Friday, December 28, 2018

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.

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