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.