10275 CONTINUES TO BE IMMEDIATE HURDLE; 10140 IMMEDIATE SUPPORT

10275 CONTINUES TO BE IMMEDIATE HURDLE; 10140 IMMEDIATE SUPPORT

WORLD MARKETS

Dow surged 1.8% and S & P 500 and Nasdaq climbed 1.6% each, recouping more than they had lost in the previous session.

Trump, in a media interaction, said that he thinks the U.S. will make a "great" trade deal with China.

The Conference Board's consumer confidence index rose to a print of 137.9 this month, its highest level since September 2000.

Coca-Cola reported third-quarter earnings that topped estimates. General Electric fell more than 10% to dip below $10 per share for the first time since 2009 after the company disclosed that the Securities and Exchange Commission is expanding its probe into the company's accounting practices.

Dollar index rose about a third of a percent to 97, hitting highest level in a year and half.

US oil fell 1.3% to 10-week low of $66.18 while Brent fell 2.1% to $75.69 a barrel after International Energy Agency chief said fuel demand could take a hit and crude output from Russia, U.S. and Saudi Arabia reaches 33 million barrels per day (bpd), or a third off global demand.

European markets, except 0.1% higher FTSE, fell 0.2%-0.4%. Year-on-year euro zone growth slowed to 1.7% from 2.2% in the second quarter.

AT HOME

After rising about a third of a percent in the first hour, benchmark indices saw a sustained downward move through the session to end lower by half a percent. Sensex settled at 33891, down 176 points while Nifty lost 52 points to finish at 10198. BSE mid-cap and small-cap indices however gained 0.9% each. BSE Energy and Oil & Gas indices tumbled 2.7% and 1.7% respectively, becoming top losers among the sectoral indices while IT and Teck indices gained 1.7% each, becoming top gainers.

FIIs net sold stocks worth Rs 1592 cr but net bought index futures and stock futures worth Rs 201 cr and 134 cr respectively. DIIs were net buyers to the tune of Rs 1363 cr.

Rupee depreciated 24 paise to end at 73.68/$.

Tech Mahindra's revenue missed estimates but margin was a beat. Dollar revenue fell 0.5% q-o-q to $1218 mn while in constant currency terms, revenue grew 0.4%. Rupee  revenue rose 4.3% to Rs 8630 cr, EBIT was up 23% at Rs 1324 cr while margin rose 230 bps to 15.3%.

BoB reported in-line with expected NII growth while net profit missed estimate by a bit. However, slippages hit a seven-quarter low and asset quality improved. NII rose 21% to Rs 4492 cr and Net profit was up 20% at Rs 425 cr. Fresh slippages at Rs 2281 cr, were at a 7 quarter low. Gross NPA ratio fell 68 bps q-o-q to 11.78% and net NPA ratio improved 54 bps to 4.86%.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.3%-1.4% and SGX Nifty is suggesting about 70 points higher start for our market.

In yesterday's report we had said that "10275, the top made yesterday, also coincides with the 38.2% retracement level of the recent 10710-1004 fall and hence is the immediate hurdle to eye". We had also said that 10140 is the immediate support on the hourly chart.

Nifty, after touching a high of 10285 in the first hour, slipped to end at 10198 but is set to open around 10270 today.

10275 continues to be immediate hurdle, a sustained trading above which is required for a fresh upmove. If that happens, 10408-10440 would be the next resistance zone where 10408 is the top made last week and 10440 is the 61.8% retracement level of the 10710-10004 fall.

10140 continues to be immediate support below which 1004, the low made last week, would be the crucial support to eye.

Tata Motors, L & T and Lupin will report their quarterly earnings today.

10275 IS THE IMMEDIATE HURDLE; 10004 IMMEDIATE SUPPORT

10275 IS THE IMMEDIATE HURDLE; 10004 IMMEDIATE SUPPORT

WORLD MARKETS

After rising nearly a percent and half in the initial trade, Dow and S & P 500 nosedived nearly two and a half percent from the top to end lower by 1% and 0.7% respectively. Nasdaq tumbled more than three and a half percent from the top to end lower by 1.6%.

Media report suggested that the U.S. is planning on slapping tariffs on more Chinese products if upcoming talks between President Donald Trump and Chinese President Xi Jinping falter.

Amazon and Netflix extended previous day's fall by falling 6.3% and 5% respectively. These losses offset strong gains from bank shares.

Stocks had opened higher after IBM agreed to buy Red Hat, an open-source software distributor, for around $34 billion.

Dollar index rose about 0.4% to 96.70.

US oil fell 55 cents to $67.04 while Brent fell 8 cents to $77.54 a barrel.

European markets gained 0.4%-1.9%, reacting to news that China will announce a 50 percent cut in car purchase taxes and German Chancellor Angela Merkel plans to step down as party chairman.

AT HOME

After a marginally positive start, benchmark indices saw a sustained northward move through the session to end with mammoth gains of 2.2%. Sensex soared 718 points to settle at 34067 while Nifty finished at 10250, up 220 points. BSE mid-cap and small-cap indices gained 2.8% and 2.1% respectively. All the BSE sectoral indices ended in green with Healthcare and Realty indices leading the tally, up 4.2% and 3.8% respectively.

FIIs net sold stocks worth Rs 2231 cr but net bought index futures and stock futures worth Rs 279 cr and 2078 cr respectively. DIIs were net buyers to the tune of Rs 2527 cr.

Rupee appreciated 2 paise to end at 73.44/$.

BPCL was a miss on all the counts including net profit, margins and GRMs. Margins contracted 200 bps and GRMs stood at $5.57/bbl as against the expectation of $6.1/bbl.

Tata Power and Adani surged by 12.4% and 18.7% in today’s trade. The stocks surged as the Supreme Court directed Central Electricity Regulatory Commission (CERC) to take a call within eight weeks on whether or not to increase power tariffs for these companies' ultra mega power plant (UMPP) at Mundra.

These companies had entered into power purchasing agreement (PPA) with discoms to supply power at a fixed tariff. However, these companies had derived at such fixed tariffs by taking into account the cheaper coal which they sourced from Indonesia. However, Indonesia started levying extra taxes on supplying these coal and all the calculations to derive at the fixed tariff to supply power to discoms went for a toss. These plants are currently making hefty losses.  On account of this, Supreme Court has asked CERC to intervene and provide some relief to these plants. Provided CERC do provide some relief to these companies by increasing tariffs, then it will be very beneficial for these companies. Further, it will help these plants to not turn as non-performing asset and will be beneficial for the banks too who have exposure to these companies.

OUTLOOK

Today morning, Nikkei is up about a percent, Shanghai is flat while Hang Seng is off about half a percent. SGX Nifty is suggesting about 40 points lower start for our market.

In yesterday's report we had said that 10210 is the immediate hurdle on the hourly chart above which 10408, the top made last week, would be the next resistance to eye.

Nifty soared to touch a high of 10275 before closing at 10251 and is set to open around 10200 today.

10275, the top made yesterday, also coincides with the 38.2% retracement level of the recent 10710-1004 fall and hence is the immediate hurdle to eye. 10408-10440 would be the next resistance zone above 10275 where 10408 is the top made last week and 10440 is the 61.8% retracement level of the 10710-10004 fall.

10140 is the immediate support on the hourly chart below which 1004, the low made last week, would be the crucial support to eye.

Tech Mahindra and BoB will report their quarterly earnings today.

STAY SHORT WITH THE STOP-LOSS OF 10210

STAY SHORT WITH THE STOP-LOSS OF 10210

WORLD MARKETS

US indices plunged 1.2%-2.1% on Friday as disappointing earnings from key tech companies overshadowed strong economic data.

Amazon and Alphabet fell after earnings for both companies topped analyst estimates, but revenues fell short.

U.S. economy grew at a 3.5% rate in the third quarter, above a 3.4% estimate. Personal consumption expenditures (PCE) index, a key measure of inflation, increased by 1.6% last quarter. Consumer spending, which accounts for more than two-thirds of economic activity, surged by 4% in the third quarter, the fastest pace since the fourth quarter of 2014.

US oil rose 26 cents to $67.58 and Brent was up 72 cents at $77.61 a barrel.

European markets fell 0.6%-1.3%.

For the week, US indices fell 3%-3.9%. Main European markets fell ftse 1.6%-3.1%. In Asia, Nikkei nosedived 6%, Hang Seng fell 3.3% but Shanghai was up 2%.

US oil fell 2.2% and Brent fell nearly 3%.

AT HOME

Sensex and Nifty tumbled a percent on the last day of the week to close at the lowest level in 7 months. Sensex settled at 33349, down 340 points while Nifty lost 95 points to finish at 10030. Broader market however outperformed with mid-cap and small-cap index down just 0.1% and 0.04% respectively. BSE IT index and Bankex tumbled 2% each, becoming top losers among the sectoral indices while Telecom and Energy indices were the top gainers, up 0.6% each.

For the week, Sensex and Nifty fell 2.8% and 2.6% respectively, extending the losing streak to second consecutive week.

FIIs net sold stocks and index futures worth Rs 1357 cr and 147 cr respectively but net bought stock futures worth Rs  541 cr. DIIs were net buyers to the tune of Rs 1876 cr.

Rupee depreciated 18 paise to end at 73.45/$.

ICICI reported better-than-expected NII and Net profit along with improvement in asset quality. NII grew 12.4% y-o-y to Rs 6418 cr while net profit fell 56% to Rs 909 cr. Gross NPA ratio improved 27 bps q-o-q to 8.54% and net NPA ratio fell 54 bps to 3.65%.

ITC reported largely in-line with estimates earnings. Revenue rose 7.3% y-o-y to Rs 11273 cr, EBITDA was up 11.8% to Rs 4206 cr, margins rose 150 bps to 38% and net profit was up 11.9% to Rs 2955 cr. Cigarette revenue rose 10.4% to Rs 5026 cr while EBIT rose 8.7% to Rs 3579 cr.

Dr Reddy's was a big operational and bottomline beat. While revenue rose 7% to Rs 3798 cr, EBIDTA climbed 25.5% to Rs 864 cr, margins were up 340 bps at 22.8% and net profit soared 77% to Rs 504 cr.

OUTLOOK

Today morning, Nikkei and Hang Seng are up 0.8% and 0.6% respectively but Shanghai is off half a percent. SGX Nifty is suggesting about 50 points higher start for our market.

After Nifty breached 10138 support, we have been working with next downside target of 9951, the bottom made in March. Nifty, on Friday touched a low of 10004 before closing at 10030 and is set to open around 10100 today.

9951 continues to be immediate support below which 9687, the bottom made in March, would be the next downside target.

10210 is the immediate hurdle on the hourly chart above which 10408, the top made last week, would be the bigger hurdle to eye.

Traders are advised to hold short positions with the stop-loss of 10210.

9951 CONTINUES TO BE MAJOR SUPPORT; 10408 CONTINUES TO BE HURDLE

9951 CONTINUES TO BE MAJOR SUPPORT; 10408 CONTINUES TO BE HURDLE

WORLD MARKETS

US indices surged 1.6%-3% as tech stocks led the recovery from Wednesday's sell-off.

Microsoft reported earnings and revenue for the previous quarter that topped analyst expectations. Tesla posted a surprise profit. Twitter also posted better-than-expected results. AMD however plunged on issuing weak revenue guidance for the fourth quarter.

Dollar index rose a third of a percent to 96.60, it's highest level in more than two months.

European markets gained 0.6%-1.8%.  ECB left its benchmark interest rates unchanged. The bank also reiterated that net asset purchases by the ECB will sit at the current monthly pace of €15 billion euro until the end of December, when the central bank has said the buying will stop. Following the ECB announcement, Euro hit low of 1.1376, its lowest level since August 17.

US oil rose 51 cents to reach $67.33 a barrel while Brent added 77 cents to settle at $76.94.

AT HOME

Benchmark indices plunged a percent in today's trade to end at fresh 6-1/2 month low. Sensex lost 343 points to settle at 33690 while Nifty finished at 10124, down 100 points. BSE mid-cap and small-cap indices fell 0.6% and 1% respectively. All the BSE sectoral indices ended in red with Telecom and Realty indices leading the losses, down 2.9% and 1.8% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 1496 cr, 2605 cr and 202 cr respectively. DIIs were net buyers to the tune of Rs 340 cr.

Rupee depreciated 15 paise to end at 73.28/$.

Yes Bank posted lower than expected earnings and deterioration in asset quality. Net profit fell 4% y-o-y to Rs 965 cr while NII rose 28.2% to Rs 2418 cr. Loan growth at 61% was highest ever. Gross NPA ratio rose 29 bps q-o-q to 1.60% and net NPA ratio rose 25 bps to 0.84%. Net interest margin remained unchanged sequentially at 3.3%. 3.3. Slippages surged to Rs 1632 cr from 562 cr.

Bharti Airtel, while reported a net profit of Rs 119 cr, the same was aided by deferred tax write back, stripped off which, the company would have reported a higher-than-expected loss. Revenue was up 1.7% q-o-q at Rs 20422 cr. EBIDTA fell 7.2% to Rs 6243 cr and margin fell 290 bps to 30.6%.

OUTLOOK

Amazon reported after the bell missed revenue estimate and also gave weak revenue guidance for Q4. Alphabet also reported after the market close and also missed revenue expectations. Owing to these earnings, US futures are down 0.4%-0.8%.

Today morning, Nikkei and Shanghai are up 0.4% and 0.2% respectively but Hang Seng is down 0.2%. SGX Nifty is suggesting a flattish start for our market.

Yesterday, Nifty, after touching a low of 10079, rebounded to close at 10125 and is set to open flat today.

9951, the bottom made in March, continues to be next important support to eye.

10410, the top made on Monday, continues to be immediate hurdle.

ITC, Dr Reddy and ICICI Bank will report their quarterly earnings today.

9951 BELOW 10102; 10408 CONTINUES TO BE IMMEDIATE HURDLE

9951 BELOW 10102; 10408 CONTINUES TO BE IMMEDIATE HURDLE

WORLD MARKETS

US indices nosedived 2.4%-4.4% with technology stocks leading the losses. Dow and S & P 500 turned negative for the year.

Homebuilder stocks fell after data from Commerce Department showed new home sales fell to a two-year low, fuelling Worries about a slowing economy under pressure from rising interest rates. Bank shares fell on fears of slowing growth for mortgage and other loans.

US crude rose 39 cents to $66.82 a barrel on the back of a much bigger-than-expected drawdown in U.S. gasoline and diesel inventories. Bent however fell 27 cents to $76.17 a barrel.

Dollar index rose about half a percent to 96.36, its highest level in nearly 2-1/2 months.

European markets, except 0.1% higher FTSE, fell 0.3%-1.7% with Italy leading the losses.

AT HOME

Sensex and Nifty ended higher by 0.6% and 0.8% respectively after wild intraday swings to break four-day losing streak. Sensex settled at 34033, up 186 points while Nifty added 78 points to finish at 10224. BSE mid-cap and small-cap indices gained 1% and 0.7% respectively. BSE Telecom index soared 4.9%, becoming top gainer among the sectoral indices, followed by 2.2% higher Oil & Gas index. Healthcare and IT indices were the top losers, down 0.3% and 0.2% respectively.

FIIs net sold stocks worth Rs 2047 cr but net bought index futures and stock futures worth Rs 613 cr and 538 cr respectively. DIIs were net buyers to the tune of Rs 1873 cr.

Rupee appreciated 42 paise to end at 73.15/$.

Wipro reported better-than-expected earnings if one-offs are removed. Adjusted dollar revenue growth stood at 1.9% q-o-q while constant currency growth stood at 2.8%. Adjusted margins rose 250 bps to 18.1%. Company guided for 1-3% growth in IT Services revenue for Q3, which was in-line with market estimates.

Kotak Mahindra Bank reported in-line with estimated quarterly earnings with stable asset quality. Net profit rose 14.8% y-o-y to Rs 1142 cr while NII was up 16.3% at Rs 2689 cr. Gross NPA ratio improved 2 bps q-o-q to 2.15% and net NPA ratio fell 5 bps to 0.81%.

Bajaj Auto reported operationally weak performance. Revenue rose 21.4% to Rs 7987 cr, EBIDTA rose 3.5% to Rs 1343 cr, operating margin fell 300 bps to 16.8% and net profit was up 3% at Rs 1152 cr.

OUTLOOK

Today morning, Asian markets are trading with cuts of 2.3%-3.5% and SGX Nifty is suggesting about 100 points lower start for our market.

For past couple of sessions we have been mentioning that 10138, the bottom made on 11th October, is the immediate support, upon decisive breach of which 9951, the bottom made in March, would be the next downside target.

Nifty, on Tuesday, closed at 10146 after touching an intraday low of 10102 and yesterday extended the upmove by closing at 10225 but is set to open around 10125 today.

10102, the bottom made Tuesday, is the immediate support below which 9951, as mentioned above, would be the crucial support to eye.

10408, the top made on Monday, continues to be immediate hurdle.

Maruti and Bharti Airtel will report their quarterly earnings today.

NIFTY HOLDS 10138 SUPPORT; 10408 IS THE IMMEDIATE HURDLE

NIFTY HOLDS 10138 SUPPORT; 10408 IS THE IMMEDIATE HURDLE

WORLD MARKETS

US indices, after falling more than 2% in the initial trade, recovered sharply through the session to end with cuts of just 0.4%-0.6%.

Initial fall was attributed to weak results from Caterpillar and 3M while recovery was led by McDonald's, which rose more than 6% on strong earnings

US crude plunged 4.2% to $66.43 and Brent fell 4.6% to $76.13 a barrel, pressured by weakness in the US stock market and vows by top oil exporter Saudi Arabia to meet the demands of the world's oil consumers.

European markets fell 0.9%-2.2% with DAX leading the losses. The European Commission told Italy that it must make revisions to its draft budget proposal. Italy's Deputy Prime Minister responded that his country could not continue with past policies that enforced low fiscal spending.

AT HOME

Benchmark indices ended with cuts of nearly a percent, extending the losing streak to fourth straight day and closing at fresh six-month low. Sensex lost 287 points to settle at 33847 while Nifty finished at 10146, down 98 points. BSE mid-cap and small-cap indices fell 0.9% and 1.2% respectively.  BSE IT and Teck indices tumbled 2.8% and 2.5% respectively, becoming top losers among sectoral indices while Realty and Power indices were the sole gainers, up 0.4% and 0.1% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 340 cr, 577 cr and 191 cr respectively. DIIs were net buyers to the tune of Rs 116 cr.

Rupee ended unchanged at 73.56/$.

Ambuja Cement reported mixed set of numbers. Revenue rose 12.6% y-o-y to Rs 2614 cr, margins were down to 13.7% from 15.22% and PAT fell 34% to Rs 179 cr. Volume growth stood at 9%.

HCL Tech reported largel in-line with estimated numbers. Dollar revenue grew 2.1% q-o-q while constant currency growth stood at 3%. Margins improved 30 bps. The company maintained its FY19 revenue growth guidance at 9.5%-11.5% and margin guidance at 195%-20.5%.

OUTLOOK

Today morning, SGX Nifty is suggesting about 70 points higher start for our market.

In yesterday's report we had reiterated the view that 10138 cotinues to be important immediate support, upon decisive breach of which 9951, the bottom made in March, would be the next crucial support to eye.

Nifty, after touching a low of 10102, recovered to end at 10146, holding the 10138 support on closing basis, and is set to open around 10200 today.

10408, the top made on Monday, is the immediate resistance to eye.

10102, the low made yesterday, is now the immediate support below which 9951 would be the crucial support to eye.

Kotak Mahindra Bank, Bajaj Auto and Wipro will report their quarterly earnings today.

NIFTY SET TO RETEST 10140 SUPPORT

NIFTY SET TO RETEST 10140 SUPPORT

WORLD MARKETS

Dow and S & P 500, led lower by financials, fell 0.5% and 0.4% respectively while Nasdaq gained 0.3% as Amazon and Apple rose. S & P 500 fell for the fourth straight day while Nasdaq broke a three-day losing streak.

Bank of America, Citigroup, J.P. Morgan Chase and Goldman Sachs saw cuts of 1.4%-3% amid worries that higher mortgage rates would cap loan growth.

US crude rose 5 cents to settle at $69.17

European markets fell 0.1%-0.6%.

Earlier, Shanghai Composite rose more than 4% to notch its best day since March 2, 2016 as Chinese authorities pledged to support China's economy and offset the negative impact of U.S. tariffs.

AT HOME

After gaining a percent at the open, benchmark indices plunged a percent and half from the top of the day to end lower by half a percent, extending the losing streak to third straight day. Sensex lost 181 points to settle at 34134 while Nifty finished at 10245, down 58 points. BSE mid-cap and small-cap indices fell 0.7% and 2% respectively. Except a 0.1% higher Power and flat Auto indices, all the BSE sectoral indices ended in red with Energy and Oil & Gas indices leading the losses, down 3% and 2.4% respectively.

FIIs net sold stocks worth Rs 512 cr but net bought index futures and stock futures worth Rs 525 cr and 350 cr respectively. DIIs were net buyers to the tune of Rs 303 cr.

Rupee depreciated 24 paise to end at 73.56/$.

Asian Paint reported lower-than-expected revenue, EBIDTA and net profit numbers but volume growth was a beat.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.3%-1.4% and SGX Nifty is suggesting about 60 points lower start for our market.

In yesterday's report we had said that "10138, the bottom made on 11th October, continues to be important immediate support" while "10710-10780 an important resistance zone".

Nifty yesterday fell 58 points to finish at 10245 and is set to open around 10200 today.

10138 continues to be important immediate support to eye upon breach of which 9951, the bottom made in March, would be the next crucial support to eye.

10450 is the immediate hurdle on the hourly chart above which 10710, the top made last week, would be the bigger hurdle to eye.

Bajaj Finance, Bajaj Finserve and HCL Tech will report their quarterly earnings today.

10138-10780 CONTINUES TO BE BROAD RANGE

10138-10780 CONTINUES TO BE BROAD RANGE

WORLD MARKETS

Dow gained 0.3% but S & P 500 ended flat and Nasdaq fell half a percent on Friday as Procter & Gamble surged while Facebook, Amazon and Netflix all pulled back.

Procter & Gamble shares surged 8.8%, their biggest since Oct. 28, 2008, after reporting better-than-expected earnings. Honeywell and Schlumberger also reported better-than-forecast profits. American Express, PayPal and Skechers all posted on Thursday earnings that topped analyst expectations.

Brent crude futures rose 43 cents or 0.5% to $79.66 a barrel. WTI crude futures settled 47 cents or 0.7% up at $69.13 a barrel.

In Europe, FTSE rose 0.3% but DAX and CAC lost 0.3% and 0.6% respectively.

For the week, Dow gained 0.4%, S & P 500 ended flat while Nasdaq fell 0.6%. In Europe, FTSE and DAX gained 0.8% and 0.3% respectively but CAC fell 0.2%. Asian markets fell between 0.7%-2.2%. , Brent crude was 0.3% lower while WTI fell nearly 3%.

AT HOME

Wednesday's weakness got extended as benchmark indices tumbled just under a percent and half on the last trading day of the week. Sensex settled 463 points lower at 34315 while Nifty finished at 10303, down 150 points. BSE mid-cap and small-cap indices fell 1.1% and 1.3% respectively.

Except a 0.4% and 0.1% higher FMCG and Metal indices respectively, all the BSE sectoral indices ended in red with Energy and IT indices leading the losses, down 2.8% and 2.6% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 618 cr, 438 cr and 1664 cr respectively. DIIs were net sellers to the tune of Rs 2 cr.

Rupee appreciated 28 paise to end at 73.32/$.

For the week, Sensex and Nifty fell 1.2% and 1.6% respectively.

HDFC Bank reported strong quarterly numbers with in-line with estimated NII and profit growth along with stable asset quality. Net profit as well as NII rose 20.6% each to Rs 5005 cr and 11763 cr respectively. Gross NPA ratio was unchanged at 1.33% sequentially while net NPA ratio improved to 0.4% from 0.41%.

Ultratech Cement posted weaker-than-expected quarterly numbers. Net profit fell 9.4% y-o-y to Rs 391 cr while revenue were up 21% at Rs 7771 cr. EBIDTA fell 6.7% to Rs 1208 cr and margin fell 460 bps to 15.5%.

OUTLOOK

Today morning, Shanghai and Hang Seng are up 1.4% and 0.8% respectively but Nikkei is down 0.5%. SGX Nifty is suggesting a flattish start for our market.

Nifty, after coming in the vicinity of 200-DMA placed around 10780 by touching a high of 10710 Wednesday, reversed sharply to touch a low of 10250 on Friday before closing at 10303.

10138, the bottom made on 11th October, continues to be important immediate support to eye. Below 10138, 9951, the bottom made in March, would be the next crucial support to eye.

On the way up, 10710 is the top made during the week, 10760 is the 38.2% retracement level of the entire 11760-10138 fall and 200-DMA is placed around 10780, making 10710-10780 an important resistance zone, a crossover of which is required for a fresh upmove.

Asian Paints and Hindustan Zinc will report their quarterly earnings today.

10355-10325 IS THE SUPPORT ZONE

10355-10325 IS THE SUPPORT ZONE

WORLD MARKETS

US indices fell 1.3%-2.1% with Nasdaq leading the losses on worries over the U.S.-China trade war, rising interest rates and concerns over possible overvalued U.S. tech stocks.

Treasury yield rose after the minutes of latest Fed meeting showed on Wednesday that the central bank is still convinced tighter monetary policy is the best course of action for the economy to remain steady. The two-year yield hit its highest level since June 2008 before slipping. The benchmark 10-year note yield climbed to 3.205%.

National Economic Council Director Larry Kudlow, speaking at the Detroit Economic Club, said about China that "They are unfair traders. They are illegal traders. They have stolen our intellectual property," and added that "China has not responded positively to any of our asks."

Concerns over Saudi also persisted as Treasury Secretary Steven Mnuchin pulled out of a Saudi Arabia investment conference.

US oil fell, after plunging 3% on Wednesday, fell another 1.6% yesterday to touch$68.65 after U.S. crude stocks increased sharply by 6.5 million barrels in the previous week. Brent fell 67 cents to $79.38 a barrel.

Meanwhile Dow-member Travelers, Bank of New York Mellon, BB&T and Danaher were among the companies that reported better-than-expected earnings before the bell.

European markets fell 0.45-1.9% with Italy leading the losses as Italian bond yields climbed to their highest level since February 2014 following comments from ECB President Mario Draghi that one of the risks for the economy was countries trying to circumvent EU budget rules.

Meanwhile, China's Shanghai Composite plunged 3% yesterday to touch a 4-year low.

AT HOME

After gaining more than a percent in the initial trade, benchmark indices saw a sustained downward move through the session to end with cuts of more than a percent, breaking three-day winning streak. Sensex settled at 34779, down 383 points while Nifty lost 131 points to finish at 10453. BSE mid-cap and small-cap indices tumbled 2.2% each. Except a 0.1% higher FMCG index and flat IT index, all the BSE sectoral indices ended in red with Realty index and Bankex leading the losses, down 3.2% and 3% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 140 cr, 1077 cr and 44 cr respectively. DIIs were net sellers to the tune of Rs 343 cr.

Rupee depreciated 14 paise to end at 73.60/$.

Indiabulls Housing tumbled 14% on concerns over its exposure to SuperTech Ltd., a property developer whose credit facilities have been downgraded to default.

OUTLOOK

China's third quarter GDP growth has come in at 6.5%, lower than previous quarter's 6.7% and estimated 6.6% figures.

Today morning, Asian markets are trading with cuts of 0.65-1% and SGX Nifty is trading around 10320, suggesting a whooping 120 points lower start when compared to Wednesday's close of Nifty futures.

After 10480-10547 resistance zone was taken out, we had suggested that upmove can extend to 200-DMA placed around 10780. We had also said that 10440 was the immediate support on the hourly chart.

Nifty, after touching a high of 10710 on Wednesday, slipped to touch a low of 10436 before closing at 10453 and is set to open below 10350 today.

10355 and 10327 are the 61.8% and 67% retracement levels of the recent 10138-10710 upmove, making 10355-10327 important support zone. Upon breach of this support, 10138, the bottom made last week, would be the crucial support to eye.

Ultratech Cement will report its quarterly earnings today.