

AT HOME

Benchmark indices ended lower by seven tenth of a percent to end at the lowest level in more than two months. Sensex fell 236 points to settle at 33775 while Nifty finished at 10378, down 74 points. BSE mid-cap and small-cap indices lost 1% each. All the BSE sectoral indices ended in red with Capital Goods and Metal indices leading the tally, down 1.6% each.

FIIs net sold stocks and index futures worth Rs 896 cr and 1153 cr respectively but net bought stock futures worth Rs 408 cr. DIIs were net buyers to the tune of Rs 587 cr.

OUTLOOK

Today morning, Nikkei and Hang Seng are down 1% and 0.6% respectively and SGX Nifty is suggesting about 50 points lower start for our market.

In yesterday's report we had reiterated the view that 10398 is the immediate support below which Nifty can slip to retest 10276 bottom made on 6th February.

Yesterday, Nifty broke the 10398 support in the first hour itself and plunged all the way to 10302 before closing at 10378 and is set to open around 10325 today.

10276 continues to be crucial support to eye a decisive breach of which can lead to next leg of correction. 200 DMA, placed around 10080, would be the next major support if that happens.

Immediate resistance on the hourly chart is placed around 10500, upon crossover of which 10638, the top made on 8th February, would be the next hurdle to eye.

NIFTY EXTENDS CONSOLIDATION; 10638-10398 ARE THE IMMEDIATE LEVELS TO EYE

NIFTY EXTENDS CONSOLIDATION; 10638-10398 ARE THE IMMEDIATE LEVELS TO EYE

WORLD MARKETS

Dow and S & P 500 ended marginally in the green while Nasdaq lost 0.2% on Friday, off their highs after news broke that Robert Mueller indicted 13 Russian nationals for allegedly interfering with the 2016 U.S. presidential election.

In economic news, housing starts rose 9.7% in January, surpassing market expectations. Import prices gained 1%, while export prices advanced 0.8%. Consumer sentiment rose more than expected, according to a preliminary reading from the University of Michigan.

The dollar index slipped to 88.36 — its lowest level since late 2014 — before recovering to 88.89.

European markets gained 0.8%-1.3%.

For the week, US indices soared 4.2%-5.3% with the Nasdaq, Dow and S & P 500 posting their best weekly performances since 2011, 2016 and 2013, respectively. European markets gained 2.8%-4%. In Asia, while Hang Seng, Shanghai and Nikkei gained 5.4%, 2.2% and 1.6% respectively, India ended flat.

AT HOME

After gaining more than half a percent at the open, benchmark indices  nosedived nearly a percent and half from the top of the day to end with cuts of about eight tenth of a percent. Sensex lost 286 points to settle at 34010 while Nifty finished 93 points lower at 10452. BSE mid-cap and small-cap indices tumbled 1.2% each. Except 0.1% higher IT index, all the BSE sectoral indices ended in red with Auto and Metal indices leading the tally, down 1.6% each.

FIIs net sold stocks, index futures and stock futures worth Rs 1066 cr, 66 cr and 175 cr respectively. DIIs were net buyers to the tune of Rs 1128 cr.

Rupee depreciated 30 paise to end at 64.21/$.

For the week, Sensex and Nifty ended flat.

OUTLOOK

Today Shanghai and Hang Seng continue to be shut for Lunar New Year. Nikkei is up nearly a percent and SGX Nifty is suggesting about 10 points higher start for our market.

After touching a low of 10276 on 6th February, Nifty has been in a consolidation mode and has made top and bottom of 10638 and 10398 respectively in subsequent trading which are now the immediate resistance and support levels to eye. Above 10638, 10725, the 50% retracement level of the 11171-10276 fall, would be the next upside target to eye. Upon breach of 10398, 10276 would be the next crucial support.

The U.S. market will be closed today for Presidents Day.

10638-10398 CONTINUES TO BE IMMEDIATE RANGE

10638-10398 CONTINUES TO BE IMMEDIATE RANGE

WORLD MARKETS

Dow and S & P 500 rose 1.2% each while Nasdaq climbed 1.6% to extend winning streak to fifth straight day, despite interest rates reaching multi-year highs.

Jobless claims increased by 7,000 to 230,000, rebounding from a near 45-year low. The producer price index rose 0.4% in January, in line with expectations.

WTI crude rose 1.2% to $61.34 on the back of weak dollar and comments from Saudi Arabia that major oil producers would prefer tighter markets than to end supply cuts too early

European markets gained upto 1.1% with France on the top.

AT HOME

After gaining more than a percent in the morning, benchmark indices gave away more than half of the gains in late noon sell-off to end higher by just four tenth of a percent. Sensex settled 141 points higher at 34297 while Nifty added 44 points to finish at 10545. BSE mid-cap and small-cap indices tumbled 0.5% and 1.3% respectively. BSE Telecom and Industrial indices fell 1.2% and 0.9% respectively to become top losers among sectoral indices while Oil & Gas and Metal indices were the top gainers, up 1% and 0.7% respectively.

FIIs net sold stocks worth Rs 240 cr but net bought index futures and stock futures worth Rs 537 cr and 548 cr respectively. DIIs were net buyers to the tune of Rs 50 cr.

Rupee appreciated 18 paise to end at 63.91/$.

Trade deficit widened to a 56-month high at USD 16.86 in January as exports rose 9% to USD 24.38 bn and imports surged 26.1% to USD 40.68 bn.

India's wholesale inflation, as measured by WPI, eased to a 6-month low of 2.84% in January from 3.58% in December.

OUTLOOK

Markets in China, Hong Kong, Taiwan, South Korea, Malaysia and Vietnam are shut today. Nikkei is up nearly a percent and SGX Nifty is suggesting about 40 points higher start for our market.

Nifty has been in a consolidation mode after hitting a low of 10276 last week. As mentioned yesterday, 10638-10398, the top and bottom made on last Thursday and Friday respectively, is the immediate range to work with. A crossover of 10638 can take Nifty to 10725, which is the 50% retracement level of the recent 11171-10276 fall. On the way down, below 10398, 10276 would be the crucial support to eye.

NIFTY EXTENDS CONSOLIDATION WITHIN 10638-10398 RANGE

NIFTY EXTENDS CONSOLIDATION WITHIN 10638-10398 RANGE

WORLD MARKETS

US indices gained 1%-1.9%, extending the winning streak to fourth straight day.

US consumer price index rose 0.5% last month, topping the 0.3% forecast. Retail sales decreased 0.3% last month, compared to projection of 0.2% increase.

The yield on the 10-year U.S. Treasury note jumped to 2.92%, its highest levels in four years following the inflation data release.

US crude rallied 2.4% to $60.60 and Brent climbed 2.6% to $64.36 a barrel on the back of weaker greenback and a less-than-expected rise in U.S. crude inventories.

European markets gained 0.6%-1.8% with Italy leading the gains. Eurozone GDP increased 0.6% from the previous three months.

AT HOME

After gaining about half a percent in the opening trade, benchmark indices ended lower by four tenth of a percent on the back of last hour sell-off. Sensex settled 144 points lower at 34155 while Nifty lost 39 points to finish at 10500. BSE mid-cap and small-cap indices however managed to gain 0.2% each. BSE Bankex nosedived 1.6%, becoming top loser among the sectoral indices, followed by 0.7% Power and Healthcare indices. Energy and Telecom indices were the top gainers, up 0.8% and 0.7% respectively.

FIIs net sold stocks worth Rs 729 cr but net bought index futures and stock futures worth Rs 1039 cr and 98 cr respectively. DIIs were net sellers to the tune of Rs 152 cr.

Rupee appreciated 23 paise to end at 64.09/$.

PSU Banks, led by PNB, collapsed after PNB detected some fraudulent transactions worth Rs 11,300 crore in its Mumbai branch.

Sun Pharma reported 75% drop in December quarter net profit at Rs 365 cr hit by plunging US sales and one-time deferred tax adjustment of Rs 513 cr. Revenue fell 16% to Rs 6653 cr. EBIDTA margin stood at 21.2%.

OUTLOOK

Markets in China, South Korea, Taiwan and Vietnam are closed today for the Lunar New Year holiday. Hang Seng and Nikkei are up a percent and half. SGX Nifty is suggesting about 80 points higher start for our market.

In yesterday's report we had mentioned that Nifty is in a consolidation mode after making a bottom of 10276 on 6th February and that 10638-10398 is the immediate range to work with. Nifty, after making a high of 10590 in the opening trade, slipped to end at 10500, extending the consolidation within the above mentioned range.

A higher opening today would take the benchmark close to 10600 mark. 10638, the top made last Thursday, continues to be immediate hurdle above which 10725, the 50% retracement level of the recent 11171-10276 fall, would be the next target to eye. 10398, the bottom made on Friday, continues to be immediate support, below which, 10276 would be the crucial support to eye.

10638-10398 IS THE IMMEDIATE RANGE

10638-10398 IS THE IMMEDIATE RANGE

WORLD MARKETS

US indices gained 0.2%-0.4%, extending the winning streak to third straight day.

Treasury yields slipped from Monday's four-year highs to trade at 2.831% ahead of the release of heavily anticipated U.S. inflation data on Wednesday.

Dollar index fell about half a percent to 89.73.

European markets fell 0.1%-1.4% with Italy leading the losses.

US oil fell 10 cents to settle at $59.19.

AT HOME

Benchmark indices ended with gains of about eight tenth of a percent after a choppy trade. Sensex added 295 points to settle at 34300 while Nifty finished at 10540, up 85 points. BSE mid-cap and small-cap indices surged 1.3% and 1.6% respectively, extending their outperformance. Except 0.4% and 0.3% lower IT and Teck indices respectively, all the BSE sectoral indices ended in green with Power and Realty indices leading the tally, up 1.9% and 1.7% respectively.

FIIs net sold stocks and index futures worth Rs 814 cr and 1481 cr respectively but net bought stock futures worth Rs 38 cr. DIIs were net buyers to the tune of Rs 1343 cr.

Rupee appreciated 8 paise to end at 64.32/$.

CPI, a measure of retail inflation, fell to 5.07% in January, from 5.21% in December. IIP, a measure of factory output, stood at 7.1% in December as compared to 8.8% in November.

The Reserve Bank of India has released a new overarching framework for bad loan resolution, to be used across the Indian banking sector. The new rules put an end to a series of stressed asset schemes which had been introduced over the past few years. Instead, a strict 180-day timeline has been prescribed over which banks must agree on a resolution plan. And if they fail to do so, large stressed accounts must be immediately referred for resolution under the Insolvency and Bankruptcy Code (IBC).

OUTLOOK

Today morning, except a marginally lower Nikkei, other Asian markets are trading with gains of 0.3%-1%. SGX Nifty is trading around 10550, suggesting a marginally higher start as compared to Monday's close of Nifty futures.

Last week, Nifty, after making a bottom of 10276 on Tuesday, rebounded to touch a high of 10638 on Thursday and has been in a consolidation mode for last two days.

10638 is the immediate hurdle, above which 10725, the 50% retracement level of the recent 11171-10276 fall, would be the next target to eye. On the way down, 10398, the bottom made on Friday, is the immediate support below which 10276 would be the crucial support to eye.