10490 IS THE NEXT TARGET; 10280 IMMEDIATE SUPPORT

10490 IS THE NEXT TARGET; 10280 IMMEDIATE SUPPORT

WORLD MARKETS                             

US indices gained 0.5%-0.8% as the tax reform bill moved closer to potentially becoming legislation.

The House is expected to vote today on the bill that would slash the federal corporate tax rate to 21% from 35%.

President Trump unveiled his national security strategy, which referred to Russia and China as "revisionist powers." It also noted that those countries were "determined to make economies less free and less fair."

European markets surged 0.6%-1.6%. Basic resources stocks gained the most following sharp gains in Nickel and lead prices.

AT HOME

Benchmark indices managed to end higher by about half a percent after an extremely volatile trade owing to assembly election results. Sensex ended 139 points higher at 33602 while Nifty added 55 points to finish at 10388. BSE mid-cap and small-cap indices gained 0.8% and 0.4% respectively. Except 0.1% and 0.3% lower Energy and Realty indices respectively, all the BSE sectoral indices ended in green with Metal and Auto indices leading the tally, up 1.8% and 1.2% respectively.

FIIs net sold stocks worth Rs 432 cr but net bought index futures and stock futures worth Rs 219 cr and 268 cr respectively. DIIs were net buyers to the tune of Rs 1077 cr.

Rupee depreciated 18 paise to end at 64.23/$.

BJP won 99 out of 182 assembly seats in Gujarat election which is a loss of 16 seats compared to 2012 tally. Congress got 77, 16 higher than last time. However the vote share rose to 49.1% from 48.3%, which is highest since 2002. Also the seat loss is in rural areas rather than urban, which has raised expectation that the forthcoming budget would be more agri and rural focused.

In the 68 seat Himachal Pradesh assembly, BJP and Congress won 44 and 21 seats respectively.

OUTLOOK

Today morning, Asian markets are trading with gains of upto 0.4% and SGX Nifty is suggesting a marginally higher start for our market.

In yesterday's report we had mentioned that a crossover of 10373 would confirm a "Buy" on the hourly chart and in that case 10490, the top made in early November, would be the next target to eye.

Nifty, after touching a low 10075 in the initial trade, rebounded, crossed the 10373 hurdle and went all the way to 10443 before closing at 10388.

10490 continues to be upside target as well as resistance to eye. Immediate support on the hourly chart is placed at 10280, with the stop-loss of which, trading longs should be held on to.

ALL EYES ON ELECTION RESULTS

ALL EYES ON ELECTION RESULTS

WORLD MARKETS                             

US indices climbed 0.6%-1.2% on Friday as expectations of a Republican tax bill passing increased.

Reports suggested that Republicans had agreed to extend the child tax credit and that Republican Sen. Marco Rubio will support the tax bill after the tweaks. Bob Corker, a Republican senator from Tenessee who originally opposed the bill, said he would vote in favor of the measure.

In Europe, FTSE and DAX gained 0.6% and 0.3% respectively while CAC and Italy fell 0.2% and 0.4% respectively. Euro zone trade balance numbers came in lower than expected with exports dropping 2.4% in October.

For the week, US indices gained 0.9%-1.4%. In Europe, FTSE gained 1.3% but DAX and CAC lost 0.4% and 0.9% respectively. In Asia, Nikkei and Shanghai fell 0.7% and 1.1% respectively while Hang Seng rose 0.7%.

Later on Friday, Republicans unveiled their final tax plan as two holdout GOP senators indicated they would support the tax bill after compromises were made. Among the provisions that made the cut was a reduction in the corporate tax rate from the existing 35 percent to 21 percent, with effect from 2018. Republicans intend to pass the measures by the middle of this week.

AT HOME

After a gap up opening, Sensex and Nifty traded in a narrow range through the session and finally ended higher by 0.6% and 0.8% respectively. Senex added 216 points to settle at 33463 while Nifty finished at 10333, up 81 points. BSE mid-cap and small-cap indices climbed 1% and 1.4% respectively. Except a half a percent lower Telecom index, all the BSE sectoral indices ended in green with Metal and Realty indices leading the tally, up 2.8% and 2% respectively.

FIIs net sold stocks and index futures worth Rs 921 cr and 90 cr respectively but net bought stock futures worth Rs 631 cr. DIIs were net buyers to the tune of Rs 635 cr.

Rupee appreciated 20 paise to end at 3-month high of 64.05/$.

For the week, Sensex and Nifty gained 0.6% and 0.7% respectively, extending the winning streak to second consecutive week.

The Union Cabinet approved a Rs 2,600 crore special package for the leather and footwear sector, which the government believes has the potential to generate 3.24 lakh jobs in three years.

India's trade deficit in November narrowed to USD 13.83 billion from USD 14.02 billion in October. Exports rose 30.6% to USD 26.20 bn while imports rose 19.6% to USD 40.02 bn.

Ferrying goods across states may get quicker as the GST Council on Saturday decided to make rollout of all India electronic-way bill compulsory from February 1, two months ahead of the earlier plan.

OUTLOOK

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

All eyes would be on the Gujarat and Himachal Pradesh assembly election results, counting for which begins at 8 AM today.

Exit polls showed anywhere between 99-135 seats for BJP. Markets would be ok with 110-120 seats. A figure below 100 will be taken negatively while a number close to 135 would be positive.

Technically, in Friday's report we had mentioned that traders can initiate longs once the top made in the first hour is taken out. Nifty, after making a high of 10373 in first hour, treaded below that through rest of the session and finally ended at 10333.

A higher start would take it close to Friday's high. A crossover of 10373 would confirm a "buy" on the hourly chart and would pave the way for further upmove. 10490, the top made in early November, would be the next upside target if that happens. 10260 is the immediate support on the hourly chart with the stop-loss of which long positions can be initiated once 10373 is taken out.

NIFTY SET TO TEST 10330 HURDLE

NIFTY SET TO TEST 10330 HURDLE

WORLD MARKETS                             

US indices fell 0.3%-0.4%, with the Dow snapping a five-day winning streak, on uncertainty over tax reforms as two GOP Senators raised some concerns about the tax bill.

Weekly jobless claims totaled 225,000, well below an estimate of 239,000. Retail sales rose 0.8% in November versus an estimated increase of 0.3%.

The European Central Bank kept monetary policy steady, but upgraded its growth forecast for the region from 2.2% to 2.4% this year.

The Bank of England also kept its policy unchanged.

European markets fell 0.4%-0.9%.

AT HOME

After falling about half a percent in the morning session, benchmark indices surged more than a percent from the bottom of the day in noon trade to end higher by six tenth of a percent. Sensex settled at 33247, up 194 points while Nifty added 59 points to finish at 10252. Broader market however underperformed as BSE mid-cap index gained just 0.1% while small-cap index lost 0.3%. BSE Oil & Gas and Telecom indices gained the most among sectoral indices, rising 1% and 0.7% respectively whereas Consumer Durable index fell 0.6%, becoming top loser, followed by 0.04% lower Industrial and IT indices.

FIIs net bought stocks and stock futures worth Rs 232 cr and 611 cr respectively but net sold index futures worth Rs 661 cr. DIIs were net sellers to the tune of Rs 374 cr.

Rupee appreciated 9 paise to end at 64.34/$.

All the exit polls released yesterday predicted a clear BJP majority in both Himachal Pradesh and Gujarat. In Gujarat, various polls predict 99-135 seats for BJP.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.4%-0.8% but SGX Nifty is suggesting nearly 80 point higher start for our market.

After today's big gap up opening, Nifty would be very close to 10330 hurdle, which is the top made on Monday and where a downward sloping trendline adjoining tops made in November is placed. A decisive crossover of 10330 would also confirm a higher-top higher-bottom formation on the daily chart and would pave the way for further upmove. 10410 and 10490, the tops made in November, would be next upside targets in that case.

Meanwhile, traders can initiate longs once the top made in the first hour is taken out keeping a stop-loss of 10250, which is the immediate support on the hourly chart.

NIFTY HOLDS 10170 SUPPORT; 10330 IS THE IMMEDIATE HURDLE

NIFTY HOLDS 10170 SUPPORT; 10330 IS THE IMMEDIATE HURDLE

WORLD MARKETS                             

Dow and Nasdaq gained 0.3% and 0.2% respectively while S & P 500 ended marginally in the red after the Federal Reserve raised interest rates for the third time this year.

The Fed raised interest rates by a quarter point that increased the central bank's target range to between 1.25% and 1.5%. Also it raised its 2018 GDP forecast from 2.1% to 2.5%. Its inflation forecast was raised from 1.6% to 1.7%.  Interest-rate forecasts for 2018 and 2019 were kept unchanged.

Treasury yields and dollar fell following the Fed's announcement. The benchmark 10-year yield traded at 2.348%, while the two-year yield slipped to 1.782%.

The consumer price index rose 0.4% last month, as expected. Excluding food and energy, consumer prices rose 0.1%.

Meanwhile, House and Senate Republicans came to a tentative agreement on their tax plan.

European markets saw cuts of 0.1%-1.4% with Italy leading the losses.

AT HOME

After rising about half a percent in the morning, benchmark indices nosedived a percent from the top of the day in late noon trade to end lower by half a percent, extending the losing streak to second straight day. Sensex settled at 33053, down 175 points while Nifty lost 47 points to finish at 10193. BSE mid-cap and small-cap indices fell 0.8% each. Except 0.5% and 0.2% higher Oil & Gas and Energy indices respectively, all the BSE sectoral indices ended in red with Realty and Metal indices leading the tally, down 2.3% and 1.7% respectively.

FIIs net sold stocks worth Rs 579 cr but net bought index futures and stock futures worth Rs 767 cr and 131 cr respectively. DIIs were net sellers to the tune of Rs 116 cr.

Rupee depreciated 4 paise to end at 64.44/$.

OUTLOOK

Today morning, Nikkei is marginally in the red but Hang Seng and Shanghai are up 0.4% and 0.7% respectively. SGX Nifty is suggesting about 60 points higher start for our market.

In yesterday's report we had reiterated the view that 10170 continues to be immediate support a breach of which will generate a sell on the hourly chart and would pave the way for further correction.

Nifty touched a low of exactly 10170 and closed at 10193 and is set to open higher today.

10170 CONTINUES TO BE IMMEDIATE SUPPORT; 10330 HURDLE

10170 CONTINUES TO BE IMMEDIATE SUPPORT; 10330 HURDLE

WORLD MARKETS                             

Dow and S & P 500 gained 0.5% and 0.2% respectively while Nasdaq fell 0.2% amid growing optimism that Republican lawmakers would be able to revamp the corporate tax system.

Brent crude fell 2% to $63.34 and US crude lost 1.4% to $56.91 after the U.S. Energy Information Administration said it expects U.S. oil production to rise sharply next year

European markets, except a 0.2% lower Spain, gained 0.2%-0.8%. The U.K. inflation rate hit a five-year-high of 3.1%.

AT HOME

Sensex and Nifty fell 0.7% and 0.8% respectively to break three-day winning streak. Sensex lost 228 points to settle at 33228 while Nifty finished at 10240, down 82 points. BSE mid-cap and small-cap indices fell 1% and 0.7% respectively. All the BSE sectoral indices ended in red with Telecom and Realty indices leading the tally, down 2.1% and 1.6% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 843 cr, 266 cr and 382 cr respectively. DIIs were net sellers to the tune of Rs 854 cr.

Rupee depreciated 4 paise to end at 64.40/$.

India's retail inflation grew at 4.88%, the fastest pace in 15-months, in November. In October, the figure was 3.58%. Core inflation rose to 4.86% from 4.6%.

India's factory output growth slowed to 2.2% in October as compared with 3.8% a month ago.

OUTLOOK

Today morning, Asian markets are trading flat to modestly lower and SGX Nifty is suggesting about 20 points lower start for our market.

After Nifty crossed the 34-DMA hurdle of 10285, we were working with next target of 10360, where the downward sloping trendline adjoining tops made in November was placed.

Nifty, after touching a high of 10326 in the initial trade, slipped to end at 10240 and is set to open lower today.

10170 continues to be immediate support on the hourly chart, a breach of which will confirm a sell on the hourly chart and would pave the way for further correction.

On the upside, 10330, the top made on Monday, is now the immediate hurdle above which 10410, the top made in late November, would be the tougher resistance to eye.

Traders are advised to keep stop-loss of 10170 in long positions.

Federal Reserve, at the end of its two-day meeting today, is expected to raise interest rate by a quarter point. Also, in light of potential changes to the US tax system, the Fed may be forced to increase its economic and interest-rate outlooks.

NIFTY ACHIEVES 10285 TARGET; 10360 NEXT

NIFTY ACHIEVES 10285 TARGET; 10360 NEXT

WORLD MARKETS                             

US indices, led by energy and tech stocks, gained 0.2%-0.5%, shrugging off a terror incident ahead of Wednesday's US Fed decision.

Brent crude rose 2% to $64.69 and WTI settled 1% higher at $57.99 to reach their highest levels in more than two years on news that Britain's Forties Pipeline would be shut.

European markets, except a 0.8% higher FTSE, ended with cuts of 0.1%-0.4%.

AT HOME

Benchmark indices gained about six tenth of a percent in today's trade to extend winning streak to third straight day. Sensex gained 205 points to settle at 33456 while Nifty finished at 10322, up 57 points. BSE mid-cap and small-cap indices gained 0.4% and 0.2% respectively. BSE IT and Teck indices climbed 1% and 0.9% respectively to become top gainers among sectoral indices while Oil & Gas and Energy indices were the top losers, down 0.2% each.

FIIs net sold stocks worth Rs 186 cr but net bought index futures and stock futures worth Rs 110 cr and 54 cr respectively. DIIs were net buyers to the tune of Rs 109 cr.

Rupee appreciated 9 paise to end at 64.36/$.

OUTLOOK

Today, Asian markets are trading little changed and SGX Nifty is suggesting a flattish start for our market.

Readers would recall that after Nifty took out the immediate hurdle of 10160, we had given upside targets of 10285 followed by 10370. Nifty yesterday climbed 57 points to settle at 10322, achieving the first target and moving towards the second.

10360, where a trendline adjoining tops made in November is placed, continue to be next target as well as resistance to eye.

Immediate support on the hourly chart has moved up to 10170, with the stop-loss of which, trading longs should be held on to.

CPI for November and IIP for October will be released today. CPI is expected to inch up to 4.20% from October's 3.58% level. IIP is expected to ease to 3% from previous month's 3.8% level.

Fed begins its two-day meeting today. Markets are expecting an interest rate hike and will watch out for FOMC members' views on the outlook for the U.S. economy.

NIFTY SET TO ACHIEVE 10285 TARGET; 10140 IS THE IMMEDIATE SUPPORT

NIFTY SET TO ACHIEVE 10285 TARGET; 10140 IS THE IMMEDIATE SUPPORT

WORLD MARKETS                             

US indices gained 0.4%-0.6% with the Dow and S & P 500 closing at fresh record high after the release of a stronger-than-expected jobs report.

The U.S. economy added 228,000 jobs last month, the expected figure being 200,000. The unemployment rate held steady at 4.1%. Average hourly earnings rose 0.2% for November and 2.5% for the year.

European markets gained 0.3%-1.4%, reacting to progress in Brexit negotiations and a long-sought deal regarding global banking regulations.

For the week, Dow and S & P 500 gained 0.4% each but Nasdaq fell 0.1%. European markets gained 1.3%-2.6%. In Asia, Shanghai and Hang Seng fell 0.8% and 1.5% respectively while Nikkei was flat.

AT HOME

Benchmark indices soared nearly a percent, extending the winning streak to second straight day. Sensex climbed 301 points to settle at 33250 while Nifty finished at 10266, up 99 points. BSE mid-cap and small-cap indices rose 0.9% and 1% respectively. All the BSE sectoral indices ended in green with FMCG and Metal indices leading the tally, up 2.2% and 1.4% respectively.

FIIs net sold stocks and index futures worth Rs 675 cr and 745 cr respectively but net bought stock futures worth Rs 219 cr. DIIs were net buyers to the tune of Rs 1243 cr.

Rupee appreciated 11 paise to end at 64.46/$.

For the week, Sensex and Nifty gained 1.3% and 1.4% respectively.

66.75% voter turnout was recorded in the phase 1 of the Gujarat assembly elections held for 89 of the state's 182 constituencies. Next phase will be held on 14^th.

OUTLOOK

Today morning, Asian markets are trading flat to modestly higher and SGX Nifty is suggesting about 15 points higher start for our market.

After Nifty took out the immediate hurdle of 10160 on Thursday we had given the upside target of 10285 on Friday.

Nifty soared 99 points to settle at 10266 and is set to open higher today which will nearly achieve 10285 target.

10285 is the two-third retracement level of the recent 10410-10033 fall and 34-DMA is placed around 10290, making this and immediate resistance zone. Once 10290 is taken out, Nifty would move towards 10370 where a trendline adjoining recent tops on the daily chart presents a resistance.

Meanwhile, immediate support on the hourly chart has moved up to 10140, with the stop-loss of which, trading longs should be held on to.