10838 IS THE IMMEDIATE HURDLE; 10610 IMMEDIATE SUPPORT

10838 IS THE IMMEDIATE HURDLE; 10610 IMMEDIATE SUPPORT

WORLD MARKETS

Dow gained 0.3% while S & P 500 ended flat and Nasdaq fell 0.4% after digested new developments in the ongoing U.S.-China trade war.

On Wednesday, Reuters reported Chinese state-owned companies had bought more than 1.5 million tons of U.S. soybeans, marking first major U.S. soybean purchases in more than six months.

US crude rose 2.8% to $52.58 and Brent added $1.19 or 2% at $61.34 after data showed inventory declines in the United States and on expectation that the global oil market could have a deficit sooner than previously thought.

The European Central Bank said it's bringing to an end a crisis-era bond-buying program this month. Bond purchases by the ECB will fall from 15 billion euros ($17.04 billion) a month to zero by the end of December, but the central bank plans to spend cash from maturing bonds to purchase additional debt. The euro slipped after the ECB announcements.

In Europe, FTSE and DAX ended flat, CAC was down 0.3% while Italy and Spain gained 0.5% and 0.8% respectively.

AT HOME

Sensex and Nifty gained 0.4% and 0.5% respectively to extend winning streak to third straight day. Sensex added 151 points to settle at 35930 while Nifty finished at 10792, up 54 points. BSE mid-cap and small-cap indices climbed 0.8% and 0.6% respectively. BSE Consumer Durables and Capital Goods indices climbed 1.4% and 1.3% respectively, becoming top gainers among the sectoral indices while Metal and Telecom indices fell 0.6% and 0.4% respectively, becoming top losers.

FIIs net bought stocks and index futures worth Rs 675 cr and 2396 cr respectively but net sold stock futures worth Rs 96 cr. DIIs were net sellers to the tune of Rs 52 cr.

Rupee appreciated 33 paise to end at 71.68/$.

OUTLOOK

Today morning, Nikkei and Hang Seng are down 1.4% and 1.2% respectively while Shanghai is off 0.2%. SGX Nifty is suggesting about 50 points lower start for our market.

In yesterday's report we had said that 10821-10833, the gap created by a gap down opening on last Wednesday, 5th December, is the next resistance to eye.

Nifty, after touching a high of 10838, slipped to end at 10791 and is set to open around 10750 today.

10838, the top made yesterday, is the immediate hurdle, upon crossover of which, 10941, the top made in early December, would be the bigger resistance to eye.

Immediate support on the hourly chart is placed around 10610, with the stop-loss of which, trading longs can be held on to.