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.