10810-10860 IS THE RESISTANCE ZONE; 10646 IMMEDIATE SUPPORT

10810-10860 IS THE RESISTANCE ZONE; 10646 IMMEDIATE SUPPORT

WORLD MARKETS

Nasdaq ended flat while Dow and S & P 500 rose 0.2% each after digesting minutes of the latest Fed meeting.

Minutes from the Fed's January meeting highlighted downside risks, including "the possibilities of a sharper-than-expected slowdown in global economic growth, particularly in China and Europe, a rapid waning of fiscal policy stimulus, or a further tightening of financial market conditions." The central bank did hint in the minutes that it may end its balance-sheet normalization this year.

Brent crude rose 63 cents, or 1%, to $67.08 a barrel while US crude rose 83 cents or 1.5% to $56.92 a barrel, hitting their highest this year.

European markets gained 0.4%-0.8%.

AT HOME

Benchmark indices soared nearly a percent and fifth, with Sensex and Nifty breaking nine day and eight day losing streak respectively. Sensex settled at 35756, up 403 points while Nifty added 131 points to finish at 10735. BSE Mid-cap and small-cap indices rose 0.9% and 0.8% respectively.  All the BSE sectoral indices ended in green with Metal and Basic Materials indices leading the gains, up 3% and 2.2% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 713 cr, 746 cr and 266 cr respectively. DIIs were net buyers to the tune of Rs 113 cr.

Rupee appreciated 23 paise to end at 71.11/$.

Government yesterday approved a Rs 48239 cr capital infusion in 12 public sector banks to help them meet regulatory capital requirements and make growth capital available for the stronger lenders.

OUTLOOK

Today morning, Asian markets are trading with cuts of upto half a percent and SGX Nifty is suggesting about 20 points lower start for our market.

After Nifty achieved the downside target of 10583 on Tuesday, we had asked trailing the stop-loss in short positions to 10723 in yesterday's report.

Nifty yesterday soared to 10752 before closing at 10735, crossing this hurdle.

20, 34 and 200 DMAs, at present, are placed at 10810, 10820 and 10860 respectively, making 10810-10860 and important resistance zone.

10646, the low made yesterday, is the immediate support below which 10585, the low made on Tuesday, would be the crucial support to eye.