10821-10833 IS THE NEXT RESISTANCE ZONE; 10600 IMMEDIATE SUPPORT

10821-10833 IS THE NEXT RESISTANCE ZONE; 10600 IMMEDIATE SUPPORT

WORLD MARKETS

After gaining nearly 2% in the first half, US indices gave away more than half of the gains in later half to end with gains of 0.5%-1%.

The Wall Street Journal reported China is working to increase access to foreign companies, a move aimed at smoothing U.S.-China trade relations. The plan would replace the country's Made in China 2025 initiative, which is a framework aimed at making China a leader in industries like clean-energy cars and robotics, and has been a point of contention in the tariff fight between Washington and Beijing.

US President Trump, on Tuesday said, talks between Washington and Beijing were ongoing and confirmed he would not raise tariffs on Chinese imports until he was sure about a comprehensive trade agreement.

US oil fell 50 cents or 1% to $51.15 a barrel and Brent fell 5 cents to $60.15.

European markets suged 1.1%-2.2%. U.K Prime Minister Theresa May won a crucial vote of confidence in her leadership. The pound rose about 1% on the news.

AT HOME

Extending Tuesday's mammoth pullback, Sensex and Nifty soared 1.8% each in today's trade. Sensex added 629 points to settle at 35779 while Nifty finished at 10737, up 188 points. BSE mid-cap and small-cap indices climbed 2.5% each. All the BSE sectoral indices ended in green with Realty and Auto indices leading the tally, up 4.1% and 3.6% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 1299 cr, 489 cr and 5 cr respectively. DIIs were net buyers to the tune of Rs 1121 cr.

Rupee depreciated 16 paise to end at 72.01/$.

Dr Reddy tumbled 4.4% after a U.S. appeals court temporarily prevented it from selling a generic version of Indivior Plc’s Suboxone opioid addiction treatment drug in its biggest market.

India's November CPI eased to a 17-month low of 2.3% in November from 3.31% in October. Core inflation stood at 5.8%, down from 6.2% in the previous month. October IIP surged 8.1%, the fastest pace in 11-months, as against 4.5% in September.

OUTLOOK

Today morning, Shanghai is flat while Hang Seng and Nikkei are up about half a percent each. SGX Nifty is suggesting about 50 points higher start for our market.

In yesterday's report we had said that 10560-10600 was the immediate resistance zone, above which, 10710-10740, which are the 61.8% and 67% retracement levels of the recent 10940-10333 fall, would be the next resistance zone to eye.

Nifty crossed 10600 hurdle in the initial trade and surged all the way to 10752 before closing at 10737 and is set to open above 10750 today.

10821-10833, the gap created by a gap down opening on last Wednesday, 5th December, is the next resistance to eye. If Nifty is able to take out this hurdle as well, 10941, the top made on 3rd December, would be the next major target as well as resistance to eye.

Immediate support on the hourly chart is placed around 10600, with the stop-loss of which, trading longs can be held on to.