10340 IS THE IMMEDIATE HURDLE; 10215 IMMEDIATE SUPPORT

10340 IS THE IMMEDIATE HURDLE; 10215 IMMEDIATE SUPPORT

WORLD MARKETS                             

US indices fell 0.2%-0.4% on Friday on worries over tax reforms.

Treasury Secretary Steven Mnuchin said he expects a Republican tax reform bill to be sent to President Trump by Christmas. House passed a bill aimed at overhauling the tax code on Thursday and the Senate now has to vote on their tax plan.

European markets fell upto 0.8%.  European Central Bank President Mario Draghi told an audience in Frankfurt that the ECB needs to be patient when normalizing monetary policy because despite the improved economic growth in the 19-member area, inflation remains subdued.

US crude jumped 2.6% to $56.55 and Brent gained 2% to settle at $62.59 a barrel, breaking five-day losing streak and retracing much of the week's losses

For the week, Dow and S & P 500 fell 0.4% and 0.2%, extending the losing streak to second week but Nasdaq gained 0.5%. European markets fell 0.6%-1.1%. In Asia, Nikkei and Shanghai fell 1.2% and 1.4% respectively while Hang Seng rose 0.3%.

AT HOME

After climbing a percent and quarter in the opening trade on the back of Moody's upgrade, benchmark indices gave away nearly half the gains through the session to end higher by nearly seven tenth of a percent. Sensex settled at 33343, up 236 points while Nifty added 69 points to finish at 10284. BSE mid-cap and small-cap indices gained 1% and 0.8% respectively. Except 1.4% and 1.1% lower IT and Teck indices respectively, all the BSE sectoral indices ended in green, with Realty and Metal indices leading the tally, up 3.7% and 1.8% respectively.

FIIs net bought stocks and index futures worth Rs 1277 cr and 518 cr respectively but net sold stock futures worth Rs 805 cr. DIIs were net buyers to the tune of Rs 1467 cr.

Rupee appreciated 30 paise to end at 65.02/$.

For the week, Sensex gained 0.1% but Nifty lost 0.4%.

Indusind Bank and Yes Bank will replace Cipla and Lupin in Sensex from December 18.

OUTLOOK

Today morning, Hang Seng is up 0.2% but Nikkei and Shanghai are down 0.4% and 0.6% respectively and SGX Nifty is suggesting a marginally higher start for our market.

In Friday's report we had mentioned that, 10340, the 61.8% retracement level of the recent 10490-10090 fall, is the immediate hurdle on the way up above which 10490 itself would be the next target to eye.

Nifty, after touching a high of 10343 in first hour, eased to end at 10283 and is set to open marginally higher today.

10340 continues to be immediate hurdle, a crossover of which is required for fresh upmove. 10490 would be next target if that happens.

Meanwhile, immediate support on the hourly chart is placed at 10215, with the stop-loss of which, trading longs should be held on to.