10285 ABOVE 10183; 10120 IS THE IMMEDIATE SUPPORT

10285 ABOVE 10183; 10120 IS THE IMMEDIATE SUPPORT

WORLD MARKETS                             

Dow and S & P 500 gained 0.3% each while Nasdaq rose 0.5%, looking to Washington for clues about tax reform and a possible government shutdown.

Material stocks perked up on news that President Donald Trump plans to unveil an infrastructure spending plan in 2018.

U.S. crude rose 1.3% to $56.69 per barrel and Brent gained 1.6% to settle at $62.20.

European markets, except a 0.4% lower FTSE, gained 0.2%-0.8%.

AT HOME

After a positive start benchmark indices saw a sustained northward move through the session to end with hefty gains of more than a percent with Sensex and Nifty registering biggest single day gain since 1st November and 25th May respectively. Sensex soared 352 points to settle at 32949 while Nifty finished at 10167, up 123 points. BSE mid-cap and small-cap indices climbed 1.4% and 1.3% respectively. All the BSE sectoral indices ended in green with Telecom and Utilities indices leading the tally, up 4.8% and 2.9% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 1076 cr, 914 cr and 342 cr respectively. DIIs were net buyers to the tune of Rs 927 cr.

Rupee depreciated 5 paise to end at 64.57/$.

OUTLOOK

Today morning, Shanghai is down 0.2% but Nikkei and Hang Seng are up 0.9% and 0.4% respectively. SGX Nifty is suggesting a flattish start for our market.

In yesterday's report we had said that having broken 10090 support, next support for Nifty is at 9950 and had advised trailing stop-loss in short positions to 10160.

Nifty soared 123 points to end at 10167, taking out the 10160 hurdle.

A crossover of 10183, the top made in last hour, would confirm a "buy" on the hourly chart and would pave the way for further upmove. 10285, the two-third retracement level of the recent 10403-10033 fall, which also coincides with 34-DMA, would the upside target as well as the resistance if that happens.

Traders can initiate long positions with the stop-loss of 10120, which is the immediate support on the hourly chart, once 10183 is crossed.

November jobs report to be released in the US is expected to show a gain of 200,000 jobs.

NIFTY BREAKS 10090 SUPPORT; 9950 NEXT

NIFTY BREAKS 10090 SUPPORT; 9950 NEXT

WORLD MARKETS                             

Dow lost 0.2%, S & P 500 ended flat while Nasdaq rose 0.2% yesterday as tech stocks rose on the back of gains in Facebook while energy stocks fell on falling crude.

U.S. Senate yesterday voted to go to a conference committee with the House to negotiate a plan to reform the tax system after both chambers passed separate bills earlier.

West Texas Intermediate crude fell 2.9% to $55.96 per barrel and Brent fell 2.6% to $61.22 after data showed a larger-than-expected increase in U.S. gasoline stocks.

U.S. private payrolls rose 190,000 in November, above the 185,000 forecast by economists in a Reuters poll, but below the 235,000 seen in October.

Markets also looked ahead to a potential government shutdown. If Congress fails to craft a deal on government spending by the end of the week, the federal government could close until a deal is struck.

Dollar index rose about 0.25% to 93.52, the highest level in more than two-weeks.

In Europe, except a 0.3% higher FTSE, other markets fell upto half a percent.

AT HOME

Benchmark indices tumbled nearly two-third of a percent with Sensex and Nifty closing at the lowest level since 23rd October and 11th October respectively. Sensex lost 205 points to settle at 32597 while Nifty finished at 10044, down 74 points. BSE mid-cap and small-cap indices lost 0.9% and 0.7% respectively. BSE Metal index nosedived 2%, becoming top loser among the sectoral indices, followed by 1.4% lower Telecom and Basic Material indices. Energy and IT indices were top gainers, up 0.5% and 0.3% respectively.

FIIs net sold stocks and index futures worth Rs 1218 cr and 446 cr respectively but net bought stock futures worth Rs 518 cr. DIIs were net buyers to the tune of Rs 995 cr.

Rupee depreciated 14 paise to end at 64.52/$.

RBI's monetary policy committee kept repo rate unchanged at 6% and maintained it's neutral stance but upped the retail inflation forecast for the second half of FY18 to 4.3%-4.7% from the earlier 4.2-4.6%. It retained FY18 growth forecast at 6.7%.

OUTLOOK

Today morning, Shanghai is down 0.3% but Nikkei and Hang Seng are up 1.2% and 0.5% respectively. SGX Nifty is suggesting a marginally higher start for our market.

Nifty yesterday lost 74 points to close at 10044, breaking the 10090 support decisively. Next support, as we have been mentioning, is placed at 9950, which is the two-third retracement level of the entire 9690-10490 upmove.

Immediate resistance on the hourly chart has moved lower to 10160, with the stop-loss of which trading shorts should be held on to.

NIFTY HOLDS 10090 ON CLOSING BASIS; RBI IN FOCUS

NIFTY HOLDS 10090 ON CLOSING BASIS; RBI IN FOCUS

WORLD MARKETS                             

US indices fell 0.2%-0.4% with the S&P 500 posting its first three-day losing streak since August.

Brent crude rose 0.7% or 45 cents to $62.90 a barrel and WTI rose 0.3% or 15 cents to $57.62.

Main European markets fell 0.1%-0.3% while Italy gained 0.2%. Basic resources stocks led the losses amid heavy falls in metals markets. The euro zone composite PMI surged to 57.5, up from 56.0 in October. That's the highest monthly reading in more than 6.5 years.

In the latest talks between the U.K. and the European Union, both sides failed to agree upon the terms for the U.K. leaving the political-economic bloc on Monday.

AT HOME

Benchmark indices ended marginally lower after a choppy trade. Sensex settled at 32802, down 67 points while Nifty lost 10 points to finish at 10118. BSE mid-cap index gained 0.4% while the small-cap index ended marginally in the red. BSE Power and Utilities indices fell 1.1% and 0.8% respectively, becoming top losers among sectoral indices while Telecom and Energy indices were the top gainers, up 0.8% and 0.6% respectively.

FIIs net sold stocks and index futures worth Rs 1471 cr and 1979 cr respectively but net bought stock futures worth Rs 278 cr. DIIs were net buyers to the tune of Rs 1074 cr.

Rupee ended flat at 64.38/$.

India's November Nikkei/IHS Markit Services Purchasing Managers' Index fell to 48.5 - its lowest since August - from 51.7 in October, well below the 50 mark that separates expansion from contraction.

The government yesterday announced incentives worth a total Rs 8,450 crore to boost exports and employment in labour-intensive sectors in the mid-term review of the five-year foreign trade policy (FTP) that was rolled out in 2015.

OUTLOOK

Today morning, Hang Seng is flat but Nikkei and Shanghai are down 0.8% and 0.4% respectively. SGX Nifty is suggesting about 20 points lower start for our market.

In yesterday's report we had reiterated the view that upon decisive breach of 10090, which is the 50% retracement level of the 9690-10490 upmove, the next downside target would be 9950, the two-third retracement level of the aforementioned upmove.

Nifty, after touching a low of 10069 in first half an hour, rebounded to end at 10118, holding on to 10090 support on closing basis.

10090 continues to be immediate support, upon decisive breach of which 9950 would be the next target to eye.

Immediate resistance on the hourly chart has moved lower to 10260, a crossover of which is required for taking a positive view on Nifty.

RBI's Monetary Policy Committee, at the end of its two-day meeting, is expected to leave policy rates unchanged. Markets would watch out for cues to future policy direction.

10090-10300 CONTINUES TO BE IMMEDIATE RANGE

10090-10300 CONTINUES TO BE IMMEDIATE RANGE

WORLD MARKETS                             

Dow gained 0.2% but S & P 500 fell 0.1% and Nasdaq tumbled 1% as technology stocks fell.

WTI crude fell 88 cents or 1.5% to $57.48 and Brent slipped $1.30 or 2% to $62.43 on signs of rising US production.

European markets climbed 0.5%-1.5%. the meeting between British Prime Minister Theresa May and European Commission President Jean-Claude Juncker failed to yield an agreement on the terms for Brexit between the U.K. and the European Union.

AT HOME

Benchmark indices ended marginally higher after a rangebound but choppy trade, breaking four-day losing streak. Sensex settled at 32870, up 37 points while Nifty added 6 points to finish at 10128. BSE mid-cap and small-cap indices however lost 0.1% and 0.5% respectively. BSE IT and Teck indices climbed 1.4% and 1.1% respectively, becoming top gainers among sectoral indices while Telecom and Energy indices were the top losers, down 0.7% and 0.5% respectively.

FIIs net sold stocks worth Rs 334 cr but net bought index futures and stock futures worth Rs 150 cr and 149 cr respectively. DIIs were net buyers to the tune of Rs 776 cr.

Rupee appreciated 9 paise to end at 64.37/$.

OUTLOOK

Today morning, Shanghai is marginally in the green while Hang Seng and Shanghai are down 0.1% and 0.6% respectively. SGX Nifty is suggesting about 25 points lower start for our market.

After today's gap down opening, Nifty would be back in the vicinity of 10090 support, which is the 50% retracement level of the entire 9687-10490 upmove and also the bottom made in mid-November.

9950, the two-third retracement level of the aforementioned upmove, would be the next downside target if 10090 gives way.

10300 continues to be immediate hurdle, a crossover of which is required for taking a positive view on Nifty.

NIFTY NEARLY ACHIEVES 10094 TARGET; 10300 IS THE IMMEDIATE HURDLE

NIFTY NEARLY ACHIEVES 10094 TARGET; 10300 IS THE IMMEDIATE HURDLE

WORLD MARKETS                             

Dow and S & P 500 fell 0.2% each while Nasdaq lost 0.4% on Friday after media reports suggested that Flynn, the former national security adviser, would testify that he was directed to make contact with Russians during the presidential campaign in 2016.

Stocks pared their losses after Senator Mitch McConnell told reporters that they had the votes to pass the Senate tax bill.

Gold and Treasurys spiked higher following the news as investors fled to market safe havens.US crude rose 96 cents or 1.7% to $58.36 a barrel while Brent gained $1.04 or 1.7% to $63.67.

European markets fell 0.4%-1.2%.

For the week, while Dow and S & P 500 gained 2.9% and 1.5% respectively, Nasdaq fell 0.6%. European markets ended with cuts of nearly a percent and half. In Asia, Nikkei rose 1.2% but Hang Seng and Shanghai fell 2.6% and 1.1% respectively.

Senate Republicans were able to narrowly pass a bill to overhaul the U.S. tax system in the early hours of Saturday morning. The GOP still needs to overcome significant disagreements for the House and Senate to craft a joint bill and send it to Trump's desk. Republicans hope to reach a deal by Christmas.

AT HOME

Benchmark indices nosedived nearly a percent, extending the losing streak to fourth straight day and closing at the lowest leve since 15th November. Sensex lost 316 points to settle at 32833 while Nifty finished at 10122, down 105 points. BSE mid-cap and small-cap indices fell 1% and 1.2% respectively. All the BSE sectoral indices ended in red with Realty index leading the tally, down 2%, followed by 1.8% lower Utilities and Metal indices.

FIIs net bought stocks worth Rs 306 cr but net sold index futures and stock futures worth Rs 69 cr and 466 cr respectively. DIIs were net buyers to the tune of Rs 176 cr.

For the week, Sensex and Nifty lost 2.5% and 2.6% respectively.

India's November manufacturing PMI rose to a 13-month high of 52.6 from 50.3 in October.

Ashok Leyland posted 51% rise in November sales at 14460 units. Maruti reported 14.1% growth at 154000 units. Bajaj Auto reported 21% rise at 3.26 lakh units. M & M posted 18% growth in auto sales at 38570 units while tractor sales jumped 26% to 22754 units. Tata Motors sales were up 58% at 52464 units. Hero Motocorp sales rose 26% to 605270 units. TVS reported 12% growth.

OUTLOOK

Today morning, Asian markets are trading with modest cuts and SGX Nifty is suggesting a flattish start for our market.

Readers would recall that we have been bearish on Nifty ever since immediate support of 10300 was taken out. After 10200 target was achieved, we had said that 10094, the bottom made in mid-November, is the next support to eye.

Nifty, on Friday, touched a low of 10108 before closing at 10121, nearly achieving this target and vindicating our view.

10094 continues to be important support to eye, upon breach of which, 9950, the two-third retracement level of 9687-10490 upmove, would be the next support to eye.

10300 is the immediate hurdle on the hourly as well as daily chart, a crossover of which is required for turning the view positive. This makes 10300-10100 immediate range, a crossover of which, on either side, is required for taking a fresh directional view on Nifty.

NIFTY MOVES CLOSE TO 10200 TARGET; 10355 IS THE IMMEDIATE HURDLE

NIFTY MOVES CLOSE TO 10200 TARGET; 10355 IS THE IMMEDIATE HURDLE

WORLD MARKETS                             

US indices soared 0.7%-1.4% as the possibility of the Senate passing a bill aimed at overhauling the U.S. tax code increased.

Senator John McCain said he will back the Senate GOP's tax bill, boosting the plan's chances of clearing the Senate by Friday. McCain had been one of the last GOP senators not committed to supporting the proposal.

OPEC members and other oil-producing countries agreed to extend production cuts until the end of 2018. Crude prices rose slightly by 0.2% to settle at $57.40 per barrel.

European markets, except a 0.2% higher Italy, lost 0.3%-0.9%. Mining stocks, in particular, came under pressure, as nickel prices tumbled some 2.5%.

AT HOME

Benchmark indices nosedived a percent and third, registering largest single day fall in two months and extending the losing streak to third straight day. Sensex slipped 453 points to settle at 33149 while Nifty finished at 10227, down 135 points. BSE mid-cap index fell 0.6% but small-cap index managed to gain 0.1%. BSE Bankex tumbled 1.9%, becoming top loser among the sectoral indices, followed by 1.4% lower Finance index. Realty and Telecom indices were the top gainers, up 1.1% and 0.4% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 1501 cr, 625 cr and 2624 cr respectively. DIIs were net buyers to the tune of Rs 1203 cr.

Rupee depreciated 14 paise to end at 64.46/$.

India's fiscal deficit, the gap between the government's earnings and spending, stood at Rs 5.25 lakh crore in the April to October period, which is 96.1% of the Rs 5.47 lakh crore target for the current financial year.

The Indian economy grew 6.3% in July-September, recovering from a three-year low growth slump of 5.7% in April-June. Gross value added (GVA), which is GDP minus taxes, grew 6.1%, rebounding from 5.6% in April-June.

OUTLOOK

Senate Republicans on Thursday night pushed back voting on their tax bill as a setback forced them to patch up the plan only hours before a planned final vote.

Today morning, Nikkei and Hang Seng are up 0.2% and 0.4% respectively but Shanghai is down 0.1%. SGX Nifty is suggesting about 20 points lower start for our market.

In yesterday's report we had reiterated the view that 10300, where 34-DMA was placed, was the important immediate support, a breach of which would also generate a sell on the hourly chart and would pave the way for further correction. We had also said that 10200, the two-third retracement level of the recent 10094-10410 upmove, would be the next downside target if that happens.

Nifty broke 10300 support in the first hour itself and plunged all the way to 10211, coming in very close to 10200 target and vindicating our view.

10200 continues to be immediate support below which 10094, the bottom made in mid-November, would be the next downside target as well as support to eye.

Meanwhile, immediate resistance on the hourly chart is placed around 10355, with the stop-loss of which, trading shorts should be held on to.

NIFTY SET TO TEST 10300 SUPPORT

NIFTY SET TO TEST 10300 SUPPORT

WORLD MARKETS                             

Dow gained 0.4% but S & P 500 ended flat and Nasdaq tumbled 1.3% as technology stocks sold off while financials rose.

The second estimate for third-quarter GDP was revised to 3.3% from 3%. It was also above the 3.2% expected by markets.

Yields on U.S. Treasurys rose as investors took note of better-than-expected GDP numbers and outgoing Federal Reserve Chair Janet Yellen's remarks on the outlook for the U.S. economy. Yellen also said she was "very worried" about the U.S. public debt trajectory.

US crude settled 1.2% lower while Brent fell 0.8% to settle at $63.10 a barrel.

In Europe, FTSE  fell 0.9% while other markets ended with modest gains.

AT HOME

Benchmark indices ended with modest cuts, extending the losing streak to second straight day. Sensex lost 16 points to settle at 33603 while Nifty finished at 10361, down 9 points. BSE mid-cap index fell 0.2% while small-cap index ended flat. BSE Metal index fell 0.6%, becoming top loser among sectoral indices followed by 0.4% lower Bankex and Basic Material indices. Realty and Consumer Durable indices were the top gainers, up 0.7% and 0.6% respectively.

FIIs net sold stocks and stock futures worth Rs 859 cr and 563 cr respectively but net bought index futures worth Rs 1281 cr. DIIs were net buyers to the tune of Rs 771 cr.

Rupee appreciated 9 paise to end at 64.32/$, the strongest level in 10-weeks.

OUTLOOK

Today morning, Nikkei if flat but Hang Seng and Shanghai are down 1.3% and 0.4% respectively. SGX Nifty is suggesting about 50 points lower start for our market.

After today's gap down opening, Nifty will be close to immediate important support of 10300 where 34-DMA as well as the immediate previous bottom on hourly chart are placed.

A breach of 10300 would confirm a sell on the hourly chart and would pave the way for further correction. 10200, the two-third retracement level of the recent 10094-10410 upmove, would be the next support in that case.

10410, the top made on Tuesday, is the immediate hurdle above which 10490 would be the next target.

India's second quarter GDP will be released today and is expected to show a growth of 6.39%, up from 5.7% in first quarter.

OPEC will decide about extension of the output cut today. Oil Markets are concerned about Russia's commitment to extend production cuts. The existing output agreement, which includes OPEC and Russia, will expire in March next year.