10800 IS THE IMMEDIATE HURDLE; 10692 IMMEDIATE SUPPORT

10800 IS THE IMMEDIATE HURDLE; 10692 IMMEDIATE SUPPORT

WORLD MARKETS

US indices fell 0.4%-0.9% on concerns that corporate earnings growth might slow down and worries over an economic slowdown in China.

Official data from China showed imports fell 7.6% year-on-year in December, as against expectation of a 5% rise and exports unexpectedly dropped 4.4%, defying projections of a 3% gain. 

Fourth-quarter earnings season kicked off yesterday, with Citigroup reporting stronger-than-expected earnings.

US crude fell 2.1% to $50.51 and Brent eased 2.5% to $59 a barrel.

European markets fell 0.3%-0.9%.

AT HOME

After falling nearly a percent, benchmark indices recouped nearly half of the losses in noon trade to end lower by about half a percent, extending the losing streak to third straight day. Sensex fell 156 points to settle at 35853 while Nifty finished at 10737, down 57 points. BSE mid-cap and small-cap indices fell 0.5% and 0.4% respectively. BSE Capital Goods and Telecom indices tumbled 1.9% and 1.4% respectively, becoming top losers among the sectoral indices while Healthcare and IT indices were the top gainers, up 0.4% and 0.1% respectively.

FIIs net sold stocks and index futures worth Rs 732 cr and 990 cr respectively but net bought stock futures worth Rs 558 cr. DIIs were net buyers to the tune of Rs 527 cr.

Rupee depreciated 44 paise to end at 70.93/$.

India's wholesale price inflation, measured by WPI, eased to eight-month low of 3.8% in December, as compared to 4.64% in November, due to cheaper food and fuel prices.

Retail inflation hit an 18-month low, rising 2.19% in December as compared with 2.3% in November due to cheaper fuel and food items.

OUTLOOK

Today morning, Nikkei and Hang Seng are up about half a percent while Shanghai is flat. SGX Nifty is suggesting about 40 points higher start for our market.

In yesterday's report we had said that 10870, the top made last week, was the immediate hurdle while 10710, where an upward sloping trendline adjoining recent bottoms on the daily chart is placed, was the immediate support.

Nifty, after touching a low of 10692, rebounded to close at 10737 and is set to open above 10750 today.

10800 is the immediate hurdle on the hourly chart above which 10870, the top made last week, would be the bigger hurdle to eye.

10692, the low made yesterday, is the immediate support, a breach of which would confirm a "sell" on the hourly chart and would pave the way for further fall. 10600, in the vicinity of which an upward sloping trendline adjoining bottoms made in October and December is placed, would be the next support to eye if that happens.

ZEE Entertainment will report its quarterly earnings today.

Lawmakers in UK will today vote on U.K. Prime Minister Theresa May's Brexit deal to leave the European Union. The vote is widely expected to be defeated in parliament. That leaves the prospect of a complete collapse of government, a disorderly exit from the bloc or even the entire Brexit process being scrapped altogether over the coming weeks.