NIFTY TAKES OUT 10490 HURDLE; STAY LONG WITH THE STOP-LOSS OF 10425

NIFTY TAKES OUT 10490 HURDLE; STAY LONG WITH THE STOP-LOSS OF 10425

WORLD MARKETS                             

US and European markets were closed yesterday for Christmas.

Trump signed a bill on Friday that slashes the corporate tax rate to 21% from 35%.

On the data front, Personal income rose 0.3% last month, lower than the expected 0.4% gain. Durable goods orders rose 1.3% in November, the expected figure being 2%. New home sales rose to a 10-year high in November.

Main European markets fell 0.2%-0.4% but Spain tumbled 1.2% on Friday after Catalonia's separatists appeared set to regain power in the region, following local elections that took place Thursday.

For the week, US indices gained 0.3%-0.4%. In Europe, FTSE and CAC gained 1.4% and 0.3% respectively but DAX fell 0.2%. In Asia, Hang Seng soared 2.5%, followed by 1.6% and 1% higher Nikkei and Shanghai.

AT HOME

Benchmark indices ended higher by half a percent to close at fresh record high on Friday. Sensex added 184 points to settle at 33940 while Nifty finished at 10493, up 53 points. BSE mid-cap and small-cap indices gained 0.1% and 0.6% respectively. Except a 0.6% and 0.1% lower Consumer Durable and Metal indices respectively, all the BSE sectoral indices ended in green with IT and Teck indices leading the tally, up 1.3% and 1% respectively.

FIIs net bought stocks and stock futures worth Rs 108 cr and 115 cr respectively but net sold index futures worth Rs 507 cr. DIIs were net buyers to the tune of Rs 372 cr.

Rupee appreciated 1 paise to end at 64.05/$.

For the week, Sensex and Nifty gained 1.4% and 1.5% respectively.

OUTLOOK

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

Nifty on Friday climbed 53 points to end at 10493, taking out the 10490 top made in early November decisively. 10670 is the next upside target to eye above which 10800 and 10950 would be the subsequent targets.

10425 is the immediate support on the hourly chart below which 10330, the immediate previous top on the daily chart, would be the next important support to eye. Traders are advised to hold long positions with the stop-loss of 10425.