10985 IS THE NEXT HURDLE/TARGET; 10764-10747 CONTINUES TO BE SUPPORT ZONE

10985 IS THE NEXT HURDLE/TARGET; 10764-10747 CONTINUES TO BE SUPPORT ZONE

WORLD MARKETS

Dow and S & P 500 fell 0.3% and 0.1% respectively while Nasdaq gained 0.1% on Friday.

US oil rose 72 cents or 1.6% to $45.33 a barrel while Brent rose 6 cents to $52.22.

European markets climbed 1.4%-2.3%.

For the week, US indices climbed 2.7%-4%, breaking three-week losing streak. In Europe, FTSE gained 0.2% but DAX and CAC fell 0.7% and 0.3% respectively. In Asia, Nikkei, Hang Seng and Shanghai fell 0.8%, 1% and 0.9% respectively.

AT HOME

Benchmark indices gained seven tenth of a percent, extending the winning streak to third consecutive day. Sensex added 269 points to settle at 36076 while Nifty finished at 10860, up 80 points. BSE mid-cap and small-cap indices climbed 0.9% each. Except 0.1% lower Telecom index, all the BSE sectoral indices ended in green with Consumer Durable index leading the tally, up 2.2%, followed by 1.3% higher Healthcare index.

FIIs bet sold stocks worth Rs 120 cr but net bought index futures and stock futures worth Rs 632 cr and 824 cr respectively. DIIs were net buyers to the tune of Rs 1199 cr.

Rupee appreciated 41 paise to end at 69.94/$.

For the week, Sensex and Nifty gained 0.9% and 1% respectively.

OUTLOOK

U.S. President Donald Trump took to Twitter on Saturday and said that a "long and very good call" had taken place between himself and Chinese President Xi Jinping. "Deal is moving along very well. If made, it will be very comprehensive, covering all subjects, areas and points of dispute. Big progress being made!", he added.

Today, Nikkei and Shanghai are shut while Hang Seng is up 0.7%. SGX Nifty is suggesting about 50 points higher start for our market.

In Friday's report we had said that "10840 continues to be immediate hurdle, above which, 10985, the top made last week, would be the next target/resistance to eye."

Nifty crossed 10840 hurdle on Friday to close at 10860 and is set to open above 10900 today.

10985, the top made on 19th December, continues to be important immediate hurdle to eye. Upon crossover of 10985, 11090 and 11180, the 61.8% and 67% retracement levels of the entire 11760-10004 fall, would be the next targets to eye. 10764-10747, the gap created by Thursday's gap-up opening, continues to be immediate support.

10985 ABOVE 10840; 10534 CONTINUES TO BE IMMEDIATE SUPPORT

10985 ABOVE 10840; 10534 CONTINUES TO BE IMMEDIATE SUPPORT

WORLD MARKETS

After falling more than 2.5%, US indices rebounded sharply in late trade to end with gains of 0.4%-1.1%.

Initial dip was on the back of renewed tensions between China and the United States. Media reports suggested that President Trump is considering an executive order to ban U.S. companies from using equipment built by Chinese firms Huawei and ZTE.

US oil fell $1.61, or 3.5% to $44.61 while Brent was off $2.45, or 4.5% at $52.02 a barrel.

European markets fell 0.6%-2.4% with DAX leading the losses.

AT HOME

Benchmark indices gained four tenth of a percent, extending the winning streak to second consecutive day. Sensex settled at 35807, up 157 points while Nifty added 50 points to finish at 10780. BSE mid-cap and small-cap indices rose 0.3% each. BSE Energy and IT indices climbed 1.5% and 1.3% respectively, becoming top gainers among the sectoral indices while Auto index was the top loser, down 0.4%, followed by 0.3% lower Metal, Bankex and Basic Material indices.

FIIs net bought stocks, index futures and stock futures worth Rs 1732 cr, 1040 cr and 670 cr respectively. DIIs were net sellers to the tune of Rs 663 cr.

Rupee depreciated 28 paise to end at 70.35/$.

For the December derivative series, Nifty fell 0.7%.

India reported a fiscal deficit of Rs 7.16 lakh crore during April-November, which translates to 114.8% of its full-year target. During the same time period last financial year 2017-18, the fiscal deficit was 112% of the budgeted estimates.

OUTLOOK

Today morning, Nikkei is down half a percent while Hang Seng and Shanghai are trading with modest gains. SGX Nifty is suggesting about 50 points higher start for our market.

After rebounding from the vicinity of our indicated 10510 support on Wednesday, Nifty yesterday reversed from the vicinity of 10840 hurdle mentioned by us as, after touching a high of 10834, Nifty fell to close at 10780.

It however is set to open around yesterday's high today.

10840 continues to be immediate hurdle, a sustained trading above which is required for a fresh upmove. If that happens, 10985, the top made last week, would be the next target/resistance to eye.

10534, the low made Wednesday, continues to be immediate support.

US EQUITIES POST BEST DAY IN A DECADE; OIL CLIMBS MOST IN 2-YEARS

US EQUITIES POST BEST DAY IN A DECADE; OIL CLIMBS MOST IN 2-YEARS

WORLD MARKETS

Dow and S & P 500 climbed 5% each while Nadaq soared 5.8%, posting their best day in nearly a decade and the biggest post-Christmas rally ever.

Retailers were among the best performers after data released by Mastercard SpendingPulse showed retailers were having their best holiday season in six years. Amazon jumped 9.45%, snapping a four-day losing streak, after the company said it sold a record number of items this holiday season.

Energy stocks also jumped as oil prices posted their largest one-day increase since Nov. 30, 2016. WTI oil rose $3.69, or 8.7%, to $46.22 and Brent soared $4, or 7.9%, to $54.47 a barrel.

AT HOME

After falling more than a percent, benchmark indices saw a mammoth rebound of nearly 2% to end higher by about six tenth of a percent, breaking three-day losing streak. Sensex settled at 35704, up 234 points while Nifty added 66 points to finish at 10729. BSE mid-cap index ended flat while small-cap index fell 0.2%. BSE Telecom and Capital Goods indices were the top gainers among the sectoral indices, up 1.7% and 0.7% respectively. IT and Realty indices were the top losers, down 0.7% and 0.5% respectively.

FIIs net bought stocks worth Rs 80 cr but net sold index futures and stock futures worth Rs 755 cr and 272 cr respectively. DIIs were net sellers to the tune of Rs 138 cr.

Rupee appreciated 7 paise to end at 70.07/$.

OUTLOOK

Today morning, Nikkei is up 3.6% while Hang Seng and Shanghai are up 0.7% each. SGX Nifty is suggesting about 40 points higher start for our market.

In yesterday's report we had said that 10610, the 38.2% retracement level of the entire 10004-10985 upmove, is the next support to eye below which 10500, the 50% retracement level of the 10004-10985 upmove, would be the next support.

Nifty, after achieving 10610 target, went all the way to 10534, from where it rebounded sharply to end at 10730 and is set to open above 10750 today.

Immediate hurdle on the hourly chart is placed around 10840, a crossover of which is required for a fresh upmove. If that happens, 10985, the top made last week, would be the next target/resistance to eye.

10534, the low made yesterday, is now the immediate support.

10610 IS THE NEXT SUPPORT; 10850 IMMEDIATE HURDLE

10610 IS THE NEXT SUPPORT; 10850 IMMEDIATE HURDLE

WORLD MARKETS

US indices plunged 2.2%-2.9% on Monday, suffering their worst Christmas Eve performance in history, on the back of political turmoil in Washington and persisting growth concerns.

Multiple reports said President Donald Trump is discussing how to remove Jerome Powell from his position as chairman of the Federal Reserve. Treasury Secretary Mnuchin sought to calm the fears by tweeting that Trump never suggested firing Powell and doesn't believe he has the right to do so. Additionally, Defense Secretary James Mattis announced he would step down at the end of February, saying his views do not align with the president's.

Mnuchin held calls on Sunday with the heads of the six largest U.S. banks in order to reassure nervous investors that the financial markets and economy were functioning properly

Trump resumed his attack on the Fed on Monday, tweeting that the central bank is "the only problem" with the U.S. economy.

US crude plunged $3.06, or 6.7% to $42.53, the lowest level since June 21, 2017 and Brent fell 6.2%t, or $3.35, to $50.47 a barrel, hitting a 16-month low.

European markets fell 0.5%-1.4%.

U.S. President Trump on Tuesday once again said the Federal Reserve was hiking interest rates too quickly, continuing his open criticism of the central ban.

AT HOME

Benchmark indices fell about eight tenth of a percent, extending the losing streak to second straight day. Sensex lost 272 points to settle at 35470 while Nifty finished at 10663, down 90 points. BSE mid-cap and small-cap indices fell 0.5% and 1.1% respectively. BSE Realty and Metal indices tumbled 2.3% and 2.2% respectively, becoming top losers among the sectoral indices while IT and Teck indices were the top gainers, up 0.5% and 0.4% respectively.

FIIs net sold stocks and stock futures worth Rs 577 cr and 646 cr respectively but net bought index futures worth Rs 205 cr. DIIs were net buyers to the tune of Rs 186 cr.

Rupee appreciated 1 paise to end at 70.13/$.

OUTLOOK

Today morning, Nikkei is up 1.5%, Shanghai is up 0.3% and SGX Nifty is trading around 10640, suggesting about 40 points lower start when compared to Monday's close of Nifty future.

Readers would recall that after Nifty broke 10850 support, we had given downside target of 34-DMA placed around 10700 below which we had said 10660 and 10580, the 50% and 61.8% retracement levels of the recent 10330-10985 upmove, would be the next supports to eye.

Nifty, on Monday, achieved and broke 34-DMA level and fell further to 10649 before closing at 10663 and is set to open around 10620 today.

10610, the 38.2% retracement level of the entire 10004-10985 upmove, is the next support to eye. Below 10610, 10500, the 50% retracement level of the 10004-10985 upmove, would be the next support.

Immediate hurdle on the hourly chart is placed at 10850, with the stop-loss of which, trading shorts can be held on to.

STAY SHORT WITH THE STOP-LOSS OF 10890

STAY SHORT WITH THE STOP-LOSS OF 10890

WORLD MARKETS

US indices, after opening higher, sold-off on Friday to end with cuts of 1.8%-3%.

Stocks initially traded higher after Federal Reserve Bank of New York President John Williams said that the central bank could reassess its interest rate policy and balance sheet reduction in the new year if the economy slows.

However, President Donald Trump's trade adviser, Peter Navarro later said that it would be "difficult" for the U.S. and China to arrive at a permanent economic agreement after a 90-day ceasefire in the trade tensions. Sentiment was also dampened after President Donald Trump said that there is a very good chance the House funding bill will not pass in the Senate and that the administration is prepared for a long shutdown. As Republicans need Democratic votes to pass spending legislation in the Senate, a partial shutdown is all but assured if the GOP insists on funding for the barrier.

US crude fell 29 cents to $45.59 a barrel to close at the lowest level since January 2016.  Brent fell 40 cents to $53.95.

In Europe, FTSE, CAC and DAX ended flat to modestly higher while Italy and Spain tumbled 1% and 0.5% respectively. Data from Italy showed manufacturing confidence dipped to 103.6 in December from a revised 104.3 in November. Meanwhile, business confidence slipped to 99.8 this month, from 101.0 in November.

For the week, US indices nosedived 6.8%-8.3% with the Dow suffering its worst fall in 10 years.  crude collapsed 11% at $45.59, marking the worst fall since January 2016.

AT HOME

Benchmark indices nosedived nearly 2%, wiping out all the gains made during the week. Sensex settled at 35742, down 690 points while Nifty lost 198 points to finish at 10754. BSE mid-cap and small-cap indices fell 1.8% and 1% respectively. All the BSE sectoral indices ended in red with IT and Teck indices leading the losses, down 2.6% each, followed by 2.1% lower Auto index.

FIIs net bought stocks worth Rs 134 cr but net sold index futures and stock futures worth Rs 316 cr and 1204 cr respectively. DIIs were net sellers to the tune of Rs 489 cr.

Rupee depreciated 44 paise to end at 70.14/$.

For the week, Sensex and Nifty fell 0.6% and 0.5% respectively.

GST Council, on Friday, cut rates for 23 items including movie ticket, used tyres, monitor and TV screens.

OUTLOOK

Today morning, Nikkei and Hang Seng are down more than a percent while Shanghai is off 0.3%. SGX Nifty is suggesting about 20 points lower start for our market.

In Friday's report we had reiterated the view that 10850 was the immediate support, a breach of which would trigger a "sell" on the hourly chart and hence had advised a stop-loss of 10850 for long positions.

Nifty broke 10850 support in the morning session and plunged all the way to 10738 before closing at 10754 and is set to open around Friday's low today.

34-DMA, placed around 10700, is the immediate important support to eye. Below 10700, 10660 and 10580, the 50% and 61.8% retracement levels of the recent 10330-10985 upmove, would be the next supports to eye.

Immediate hurdle on the hourly chart is placed around 10890, with the stop-loss of which, trading shorts can be held on to.

10850 CONTINUES TO BE IMMEDIATE SUPPORT; 11090 ABOVE 10985

10850 CONTINUES TO BE IMMEDIATE SUPPORT; 11090 ABOVE 10985

WORLD MARKETS

Dow nosedived 2% while S & P 500 and Nasdaq fell 1.6% each on continued jitters over Fed policy statement, government shutdown fears and concerns over US-China relations. The Dow and Nasdaq posted their lowest closes since October 2017, while the S&P 500 finished at its lowest level since September 2017.

On Wednesday, the Fed's statement and Chairman Jerome Powell's subsequent press conference did not suggest that the central bank would slow its pace of rate hikes as quickly as some had hoped. Fed's decision to allow its balance sheet to run off at its current pace also continued to weigh on the sentiment.

House Speaker Paul Ryan announced that Trump would not sign the temporary funding bill without funding for the US-Mexico wall. Following the announcement, more political turmoil in the White House ensued when Defense Secretary James Mattis resigned from his post over disagreements with Trump.

Also weighing on sentiment, the Trump administration and more than a dozen international allies condemned Beijing for what the coalition views as continued efforts by the Chinese to steal other countries' trade secrets. Also, the U.S. Department of Justice charged two Chinese nationals yesterday for participating in a global hacking campaign. Prosecutors also accused the two of operating in conjunction with the Chinese government.

US crude tumbled $2.29 or 4.8% to 17-month low of $45.88 and Brent fell $2.89 or 5.05% to $54.35 a barrel as concerns surrounding oversupply and the outlook for the market's demand weighed.

European markets fell 0.8%-2%. The Bank of England (BOE) held interest rates steady.

AT HOME

After falling about eight tenth of a percent in the initial trade, benchmark indices recouped most of the losses through the session to end just marginally lower, breaking seven-day winning streak. Sensex settled at 36431, down 52 points while Nifty lost 15 points to finish at 10951. BSE mid-cap and small-cap indices ended higher by 0.1% each. BSE Telecom and Metal indices tumbled 1.2% and 1.1% respectively, becoming top losers among the sectoral indices while Capital Goods and Industrial indices were the top gainers, up 0.6% and 0.4% respectively.

FIIs net sold stocks and stock futures worth Rs 386 cr and 552 cr respectively but net bought index futures worth Rs 300 cr. DIIs were net buyers to the tune of Rs 88 cr.

Rupee appreciated 70 paise to end at 69.70/$.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.5%-1% and SGX Nifty is suggesting about 30 points lower start for our market.

In yesterday's report we had said that 10985, the top made Wednesday, was the immediate hurdle above which 11090 would be the next target and had asked trailing stop-loss in long positions to 10850.

Nifty, after touching a low of 10880, rebounded to end at 10951 and is set to open modestly lower today.

10985, the top made Wednesday, continues to be immediate hurdle above which, 11090, the 61.8% retracement level of the entire 11760-10004 fall, would be the next target/resistance to eye.

10850 continues to be immediate support, with the stop-loss of which, trading longs can be held on to.

LESS DOVISH FED SPARKS SELL-OFF ON WALL STREET; TRAIL STOP-LOSS TO 10850

LESS DOVISH FED SPARKS SELL-OFF ON WALL STREET; TRAIL STOP-LOSS TO 10850

WORLD MARKETS

Dow and S & P 500 fell 1.5% each while Nasdaq tumbled 2.2% to hit fresh 2018 lows after digesting interest rate hike and comments from the Federal Reserve.

Fed raised its benchmark interest rate by a quarter point to a target range between 2.25 to 2.5%, in a widely anticipated move. The move marked the fourth increase this year and the ninth since Fed began normalizing rates in December 2015. The Fed did however trim its 2019 outlook for rate hikes to just two increases from three previously.

However, the language in the post-meeting statement was also not entirely dovish, or easy on its outlook for rates. The committee continued to include a statement that more rate hikes would be appropriate, though it did soften the tone a bit. Markets took a leg lower during Powell's comments that the central bank would continue to reduce the size of its balance sheet at the current pace.

The benchmark 10-year Treasury note yield hit a fresh low of 2.798%, its lowest level since May 30. The 30-year Treasury bond broke below 3%.

US oil rose 96 cents or 2.1% to $47.20 after U.S. data showed strong demand for refined products.  Brent crude oil settled 98 cents, or 1.7%, higher at $57.24 a barrel.

European markets gained 0.2%-1.6% after Italy and the European Union reached a breakthrough on former's 2019 budget plans. Britain's inflation rate fell to a 20-month low in November.

AT HOME

Sensex and Nifty gained 0.4% and 0.5% respectively, extending the winning streak to seventh straight day. Sensex settled at 36484, up 137 points while Nifty added 58 points to finish at 10967. BSE mid-cap and small-cap indices climbed 1.5% and 1.1% respectively. Except 1.1% and 0.7% lower IT and Teck indices respectively, all the BSE sectoral indices ended in green with Realty index leading the tally, up 3.1%, followed by 1.9% higher Telecom index.

FIIs net bought stocks and index futures worth Rs 1209 cr and 502 cr respectively but net sold stock futures worth Rs 71 cr. DIIs were net sellers to the tune of Rs 481 cr.

Rupee appreciated 4 paise to end at 70.40/$.

OUTLOOK

Today morning, Nikkei is down 0.9% while Hang Seng and Shanghai are off a fourth of a percent each. SGX Nifty is suggesting about 90 points lower start for our market.

After Nifty achieved 10941 target, we had given next target of 11090, which is the 61.8% retracement level of the entire 11760-10004 fall.

Nifty, after touching a high of 10985, closed at 10967 but is set to open below 10900 today.

10850 is the immediate support, a breach of which will confirm a sell on the hourly chart and would pave the way for further fall.

10985, the top made yesterday, is now the immediate hurdle, upon crossover of which, 11090, as mentioned above, would be the next upside target to eye.

Traders are advised to keep stop-loss of 10850 in long positions.

NIFTY SET TO ACHIEVE 10941 TARGET; TRAIL STOP-LOSS TO 10800

NIFTY SET TO ACHIEVE 10941 TARGET; TRAIL STOP-LOSS TO 10800

WORLD MARKETS

S & P 500 ended flat while Dow and Nasdaq gained 0.4% each but ended off-the day high on growing fears of a government shutdown, a slide in oil prices and uncertainty over Fed policy.

Government shutdown fears were renewed after Senate Majority Lead Mitch McConnell said that a proposed government funding plan was rejected by his Democrat colleagues.

US crude plunged $3.64 or 7.3% to $46.24 a barrel, the lowest settle since August 2017, as the United States and Russia continue to pump at record levels while signs of faltering demand are emerging. Brent fell $3.35 or 5.6% to $56.26.

President Trump took aim at the Fed again yesterday, urging central bank members to not "let the market become any more illiquid than it already is.

European markets fell 0.3%-1.1%. Germany's Ifo business sentiment index dropped to 101.0 in December, down from 102.0 in November.

AT HOME

After falling more than half a percent in first hour, benchmark indices recouped all the losses to end higher by a fifth of a percent, extending the winning streak to sixth consecutive day. Sensex settled at 36347, up 77 points while Nifty added 20 points to finish at 10908. BSE mid-cap and small-cap indices gained 0.2% and 0.4% respectively.  BSE Capital Goods and Power indices gained 1.1% each, becoming top gainers among the sectoral indices while IT and Teck indices were the top losers, down 1.1% each.

FIIs net bought stocks worth Rs 145 cr but net sold index futures and stock futures worth Rs 951 cr and 260 cr respectively. DIIs were net sellers to the tune of Rs 183 cr.

Rupee appreciated 110 paise to end at 70.44/$.

Shares of Zee Entertainment plunged after brokerage firms revised ratings and price target on growth concerns and enhanced competition.

OUTLOOK

Today morning, Asian markets are trading flat to modestly higher and SGX Nifty is suggesting about 50 points higher start for our market.

At the risk of repeating, we had turned our view positive after Nifty took out the immediate hurdle of 10600 and have been asking holding on to long positions with a trailing stop-loss. In yesterday's report we had said that "10941, the top made in early December, continues to be immediate target as well as resistance to eye. Once that is taken out decisively, 11090, the 61.8% retracement level of the entire 11760-10004 fall, would be the next level to eye."

Nifty yesterday closed at 10908 and a higher start today will see it achieving 10941 target. Upon decisive crossover of 10941, 11090, as mentioned above, would be the next target/resistance to eye.

Immediate support on the hourly chart has moved up to 10800, with the stop-loss of which, trading longs can be held on to.

The Fed is widely expected to hike its benchmark overnight lending rate for a fourth and final time of 2018 when it concludes a two-day policy meeting today. Markets will particularly scrutinize — and react to — the Fed's outlook for 2019.

NIFTY NEARS 10941 TARGET; TRAIL STOP-LOSS TO 10735

NIFTY NEARS 10941 TARGET; TRAIL STOP-LOSS TO 10735

WORLD MARKETS

US indices nosedived 2.1%-2.3% ahead of the Federal Reserve Bank's anticipated rate hike on Wednesday amidst continued concerns over global growth.

The Fed is widely expected to hike its benchmark overnight lending rate for a fourth and final time of 2018 on Wednesday. Concerns of rising interest rates have heightened over the past month as inflation and growth expectations recede.

U.S. President Trump took aim at the Fed again yesterday, saying in a tweet that "it is incredible" that the central bank was "even considering yet another interest rate hike" amid the "outside world blowing up around us."

Homebuilder sentiment fell to its lowest level since May 2015 in December as potential buyers delay purchasing new homes despite a pullback in mortgage rates in the past month. New York manufacturers reported that business activity is still expanding, but growth slower much more than expected in December.

US crude fell 2.6% to 14-month low of $49.88 a barrel. Brent fell 1.1% to $59.61.

European markets fell 0.8%-1.2%.

AT HOME

Benchmark indices climbed 0.8% each on the first day of the brand new week to extend the winning streak to fifth straight day. Sesnex settled at 36270, up 307 points while Nifty added 82 points to finish at 10888. BSE mid-cap and small-cap indices gained 0.4% and 0.3% respectively. BSE Metal and Energy indices were the top gainers among the sectoral indices, putting on 2% and 1.5% respectively whereas IT index fell 0.4%, becoming top loser, followed by 0.3% lower Realty Consumer durable and Telecom indices.

FIIs net sold stocks and index futures worth Rs 61 cr and 319 cr respectively but net bought stock futures worth Rs 6 cr. DIIs were net sellers to the tune of Rs 77 cr.

Rupee appreciated 35 paise to end at 71.55/$.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.7%-1.5% and SGX Nifty is suggesting about 15 points lower start for our market.

Readers would recall that we had turned our view positive after Nifty crossed immediate hurdle of 10600 last week and had given upside targets of 10740 followed by 10833 and 10941.

Nifty yesterday touched a high of 10900 before closing at 10888 and is set to open marginally lower today.

10941, the top made in early December, continues to be immediate target as well as resistance to eye. Once that is taken out decisively, 11090, the 61.8% retracement level of the entire 11760-10004 fall, would be the next level to eye.

Immediate support on the hourly chart has moved up to 10735, with the stop-loss of which, trading longs can be held on to.

10941 CONTINUES TO BE NEXT UPSIDE TARGET; TRAIL STOP-LOSS TO 10660

10941 CONTINUES TO BE NEXT UPSIDE TARGET; TRAIL STOP-LOSS TO 10660

WORLD MARKETS

US indices nosedived 1.9%-2.3% after weaker-than-expected data in China and Europe exacerbated concerns of a global economic slowdown. Dow ended at its lowest since early May while S & P 500 fell to the lowest level since April.

China reported industrial output and retail sales growth numbers for November that missed expectations. Industrial output in November grew 5.4% from a year ago — the slowest pace in almost three years. Retail sales rose 8.1% in November — the weakest pace since 2003.

The IHS Markit Flash Eurozone PMI index fell to 51.7 in December, its lowest level in four years.

US oil fell 2.6% to $51.20 and Brent tumbled 2.2% to $60.12 a barrel, weighed down by a falling U.S. stock market and weak economic data from China.

European markets fell 0.4%-0.9%.

For the week, US indices fell 0.8%-1.3%, extending the losing streak to second consecutive week.  Main European markets gained 0.7%-1%.  In Asia, Nikkei and Shanghai fell 1.4% and 0.5% respectively but Hang Seng ended 0.1% higher.

The Bank of International Settlements (BIS), an umbrella group for the world’s central banks, said on Sunday that recent market tensions are a sign of more turmoil to come. It warned that a normalization of monetary policy is likely to trigger a flurry of sharp sell-offs in the near future.

AT HOME

It was a day of consolidation as benchmark indices ended marginally higher after trading in a narrow range through the session. Sensex settled at 35962, up 33 points while Nifty added 14 points to finish at 10805. BSE mid-cap and small-cap indices gained 0.2% and 0.03% respectively. BSE Telecom and Oil & Gas indices soared 3.1% and 1.7% respectively, becoming top gainers among the sectoral indices while Healthcare and Capital Goods indices were the top losers, down 0.8% and 0.7% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 862 cr, 249 cr and 357 cr respectively. DIIs were net sellers to the tune of Rs 303 cr.

Rupee depreciated 3 paise to end at 71.89/$.

For the week, Sensex and Nifty gained 0.8% and 1% respectively.

India's November WPI inflation came in at 4.8% against 5.1% month-on-month.

November trade deficit narrowed to $16.67 billion, down from $17.13 billion in October. Export grew 0.8% y-o-y while imports grew at 4.3%.

OUTLOOK

Today morning, Nikkei is up 0.6% while Hang Seng and Shanghai are little changed. SGX Nifty is suggesting about 35 points higher start for our market.

Last week, after Nifty crossed the immediate hurdle of 10600, we had given upside targets of 10740 followed by 10833 and 10941.

Nifty, after touching a high of 10838, ended the week at 10805 and is set to open around 10840 today.

Above 10838, the top made Friday, 10941, the top made in early December, would be next upside target as well as hurdle to eye.

Immediate support, after today's higher start, would have moved up to 10660, with the stop-loss of which, trading longs can be held on to.