10710, 10765 ABOVE 10607; TRAIL STOP-LOSS TO 10400

10710, 10765 ABOVE 10607; TRAIL STOP-LOSS TO 10400

WORLD MARKETS

Yesterday, Dow ended flat while S & P 500 and Nasdaq fell 0.2% and 0.5% respectively, after digesting the latest monetary policy decision from the Federal Reserve.

Earlier, On Wednesday, Dow and S & P 500 soared 2.1% each while Nasdaq climbed 2.6% after the midterm election results came in about as expected and President Trump indicated he is willing to work with Democrats on policy initiatives that would help the economy keep growing. Democrats won control of the House of Representatives while Republicans retained their hold on the Senate, as the midterm's outcome split Congress.

The Fed yesterday kept interest rates unchanged, as was widely expected. However, the central bank said in a statement it expects "further gradual increases" in the overnight rate.

Dollar index rose about half a percent to 96.63.

US oil fell $1 or 1.6% to $60.67, extending the fall to ninth straight day and briefly wiping out its gains for the year on further signs of growing supply even as data showed record Chinese oil imports. Brent fell $1.33 or 1.9% to $70.74 a barrel.

In Europe, FTSE rose 0.3% while CAC, DAX and Italy fell 0.1%-0.6%.

AT HOME

Benchmark indices ended higher by 0.7% each on the truncated Muhurat trading session on Wednesday. Sensex added 245 points to settle at 35237 while Nifty finished at 10598, up 68 points. BSE mid-cap and small-cap indices rose 0.8% and 1.2% respectively.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.8%-1.3% and SGX Nifty is suggesting about 30 points lower start for our market.

In Tuesday's report we had said that "10607, the top made last week, continues to be immediate hurdle above which 10710, the top made in mid-October, would be the next important resistance".

Nifty, after touching a high of 10600, slipped to end at 10530 on Tuesday. On Diwali Muhurat trading session, after touching a high of 10616 at the open, the benchmark closed at 10598 and is set to open lower today.

10607, the top made last week, continues to be immediate hurdle, upon sustained trading above which, 10710-10765 would be the crucial resistance zone where 10710 is the top made in mid-October while 10765 is where 200-DMA is placed.

Immediate support on the hourly chart has moved up to 10400, with the stop-loss of which, trading longs can be held on to.