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.