NIFTY ACHIEVES 10880 TARGET; TRAIL STOP-LOSS TO 10740

NIFTY ACHIEVES 10880 TARGET; TRAIL STOP-LOSS TO 10740

WORLD MARKETS

US indices fell 0.1%-0.25% on uncertainty over trade deal between US and China.

Trump told reporters that he was "close" to doing something on trade with China but added he wasn't sure if he wanted to do it.  "Because what we have right now is billions and billions of dollars coming into the United States in the form of tariffs or taxes, so I really don't know," he said.

Meanwhile, reports said that White House advisor Peter Navarro would be attending the dinner between Trump and Xi. This dampened hopes of trade deal, given his longstanding hawkish tone on U.S.-China trade.

Minutes of the latest Fed meeting showed some officials think the federal funds rate could be "near its neutral level," possibly signaling fewer rate hikes down the road.

US crude rose 2.3% to $51.45 a barrel on report that Russia had accepted the need to cut production, together with OPEC ahead of its meeting next week. Brent rose 75 cents, or 1.3%, to $59.51.

European markets ended mixed with modest changes.

AT HOME

Benchmark indices soared a percent and fifth to close at the highest level since 1st October 2018. Sesex added 453 points to settle at 36170 while Nifty finished at 10858, up 129 points. BSE mid-cap and small-cap indices however underperformed, rising just 0.6% and 0.2% respectively. BSE Metal index and Bankex climbed 2% and 1.8% respectively, becoming top gainers among the sectoral indices while IT index was the top loser, down 1%, followed by 0.7% lower Utilities and Teck indices.

FIIs net bought stocks, index futures and stock futures worth Rs 823 cr, 3303 cr and 657 cr respectively. DIIs were net buyers to the tune of Rs 973 cr.

Rupee appreciated 78 paise to end at 69.84/$, the highest level since August 21.

OUTLOOK

Today morning, Nikkei and Shanghai are marginally lower while Hang Seng is up 0.2%. SGX Nifty is suggesting about 25 points higher start for our market.

Readers would recall that we had given upside targets of 10775 followed by 10880 after immediate hurdle of 10625 was taken out.

Nifty yesterday soared to 10883 before closing at 10858, achieving 10880 target and vindicating our view.

10965, where 20-week moving average is placed, is the next upside target/resistance to eye.

200-DMA, placed around 10740, would now act as the immediate support, with the stop-loss of which, trading longs can be held on to.

10880 IS THE NEXT UPSIDE TARGET; TRAIL STOP-LOSS TO 10625

10880 IS THE NEXT UPSIDE TARGET; TRAIL STOP-LOSS TO 10625

WORLD MARKETS

US indices soared 2.3%-3%, with the Dow posting its biggest single day gain in eight months, after Federal Reserve Chairman Jerome Powell said interest rates are close to neutral, an important distinction from  "long way from neutral" remarks he made less than two months ago.

Bank stocks climbed as short-term borrowing rates fell and long-term rates rose following Powell's remarks.

Media reports suggesting that Trump was worried about the impact of a long trade war with China on markets and the economy, which could make him seek a compromise with China on trade, also boosted sentiment.

Dollar index fell about half a percent to 96.83.

US oil tumbled 2.5% to $50.29 a barrel and Brent fell $1.05, or 1.7% to $59.16 after U.S. crude inventories rose for the 10th week in a row.

European markets ended mixed with modest changes.

AT HOME

Sensex and Nifty gained 0.6% and 0.4% respectively, extending the winning streak to third straight day Sensex settled at 35717, up 204 points while Nifty added 43 points to finish at 10728. BSE mid-cap and small-cap indices however tumbled 0.5% each. BSE IT and Teck indices soared 3.6% and 2.9% respectively, becoming top gainers among the sectoral indices while Telecom and Realty indices tumbled 2.9% and 1.9% respectively, becoming top losers.

FIIs net sold stocks and stock futures worth Rs 961 cr and 571 cr respectively but net bought index futures worth Rs 1067 cr. DIIs were net buyers to the tune of Rs 330 cr.

Rupee appreciated 14 paise to end at 70.62/$.

Yes Bank tumbled as Moody’s Investors Service downgraded its foreign currency borrowings (FCBs) by two notches to non-investment grade on the back of a series of resignations from the Board.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.5%-1% and SGX Nifty is suggesting about 100 points higher start for our market.

In yesterday's report we had said that "10775, the top made on 19th November, continues to be next upside target above which 10880, the 50% retracement level of the entire 11760-10004 fall, would be the next target/resistance to eye".

Yesterday, Nifty touched a high of 10757 before closing at 10728 and is set to open above 10800 today.

10880, as mentioned above, continues to be next upside target to eye.

Immediate support on the hourly chart has moved up to 10625, with the stop-loss of which, trading longs should be held on to.

10775 IS THE NEXT TARGET/HURDLE; 10600 IMMEDIATE SUPPORT

 10775 IS THE NEXT TARGET/HURDLE; 10600 IMMEDIATE SUPPORT

WORLD MARKETS

Nasdaq ended flat while Dow and S & P 500 gained 0.3% and 0.4% respectively on hope that the U.S. and China will strike a compromise on trade.

National Economic Council Director Larry Kudlow said the White House was having "a lot of communication with the Chinese government at all levels" ahead of a meeting between Trump and his Chinese counterpart, Xi Jinping and that Trump thinks there is a "good possibility" the two countries can reach and agreement.

Kudlow's comments came after Trump told media that it was "highly unlikely" that the U.S. would delay from increasing tariffs on $200 billion in Chinese goods to 25% and a 10% tariff on laptops and iPhones imported from China could be imposed.

Fed Vice Chairman Richard Clarida said the central bank was "much closer" to a neutral rate than it was in December 2015, the first time the Fed hiked since the financial crisis. "How close is a matter of judgment, and there is a range of views on the FOMC," he said.

US crude fell 7 cents to $51.56 a barrel. Brent fell 27 cents to $60.21.

European markets fell upto 0.4%.

AT HOME

After falling about a third of a percent in the morning, benchmark indices rebounded smartly in noon trade to end higher by about half a percent. Sensex settled at 35513, up 159 points while Nifty added 57 points to finish at 10685. BSE mid-cap and small-cap indices gained 0.3% and 0.4% respectively. BSE IT and Teck indices climbed 1.7% and 1.4% respectively, becoming top gainers among the sectoral indices while Healthcare and Metal indices were the top losers, down 0.9% and 0.8% respectively.

FIIs net bought stocks worth Rs 812 cr but net sold index futures and stock futures worth Rs 705 cr and 103 cr respectively. DIIs were net buyers to the tune of Rs 31 cr.

Rupee appreciated 11 paise to end at 70.76/$.

OUTLOOK

Today morning, shanghai is flat while Hang Seng and Nikkei are up 0.3% and 0.7% respectively. SGX Nifty is suggesting about 30 points higher start for our market.

In yesterday's report we had said that 10665, the 61.8% retracement level of the recent 10775-10490 fall, is the immediate hurdle upon crossover of which, 10775, the top made last week, would be the next target to eye.

Nifty crossed 10665 hurdle and went all the way to 10695 before closing at 10685 and is set to open above 10700 today.

10775, the top made on 19th November, continues to be next upside target as well as resistance to eye. If Nifty is able to take out this hurdle, 10880, the 50% retracement level of the entire 11760-10004 fall, would be the next target/resistance to eye.

10600 is the immediate support on the hourly chart, below which 10490, the bottom made on Monday, would be the important support to eye. Traders are advised to hold long positions with the stop-loss of 10600.

10665 IS THE IMMEDIATE HURDLE; 10490-10440 IS THE SUPPORT ZONE

10665 IS THE IMMEDIATE HURDLE; 10490-10440 IS THE SUPPORT ZONE

WORLD MARKETS

Dow and S & P 500 climbed 1.5% each while Nasdaq soared 2.1% as shares of some beaten-down tech companies rebounded.

Shares of Facebook, Amazon, Apple, Netflix and Google-parent Alphabet all rose at least 1%. General Motors rose 4% after it revealed plans to cut production at several plants and reduce its salaried workforce by 15%. Retailers rose broadly as Black Friday online sales totaled a record $6.22 billion, a 23.6% jump from last year..

US oil rose 2.4% to $51.63 a barrel. Brent was up 2.9% at $60.48.

European markets gained 1%-2.8%. Media reports suggested that Italy's governing coalition could cut 2019's budget deficit target to as low as 2% of gross domestic product, to dodge a disciplinary procedure from Brussels. On the data front, German ifo Business Climate index dropped to 102.0 points, in comparison to 102.9 points last month.

AT HOME

After falling about a third of a percent in the morning, benchmark indices surged in the noon trade to end higher by a percent. Sensex settled at 35354, up 373 points while Nifty added 101 points to finish at 10628. Broader market however underperformed, with BSE mid-cap index rising just 0.1% and small-cap index ending lower by 0.2%. BSE FMCG index and Bankex climbed 2.2% and 1.3% respectively, becoming top gainers among the sectoral indices while Metal and Healthcare indices were the top losers, down 1.3% and 0.9% respectively.

FIIs net bought stocks and stock futures worth Rs 446 cr and 475 cr respectively but net sold index futures worth Rs 168 cr. DIIs were net buyers to the tune of Rs 50 cr.

Rupee depreciated 20 paise to end at 70.87/$.

OUTLOOK

Today morning, Nikkei and Shanghai are up 0.2% and 0.3% respectively but Hang Seng is down 0.4%. SGX Nifty is suggesting about 50 points lower start for our market.

After Nifty broke 10625 support, we had given downside target of 10440. Yesterday, Nifty, after touching a low of 10490, rebounded to end at 10628 but is set to open below 10600 today.

10665, the 61.8% retracement level of the recent 10775-10490 fall, is the immediate hurdle to eye, a crossover of which is required for a fresh upmove. If that happens, 10775, the top made last week, would be the next target to eye.

10489, the low made yesterday, roughly coincided with the 20-day moving average and 10440 is the bottom made on 13th November, making 10490-10440 immediate support zone.

10440 CONTINUES TO BE DOWNSIDE TARGET/SUPPORT; 10650 IMMEDIATE HURDLE

10440 CONTINUES TO BE DOWNSIDE TARGET/SUPPORT; 10650 IMMEDIATE HURDLE

WORLD MARKETS

US indices fell 0.5%-0.7% on Friday as technology shares extended correction and oil prices resumed free fall.

Facebook, Amazon, Apple, Netflix and Google-parent Alphabet all fell with Apple down 2.5% on reports that the company plans to cut prices for the iPhone XR in Japan because it's not selling well.

US oil nosedived $4.21 or 7.7% to $50.42/barrel, its lowest level since mid-October 2017. Brent fell $3.66 or 5.9% to $58.94.

European markets, except 0.1% lower FTSE, gained 0.2%-0.6%. Eurozone IHS Markit Flash Composite PMI for November came in at 52.4, the weakest number since late 2014. Bond yields fell on increased bets that weak growth across the euro zone (19 of the 28 European Union members) would slow the ECB's plan to withdraw stimulus.

For the week, US indices nosedived 3.8%-4.4%, extending the losing streak to second consecutive week  and marking the worst thanksgiving week since 2011. European markets fell 0.9%-1.6%. In Asia, Shanghai was down 3.7% while Hang Seng and Nikkei were off 1% and 0.2% respectively. WTI was down about 12%, extending the losing streak to seventh consecutive week and suffering the worst weekly loss since January 2016.

European Union leaders gave their official endorsement of U.K. Prime Minister May's Brexit withdrawal yesterday during a gathering in Brussels. May however faces a tough challenge next month when she needs to gain Parliamentary approval for the deal as many politicians in the U.K. believe that May is making too many concessions to the EU. May's failure here could lead to her being toppled as leader or even the U.K. crashing out of the EU without a deal.

AT HOME

After rising just under half a percent in the first hour, Sensex and Nifty plunged more than a percent from the top of the day to end lower by 0.6% and 0.7% respectively, extending the losing streak to third straight day. Sensex lost 218 points to settle at 34981 while Nifty finished at 10526, down 73 points. BSE mid-cap and small-cap indices fell 0.7% and 0.4% respectively. Except a 0.1% higher Capital Goods index, all the BSE sectoral indices ended in red with Metal and Telecom indices leading the losses, down 1.8% and 1.6% respectively.

FIIs net bought stocks and index futures worth Rs 446 cr and 1601 cr respectively but net sold stock futures worth Rs 289 cr. DIIs were net buyers to the tune of Rs 50 cr.

Rupee appreciated 78 paise to end at 70.67/$, marking a three-month high.

For the week, Sensex and Nifty fell 1.3% and 1.5% respectively, breaking three-week winning streak.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.2%-0.6% and SGX Nifty is trading around 10575, suggesting about 50 points higher start for our market when compared to Thursday's close of Nifty futures.

We had given downside target of 10440 after Nifty broke immediate support of 10625. Nifty on Thursday plunged to 10512 before closing at 10526 and is set to open above 10550 today.

10440, the bottom made on 13th November, continues to be important immediate support to eye.

10650 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts should be held on to.

10440 IS THE DOWNSIDE TARGET/SUPPORT; 10671 IMMEDIATE HURDLE

10440 IS THE DOWNSIDE TARGET/SUPPORT; 10671 IMMEDIATE HURDLE

WORLD MARKETS

After rising in the first half, US indices gave away much of the gains later. Dow ended absolutely flat while S & P 500 and Nasdaq finished higher by 0.3% and 0.9% respectively.

Apple gave up a 2.1% gain toward the end of the day to close 0.1% lower. Other tech shares like Facebook, Amazon and Alphabet all climbed more than 1%.

Durable goods orders fell 4.4% in October, more than expected. Weekly jobless claims rose to a more than four-month high last week.

US crude rebounded 2.3% to settle at $54.63 a barrel. Brent rose 1.3% to $63.34. U.S. crude stocks rose 4.9 million barrels last week, a larger-than-expected increase.

European markets climbed 1%-1.6%. Italian banks gained amid reports the country's Deputy Prime Minister could be prepared to review the government's 2019 budget. However, the European Union has since announced it will look to sanction Italy with a fine if the country continues to refused to submit a budget proposal that abides by its rules.

AT HOME

Sensex and Nifty fell 0.8% and 0.5% respectively, extending the losing streak to second straight day. Sensex lost 274 points to settle at 35199 while Nifty finished at 10600, down 56 points. BSE mid-cap and small-cap indices however gained 0.6% and 0.1% respectively. BSE IT and Teck indices tumbled 2.9% and 2.5% respectively, becoming top losers among the sectoral indices while Realty and Healthcare indices were the top gainers, up 1.5% and 1% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 1652 cr, 705 cr and 111 cr respectively. DIIs were net buyers to the tune of Rs 607 cr.

Dr Reddy surged after a US court ruling allowed it to sell a generic version of opioid treatment drug, Suboxone.

OUTLOOK

Today morning, Asian markets are trading little changed and SGX Nifty is suggesting a flattish start for our market.

In yesterday's report we had reiterated the view that 10625 was the immediate support, a breach of which will confirm a sell on the hourly chart and would pave the way for further correction.

Nifty broke 10625 support and fell all the way to 10562 before closing at 10600 and is set to open flat today.

10440, the bottom made last week, continues to be next downside target/support to eye. 10671, the top made yesterday, is the immediate hurdle above which 10775, the top made on Monday, would be the next important hurdle to eye.

US markets will remain shut today for the Thanksgiving holiday. Indian markets will remain shut tomorrow for Gurunanak Jayanti.

10440 BELOW 10625; 10850 ABOVE 10775

10440 BELOW 10625; 10850 ABOVE 10775

WORLD MARKETS

US indices nosedived 1.7%-2.2% to erase gain for 2018, as decline in Target shares pressured retailers, while steep losses in crude pushed down the energy sector and tech shares extended the correction.

Target fell 10.5% after reporting weaker-than-expected earnings for the previous quarter.

US oil plunged 6.6% to $53.43 a barrel, its lowest level since October 2017 after US President Trump issued a statement saying the United States stands by Saudi Arabia following mounting criticism on the kingdom after the killing last month of journalist and U.S. resident Jamal Khashoggi by Saudi agents. Brent too dipped 6.6% to reach $62.36, its lowest since December 2017.

European markets fell 0.8%-1.9%. Sterling partially rebounded from opening lows after Bank of England Governor Mark Carney said the central bank may not cut interest rates in the event of a no-deal withdrawal from Europe.

AT HOME

Sensex and Nifty tumbled 0.8% and 1% respectively to break 3-day winning streak. Sensex lost 300 points to settle at 35474 while Nifty finished at 10656, down 107 points.  BSE mid-cap and small-cap indices fell 1% and 0.9% respectively. All the BSE sectoral indices ended in red with Metal and Basic Material indices leading the losses, down 2.8% and 1.9% respectively.

FIIs net sold stocks and stock futures worth Rs 753 cr and 573 cr respectively but net bought index futures worth Rs 170 cr. DIIs were net sellers to the tune of Rs 44 cr.

Rupee appreciated 19 paise to end at 71.45/$.

OUTLOOK

Today morning, Main Asian markets are trading with cuts of 1%-1.3% and SGX Nifty is suggesting about 20 points lower start for our market.

In yesterday's report we had said that 34-week moving average, placed around 10850, is the next hurdle to eye and had asked trailing stop-loss to 10625 in trading longs.

Nifty fell 107 points to finish at 10656 and is set to open modestly lower today.

10625 continues to be immediate support on the hourly chart, upon sustained trading below which 10440, the bottom made last week, would be the next important support.

10775, the top made on Monday, is now the immediate hurdle, above which, 34-week moving average, placed around 10850, would be the bigger hurdle to eye.

10850 IS THE NEXT TARGET/HURDLE; TRAIL STOP-LOSS TO 10625

10850 IS THE NEXT TARGET/HURDLE; TRAIL STOP-LOSS TO 10625

WORLD MARKETS

Dow and S & P 500 plunged 1.6% each while Nasdaq nosedived 3% amidst sell-off in technology shares and worries over US-China trade war.

Apple led tech shares lower after media report suggested that the company has cut production orders for the new iPhones unveiled earlier this year. Facebook dropped 5.7% on concerns over fallout from its handling of the 2016 election and foreign influence on its platform. News report that Chinese authorities have alleged "massive evidence" of antitrust violations by Samsung, SK Hynix and Micron Technology also weighed on the sentiment.

US Vice President Mike Pence said in a speech Sunday that there would be no end to U.S. tariffs on $250 billion worth of Chinese goods unless Beijing changed its ways.

WTI crude rose 30 cents to $56.76 a barrel while Brent rose 21 cents to $66.97.

European markets fell between 0.2%-0.9%.

AT HOME

Sensex and Nifty gained 0.9% and 0.8% respectively, extending the winning streak to third consecutive day and  closing at fresh 1-1/2 month high. Sensex added 317 points to settle at 35774 while Nifty finished at 10763, up 81 points. BSE mid-cap and small-cap indices gained 0.4% each. Except a 0.2% lower Oil & Gas index, all the BSE sectoral indices ended in green with Realty and FMCG indices leading the gains, up 1.4% and 1.3% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 1103 cr, 861 cr and 34 cr respectively. DIIs were net sellers to the tune of Rs 310 cr.

Rupee appreciated 28 paise to end at 71.64/$. sep 4

RBI's board yesterday discussed the Basel regulatory capital framework, a restructuring scheme for stressed MSMEs, bank health under Prompt Corrective Action (PCA) framework and the Economic Capital Framework (ECF) of RBI.

The Board decided to constitute an expert committee to examine the ECF, the membership and terms of reference of which will be jointly determined by the government and the RBI. It also advised that the RBI should consider a scheme for the restructuring of stressed standard assets of MSME borrowers with aggregate credit facilities of up to Rs 25 crore, subject to conditions of ensuring financial stability. With regard to banks under PCA, it was decided the matter will be examined by the Board for Financial Supervision (BFS) of RBI.

While deciding to retain the capital to risk-weighted assets ratio (CRAR), also called the capital adequacy ratio (CAR), at 9%, the RBI board agreed to extend the transition period for implementing the last tranche of 0.625% under the Capital Conservation Buffer (CCB), by one year, i.e., up to March 31, 2020.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.7%-1% and SGX Nifty is suggesting about 25 points lower start for our market.

In yesterday's report we had said that "200-DMA, placed around 10760, continues to be immediate hurdle to eye upon sustained trading above which 34-week moving average, placed around 10850, would be the next important hurdle to eye".

Nifty rose 81 points to close at 10763 and is set to open below 10750 today.

Having crossed 200-DMA, 34-week moving average, placed around 10850, continues to be next important target as well as resistance to eye.

Immediate support on the hourly chart has moved up to 10625, with the stop-loss of which, trading longs should be held on to.

NIFTY SET TO TEST 10710-10760 RESISTANCE ZONE; RBI BOARD MEET IN FOCUS

NIFTY SET TO TEST 10710-10760 RESISTANCE ZONE; RBI BOARD MEET IN FOCUS

WORLD MARKETS

Dow and S & P 500 rose 0.5% and 0.2% respectively while Nasdaq fell 0.2% on Friday.

Stocks hit their session highs after President Trump said he was hopeful the U.S. and China will strike a deal on trade. However, White House officials later told CNBC that a deal was not coming soon and that people should not read too much into Trump's comments.

Tech was under pressure again as shares of Nvidia plunged 18.8% on disappointing revenue and guidance.

Oil prices, after rising earlier in the session on expectations that OPEC and its allies would agree to cut output next month, pulled back to end just marginally higher. Brent added 14 cents to end at $66.76 a barrel while US crude ended flat at $56.46.

Brexit continued to be in focus amidst heightened fears the U.K. could soon crash out of the European Union without a divorce deal.

European markets fell 0.1%-0.3%.

For the week, US indices fell 1.6%-2.2%, snapping two-week winning streak. European markets were off 1.3%-1.6%. Asia was mixed with Nikkei off 2.6% while Shanghai and Hang Seng were up 3.1% and 2.3% respectively. WTI oil fell 6.2%, posting sixth straight weekly loss.

AT HOME

Benchmark indices gained six tenth of a percent, extending the winning streak to second straight day and closing at the highest level since 3rd October. Sensex added 196 points to settle at 35457 while Nifty finished at 10682, up 65 points. BSE mid-cap index ended flat while small-cap index lost 0.4%. BSE Telecom index soared 6.3%, becoming top gainer among the sectoral indices, followed by 1.5% higher Energy index. Metal index was the top loser, down 1.6%, followed by 0.5% lower Oil & Gas index.

FIIs net bought stocks and index futures worth Rs 845 cr and 163 cr respectively but net sold stock futures worth Rs 444 cr. DIIs were net sellers to the tune of Rs 372 cr.

Rupee appreciated 6 paise to end at 71.92/$.

For the week, Sensex and Nifty gained 0.8% and 0.9% respectively, extending the winning streak to third straight week.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.3%-0.6% and SGX Nifty is suggesting about 50 points higher start for our market.

In Friday's report we had mentioned that upon sustained trading above 10645, which was the top made on last Monday, 10710 and 10760 would be next upside targets to eye where 10710 is the top made in mid-October while 10760 is where the 200-DMA is placed.

Nifty, on Friday, rose to end at 10682 and is set to open right in the middle of the 10710-10760 resistance zone mentioned above.

10760 continues to be immediate hurdle to eye upon sustained trading above which 34-week moving average, placed around 10850, would be the next important hurdle to eye.

Immediate support on the hourly chart has moved up to 10575, with the stop-loss of which, trading longs should be held on to.

The central board of the Reserve Bank of India will meet today amid a public battle over a host of issues ranging from banking regulation to the central bank’s own balance sheet. Four key issues, which are bone of contention and are expected to come up for discussion are 1) Minimum capital banks need to maintain 2) Providing more liquidity 3) Ease the filters that push a bank to Prompt Corrective Action (PCA) and 4) Special dispensation for Small and Medium Enterprises (SMEs).

10710, 10760 ABOVE 10645; 10440 CONTINUES TO BE IMMEDIATE SUPPORT

10710, 10760 ABOVE 10645; 10440 CONTINUES TO BE IMMEDIATE SUPPORT

WORLD MARKETS

US indices gained 0.8%-1.7%, with the S & P 500 and Dow snapping 5-day and 4-day losing streak respectively as Apple and JP Morgan led the gains.

A report that representatives from US and China have intensified efforts to reach an agreement in the growing trade war, also boosted the sentiment. China reportedly responded to Washington's requests to deal with a range of American grievances, and the possibility of concessions was reviewed.

Initial claims for state unemployment benefits rose 2,000 to 216,000 for the week ended Nov. 10. Retail sales rose 0.8%, higher than the 0.5% expected.

US crude rose 21 cents to $56.46 while Brent added 42 cents to $66.54 a barrel.

Sterling plunged 1.6% against the dollar after UK Brexit Secretary Dominic Raab resigned from his post, saying he could not reconcile with the terms of Theresa May's proposed Brexit deal, after the promises the ruling Conservative Party made to the country in an election manifesto last year. .

European markets, except 0.1% higher FTSE, fell 0.4%-0.7%.

AT HOME

Benchmark indices gained about a third of a percent to close at the highest level since 3rd October 2018. Sensex added 118 points to settle at 35260 while Nifty finished at 10616, up 40 points. BSE mid-cap index rose 0.7% while small-cap index ended flat.  BSE Consumer Durables and Realty indices climbed 1.6% each, becoming top gainers among the sectoral indices while Telecom index tumbled 1.2%, becoming top loser, followed by 0.6% lower Utilities index.

FIIs net bought stocks and index futures worth Rs 2043 cr and 419 cr respectively but net sold stock futures worth Rs 568 cr. DIIs were net sellers to the tune of Rs 165 cr.

Rupee appreciated 33 paise to end at 71.98/$.

India's trade deficit widened to USD 17.13 bn in October from $13.98 bn in September. Exports rose 17.9% y-o-y to $26.98 bn and imports rose 17.6% to $44.11 bn.

OUTLOOK

Today morning, Hang Seng and Nikkei are down 0.5% and 0.2% respectively while Shanghai is up 0.2%. SGX Nifty is suggesting about 30 points higher start for our market.

In yesterday's report we had reiterated the view that 10645, the top made on Monday, is the immediate hurdle, upon crossover of which 10710 and 10760 would be next upside targets to eye.

Yesterday, Nifty, after touching a high of 10646, eased to close at 10616 and is set to open around 10645 today.

As mentioned above, upon sustained trading above 10645, 10710 and 10760 would be next upside targets to eye where 10710 is the top made in mid-October while 10760 is where the 200-DMA is placed.

10440-10400 continues to be immediate support zone.