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.