Wednesday, January 17, 2018

10800, 10950 CONTINUE TO BE UPSIDE TARGETS; 10640 IMMEDIATE SUPPORT

10800, 10950 CONTINUE TO BE UPSIDE TARGETS; 10640 IMMEDIATE SUPPORT

WORLD MARKETS                             

After a positive start, US indices saw a sustained downward move through the session to end with cuts of upto half a percent on possibility of a government shutdown.

US Congress needs to pass a spending bill by the end of Friday to avoid a government shutdown. A point of contention between Republicans and Democrats is an immigration bill which Democrats want to pass. Those talks have complicated efforts to keep the government open.

Higher start was attributed to better-than-expected earnings and rising economic optimism under President Donald Trump. United Health and Citigroup posted better-than-expected earnings.

U.S. crude fell 0.9% to $63.73 and Brent declined 1.6% percent to settle at $69.15 a barrel.

European markets ended mixed with modest changes.

AT HOME

Sensex and Nifty lost 0.2% and 0.4% respectively to break three-day winning streak. Sensex settled at 34771, down 72 points while Nifty finished at 10700, down 41 points. BSE mid-cap and small-cap indicess plunged 1.7% and 2.2% respectively. Except 3.3% and 2.4% higher IT and Teck indices respectively, all the BSE sectoral indices ended in red with Realty and Metal indices leading the tally, down 3.5% and 2.8% respectively.

FIIs net bought stocks and stock futures worth Rs 693 cr and 882 cr respectively but net sold index futures worth Rs 37 cr. DIIs were net sellers to the tune of Rs 246 cr.

Rupee fell 0.9% or 55 paise to close at 64.04/$, marking its biggest fall in eight months.

Research firm Gartner said that global IT spending is expected to grow 4.5% to USD 3.68 trillion this year.

OUTLOOK

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

After Nifty achieved 10700 target, we have been working with next major target of 10950 and had given intermediate target of 10800.

Nifty, after touching a high of 10782 on Monday, has eased and closed at 10700 yesterday.

10800, followed by 10950 continue to be upside targets to eye.

10640 continues to be immediate support on the hourly chart, with the stop-loss of which, trading longs should be held on to.


HUL, ZEEL and Bharti Infratel will report their quarterly earnings today.

Tuesday, January 16, 2018

10700 ACHIEVED; 10800, 10950 NEXT

10700 ACHIEVED; 10800, 10950 NEXT

WORLD MARKETS                             

US markets were shut yesterday for Martin Luther King, Jr. Day.

Dollar index fell nearly a percent and half to 90.45, marking a three year low. Euro touched its highest levels in three years, climbing as high as $1.2296 before paring some gains to last trade at $1.2268.

Commodities rose on dollar weakness, with gold touching its highest levels in four months and more than 1% gains seen in copper, nickel and zinc.

European markets, except half a percent higher Italy, fell 0.1%-0.3%.

AT HOME

Sensex and Nifty gained 0.6% and 0.7% respectively to hit fresh record highs. Sensex added 251 points to settle at 34844 while Nifty finished at 10741, up 60 points. BSE mid-cap index however ended marginally in the red while the samll-cap index rose just 0.3%. BSE Finance index and Bankex gained 1.6% and 1.2% respectively, becoming top gainers among the sectoral indices while Telecom and Auto indices were the top losers, down 1% and 0.9% respectively.

FIIs net bought stocks and stock futures worth Rs 33 cr and 1671 cr respectively but net sold index futures worth Rs 554 cr. DIIs were net sellers to the tune of Rs 173 cr.

Rupee appreciated 15 paise to end at 63.49/$.

India's wholesale inflation eased marginally to 3.58% in December after hitting an eight-month high of 3.93% in November.

Trade deficit in December rose 41% y-o-y to USD 14.88 bn, a 37-month high, as imports surged 21% to USD 41.91 bn while exports rose 12.4% to USD 27 bn.

OUTLOOK

Today morning, Asian markets are trading with gains of upto 0.5% and SGX Nifty is suggesting a marginally higher start for our market.

Ever since Nifty took out 10490 hurdle, we have been working with targets of 10700 followed by 10950.

Nifty yesterday surged 60 points to end at 10741, achieving the 10700 target and moving towards the second target of 10950.

As mentioned in yesterday's report, before 10950, 10800 is the immediate target.


After yesterday's upmove, immediate support on the hourly chart has moved up to 10640, with the stop-loss of which, trading longs should be held on to.

Monday, January 15, 2018

10800, 10950 ABOVE 10700; STAY LONG WITH THE STOP-LOSS OF 10590

10800, 10950 ABOVE 10700; STAY LONG WITH THE STOP-LOSS OF 10590

WORLD MARKETS                             

Dow climbed 0.9% while S & P 500 and Nasdaq gained 0.7% each to hit fresh record highs after major banks, including J.P. Morgan and Wells Fargo, announced better-than-expected quarterly reports.

U.S. consumer prices excluding food and energy rose 0.3% in December from the prior month, beating the 0.2% forecast. Retail sales for December rose 0.4% while November figures were adjusted upwards.

Euro strengthened on news that German Chancellor Angela Merkel had made progress on the formation of a coalition government.

European markets rose 0.2%-0.5%.

For the week, US indices gained 1.6%-2%.

AT HOME

After witnessing wild swings on the back of Supreme Court related controversy, benchmark indices managed to end higher by about three tenth of a percent, notching fresh record high. Sensex settled at 34592, up 89 points while Nifty added 30 points to finish at 10681. BSE mid-cap index lost 0.2% while small-cap index added 0.05%. BSE Energy and Oil & Gas indices gained 0.7% each, becoming top gainers among sectoral indices, followed by 0.5% higher Bankex and Capital Goods indices. Realty index tumbled 1.5%, becoming top loser, followed by 0.5% lower FMCG and Power indices.

FIIs net sold stocks worth Rs 158 cr but net bought index futures and stock futures worth Rs 54 cr and 1086 cr respectively. DIIs were net buyers to the tune of Rs 696 cr.

Rupee appreciated 3 paise to end at 63.64/$.

For the week, Sensex and Nifty gained 1.3% and 1.2% respectively, extending the winning streak to sixth straight week.

Industrial Production for November grew at 8.4%, the highest in 25 months. Retail inflation in December stood at 5.2%, a 17-month high. Core inflation stood at 5%.

In an unprecedented move, four Supreme Court judges today came out against the Chief Justice of India, saying that the administration of the nation's top court was not in order.

Infosys matched earnings estimates for the December ended quarter and maintained its sales guidance for the financial year 2017-18. Net profit rose 37.7% q-o-q to Rs 5130 cr. Revenue rose 1.3% to Rs 17794 cr. Dollar revenue rose 1% to USD 2755 mn while constant currency growth stood at 0.8%. EBIT rose 1.7% to RS 4319 cr and margin expanded by 10 bps to 24.3%. Infy maintained its full-year revenue guidance at 5.5-6.5% in constant currency terms and at 6.5-7.5% in dollar terms but cut FY18 rupee sales growth forecast to 2.1-3.1% from 3-4%.

OUTLOOK

Today morning, except a 0.3% lower Shanghai, other Asian markets are trading with gains of 0.3%-0.8% and SGX Nifty is suggesting about 40 points higher start for our market.

In Friday's report we had reiterated the target of 10700 and had asked raising the stop-loss to 10590.

Nifty touched a high of 10690, nearly achieving the 10700 target, from where it plunged sharply to touch a low of 10597 but recovered smartly to close at 10681. A higher start today will take the benchmark past 10700 mark.

As we have been mentioning, above 10700, 10950 would be the next major target to eye. Before that, 10800 would be the immediate target to eye.

10590 continues to be immediate support, with the stop-loss of which, trading longs should be held on to.


U.S. markets will be closed on today for Martin Luther King, Jr. Day.

Friday, January 12, 2018

NIFTY SET TO ACHIEVE 10700 TARGET; TRAIL STOP-LOSS TO 10590

NIFTY SET TO ACHIEVE 10700 TARGET; TRAIL STOP-LOSS TO 10590

WORLD MARKETS                             

US indices soared 0.7%-0.8% to hit record highs.

Dollar index fell 0.5% to 91.866 after producer price index declined 0.1% month-on-month in December, marking first fall in more than a year. Weakness in index was also attributed to stronger Euro which rose to $1.2059 from the $1.19 in the previous session following the release of European Central Bank minutes construed as hawkish.

Brent crude crossed $70 level before paring some gains to settle at $69.26 — its highest close in three years. U.S. crude rose 23 cents to settle at $63.80 per barrel.

In Europe, FTSE and Italy gained 0.2% and 0.6% respectively while DAX and CAC fell 0.6% and 0.3% respectively. Industrial production in the euro area jumped 1% in November.

AT HOME

Benchmark indices ended higher by a fifth of a percent to scale fresh record high on closing basis. Sensex added 70 points to settle at 34503 while Nifty finished at 10651, up 19 points. BSE mid-cap and small-cap indices gained 0.3% and 0.4% respectively. BSE Realty index soared 2%, becoming top gainer among sectoral indices, followed by 0.8% higher IT index. Energy, Oil & Gas and Consumer Durable indices were the top losers, down 0.3% each.

FIIs net sold stocks and index futures worth Rs 624 cr and 1186 cr respectively but net bought stock futures worth Rs 153 cr. DIIs were net buyers to the tune of Rs 770 cr.

Rupee depreciated 6 paise to end at 63.66/$.

TCS reported 1% q-o-q in dollar revenue at USD 4787 mn. Rupee revenue rose 1.2% to Rs 30904 cr. Net profit grew 1.3% to Rs 6531 cr. Constant currency revenue growth came in at 1.3%, which was lower than 1.7% growth in previous quarter but in-line with estimates.  Operating profit margin rose 1 bps to 25.2%. Volume growth at 1.6% was highest in three years.

Indusind Bank posted 25% y-o-y rise in December quarter net profit at Rs 936 cr. NII rose 20% to Rs 1895 cr. Gross NPA ratio rose 8 bps q-o-q to 1.16% and net NPA ratio rose 2 bps to 0.46%. Slippages however fell to Rs 408 cr from 498 cr sequentially.

OUTLOOK

Today morning, except 0.2% lower Nikkei, other Asian markets are trading with gains of upto 0.7% and SGX Nifty is suggesting about 40 points higher start for our market.

Just to reiterate, we have been working with targets of 10700 followed by 10950 after 10490 top made in early November was taken out. Nifty yesterday closed at 10651 and a gap up opening today would take it very close to 10700 target.

As mentioned above, after 10700, we would be gunning for 10950. Immediate support, after today's higher start, would have risen to 10590, with the stop-loss of which, trading longs should be held on to.

India's industrial production data for November would be released today and is expected to show a growth of 4.4%, up from previous month's 2.2% uptick. CPI for December would also be released and is expected at 5.1%, up from previous month's 4.88%.


Infosys will report its quarterly earnings today.

Thursday, January 11, 2018

TRAIL STOP-LOSS TO 10550 FOR TARGETS OF 10700, 10950

TRAIL STOP-LOSS TO 10550 FOR TARGETS OF 10700, 10950

WORLD MARKETS                             

US indices fell 0.1% each over the possibility of China halting its Treasury bond purchases and the U.S. pulling out of NAFTA.

Media reports suggested that officials in Beijing have recommended the Chinese government lowers — or even stops — its buying of U.S. sovereign debt.

Another report, citing two Canadian government sources, said that Canada is increasingly convinced that Trump will pull the U.S. out of the trade agreement.

Gold rose 0.4% to $1,318.40 per ounce, while the U.S. dollar index dropped 0.2%.

In Europe, FTSE and Italy gained 0.2% and 0.7% respectively while DAX and CAC fell 0.8% and 0.4% respectively.

AT HOME

It was yet another day of consolidation as benchmark indices ended marginally in the red after trading in a narrow range. Sensex settled at 34433, down 10 points while Nifty lost 5 points to finish at 10632. BSE mid-cap and small-cap indices fell 0.3% and 0.04% respectively. BSE IT and Teck indices climbed 1.8% and 1.5% respectively, becoming top gainers among sectoral indices while Auto and Consumer Durable indices were the top losers, down 0.7% and 0.6% respectively.

The Cabinet approved 100% FDI under automatic route for single brand retail trading and construction development. Also, foreign airlines can now invest up to 49 percent via government approved route in Air India.

FIIs net sold stocks and index futures worth Rs 572 cr and 242 cr respectively but net bought stock futures worth Rs 318 cr. DIIs were net buyers to the tune of Rs 600 cr.

Rupee appreciated 13 paise to end at 63.59/$.

OUTLOOK

Today morning, Asian markets are trading with cuts of upto 0.4% and SGX Nifty is suggesting a flattish start for our market.

We have been working with targets of 10700 followed by 10950 after Nifty crossed 10490 top made in early November.

Nifty, after touching a high of 10659, has been in a consolidation mode over last two days and yesterday ended 5 points lower at 10632.

10700 continues to be immediate target. Immediate support on the hourly chart has moved up to 10550, with the stop-loss of which, trading longs should be held on to.


TCS and Indusind Bank will report their quarterly earnings today.

Wednesday, January 10, 2018

NIFTY MOVES CLOSER TO 10700 TARGET; 10510 CONTINUES TO BE IMMEDIATE SUPPORT

NIFTY MOVES CLOSER TO 10700 TARGET; 10510 CONTINUES TO BE IMMEDIATE SUPPORT

WORLD MARKETS                             

US indices gained 0.1%-0.4%

U.S. crude surged 2% to settle at $62.96 per barrel. Brent crude rose 1.5% to $68.82.

Yen strengthened and the yield on the 10-year U.S. Treasury note rose to a nine-month high after the Bank of Japan unexpectedly trimmed its long-dated government bonds purchases.

European markets added 0.1%-0.7%.


AT HOME

Benchmark indices ended with modest gains after a rangebound but choppy session. Sensex added 90 points to settle at 34443 while Nifty finished at 10627, up 4 points. BSE mid-cap index however fell 0.4% and small-cap index gained 0.1%. BSE Realty index soared 2.9%, becoming top gainer among sectoral indices, followed by 1.1% higher Energy index. Telecom and Utilities indices were the top losers, down 1.4% and 0.7% respectively.

FIIs net sold stocks worth Rs 304 cr but net bought index futures and stock futures worth Rs 292 cr and 360 cr respectively. DIIs were net buyers to the tune of Rs 523 cr.

Rupee depreciated 22 paise to end at 63.72/$.

Coal India soared after the company approved an average price hike of nearly 10% in non-coking coal prices for both power and non-power consumers with immediate effect.

OUTLOOK

Today morning, Asian markets are trading flat to modestly lower and SGX Nifty is suggesting a flattish start for our market.

At the risk of repeating, we have been working with target of 10700 followed by 10950 ever since 10490 hurdle was taken out. Nifty yesterday touched a high of 10659 before closing at 10637, moving towards the first target.


10700 continues to be immediate target to eye. 10510 continues to be immediate support, with the stop-loss of which, trading longs should be held on to.

Tuesday, January 9, 2018

10700 CONTINUES TO BE IMMEDIATE TARGET; TRAIL STOP-LOSS TO 10510

10700 CONTINUES TO BE IMMEDIATE TARGET; TRAIL STOP-LOSS TO 10510

WORLD MARKETS                             

Dow ended marginally in the red while S & P 500 and Nasdaq gained 0.2% and 0.3% respectively.

Dollar index rose 0.4% to touch one-week high.

In Europe, FTSE fell 0.4% while CAC, DAX and Italy gained 0.3%-0.4%.

AT HOME

After a positive start, benchmark indices saw a follow-up buying trough the session to end higher by six tenth of a percent, notching fresh record high. Sensex settled at 34353, up 199 points while Nifty added 65 points to finish at 10624. BSE mid-cap and small-cap indices climbed 1% each. Except a 2.6% lower Telecom index, all the BSE sectoral indices ended in green with IT index leading the tally, up 1.4%, followed by 1.2% higher Capital Goods and Healthcare indices.

FIIs net bought stocks and index futures worth Rs 693 cr and 205 cr respectively but net sold stock futures worth Rs 33 cr. DIIs were net buyers to the tune of Rs 206 cr.

Rupee depreciated 13 paise to end at 63.50/$.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.1%-0.8% with Nikkei on the top and SGX Nifty is suggesting about 20 points higher start for our market.

Ever since Nifty took out 10490 hurdle, we have been working with next major target of 10950 with 10700 being immediate target.

Nifty yesterday touched a high of 10631 before closing at 10623 and is set to open higher today.


10700 continues to be immediate target. Immediate support on the hourly chart has moved up to 10510, with the stop-loss of which, trading longs should be held on to.

Monday, January 8, 2018

NIFTY ON TRACK TO ACHIEVE 10700 TARGET; TRAIL STOP-LOSS TO 10480

NIFTY ON TRACK TO ACHIEVE 10700 TARGET; TRAIL STOP-LOSS TO 10480

WORLD MARKETS                             

US indices soared 0.7%-0.9% on Friday, shaking off jobs data that missed expectation

The U.S. economy added 148,000 jobs in December, lower than the expected 190,000 figure. Average hourly earnings were higher by 2.5% on an annualized basis. Non-manufacturing ISM index fell to 55.9 in December from 57.4 in November. Factory orders rose 1.3% in November, exceeding expectations.

European markets gained 0.4%-1.1%. Euro zone inflation slowed to 1.4% in December from 1.5% the month before, bringing into question an end to the European Central Bank's asset purchasing program.

For the week, Dow, S&P and Nasdaq rose 2.3%, 2.6% and 3.4% respectively, marking their best start to a year since 2006.

AT HOME

Benchmark indices climbed half a percent to scale fresh record intraday as well as closing highs. Sensex added 184 points to settle at 34154 while Nifty finished at 10559, up 54 points. BSE mid-cap and small-cap indices gained 0.7% and 1% respectively. Except a 0.4% and 0.01% lower Oil & Gas and Energy indices respectively, all the BSE sectoral indices ended in green with Telecom and Consumer Durable indices leading the tally, up 2.8% and 1.2% respectively.

FIIs net bought stocks and stock futures worth Rs 581 cr and 91 cr respectively but net sold index futures worth Rs 1201 cr. DIIs were net buyers to the tune of Rs 243 cr.

Rupee appreciated 3 paise to end at 32-month high of 63.37/$.

For the week, Sensex and Nifty gained 0.3% each.

Budget session of the Parliament will begin on January 29 and Union Budget will be presented on February 1.

Data released by Central Statistical Organisation (CSO) on Friday showed India will likely grow at 6.5% in 2017-18, slower than the previous year’s 7.1% expansion. Chief Statistician TCA Anant said that implicit calculations suggest that growth during October-March at 7%. GVA growth is expected to be 6.1%, much lower than RBI's 6.7% estimate. Agriculture growth is expected to slow down to 2.1% from previous year's 4.9% and manufacturing growth is expected to slow down to 4.6% from 7.9%. Gross fixed capital formation however is expected to grow by 4.5% as against 2.4%.

OUTLOOK

Today morning, Shanghai is down 0.1% while other Asian markets are trading with modest gains. SGX Nifty is suggesting about 50 points higher start for our market.

In Friday's report we had mentioned that a sustained trading above 10510 resistance area would generate a "Buy" on the hourly chart and 10700 would be the upside target in that case.

Nifty, on Friday gained 54 points to end at 10559 and is set to open around 10600 today.

10700 continues to be immediate upside target above which 10950 would be the next major target to eye.


After today's higher start, immediate support on the hourly chart would have moved higher to 10480, with the stop-loss of which, trading longs should be held on to.

Friday, January 5, 2018

10700 AFTER SUSTAINED CROSSOVER OF 10510

10700 AFTER SUSTAINED CROSSOVER OF 10510

WORLD MARKETS                             

US indices gained 0.2%-0.6% with the Dow closing above 25000 for the first time ever.

Data from ADP and Moody's Analytics showed the U.S. private sector added 250,000 jobs in December, much higher than the expected 190,000 figure. The IHS Markit services PMI hit a seven-month low.

U.S. Treasury yields moved higher after the report with 10-year yield at 2.45%, while the two-year yield rose to 1.96%. Dollar index however erased previous day’s gains to end at 91.86.

European market soared 0.3%-2.8% with Italy on the top. Automotive stocks led the gains on better-than-expected U.S. car sales data.  Services PMI data showed the euro zone was hovering close to its best growth in seven years.

AT HOME

After a flattish start, benchmark indices saw a sustained northward move through the session to end with gains in excess of half a percent. Sensex added 176 points to settle at 33970 while Nifty finished at 10505, up 62 points. BSE mid-cap and small-cap indices rose 0.7% and 0.9% respectively. Except a 0.2% and 0.1% lower Realty and Auto indices respectively, all the BSE sectoral indices ended in green with Metal and Consumer Durable indices leading the tally, up 2.8% and 2.5% respectively.

FIIs net bought stocks worth Rs 212 cr but net sold index futures and stock futures worth Rs 448 cr and 108 cr respectively. DIIs were net buyers to the tune of Rs 325 cr.

Rupee appreciated 13 paise to end at 63.40/$.

OUTLOOK

Today morning, Asian markets are trading with gains of upto half a percent and SGX Nifty is suggesting about 25 points higher opening for our market.

After getting resisted near the 10510 hurdle on Wednesday, Nifty yesterday showed quite strength by closing at 10505 after touching an intraday high of 10513.

A sustained trading above 10510-10530 resistance area would generate a "Buy" on the hourly chart and would pave the way for further upmove. 10700 would be the next upside target if that happens.

Meanwhile, traders can initiate long positions once the top made in first hour is crossed with the stop-loss of 10405, which is the bottom made on Tuesday.


Government will release first advanced Gross Domestic Product (GDP) estimates for the current financial year and the expected figure is around 6.7%.

Thursday, January 4, 2018

NIFTY RESISTED NEAR 10510 HURDLE

NIFTY RESISTED NEAR 10510 HURDLE

WORLD MARKETS                             

US indices gained 0.4%-0.8%, with all three indices hitting record highs and S & P 500 closing above 2700 first time ever.

Energy stocks surged after oil prices hit fresh two and half year high with WTI rising 2.1% to $61.63 and Brent crude up 1.9% at $67.84 a barrel.

Dollar broke a six-day losing streak to settle at 92.19 after December ISM manufacturing index came in at 59.7 and construction spending rose 0.8$ in November. The Atlanta Federal Reserve raised its fourth-quarter real GDP forecast to 3.2% from 2.8%, citing the strong ISM number.

Minutes from the Federal Reserve's meeting in December showed that most members thought upcoming changes in taxes would lead to higher real GDP growth. The minutes also showed FOMC members were somewhat at odds over meeting the central bank's inflation target of 2%.

Markets largely shrugged off a tweet from President Trump saying that his "nuclear button" was "much bigger and more powerful" than the one controlled by the North Korean leader.

European markets rose 0.3%-0.8%.

AT HOME

After rising more than half a percent in the first hour, benchmark indices gave away all the gains through rest of the session to end little changed. Sensex settled at 33793, down 19 points while Nifty finished 1 point higher at 10443. BSE mid-cap and small-cap indices however gained 0.5% and 1% respectively. BSE Basic Material and Capital Goods indices gained 1.5% each, becoming top gainers among sectoral indices while Auto and IT indices were the top losers, down 0.6% and 0.3% respectively.

FIIs net bought stocks and stock futures worth Rs 96 cr and 41 cr respectively but net sold index futures worth Rs 1011 cr. DIIs were net sellers to the tune of Rs 269 cr.

Rupee depreciated 5 paise to end at 63.53/$.

OUTLOOK

Today morning, Nikkei, which is opening after holidays, is up more than 2%. Hang Seng and Shanghai are up 0.6% and 0.4% respectively. SGX Nifty is suggesting about 25 points higher start for our market.

In yesterday's report we had reiterated the view that 10510 is the immediate hurdle, with the stop-loss of which, trading shorts should be held on to.

Nifty, after touching a high of 10504, slipped to end at 10443 but is set to open higher today.

10510 continues to be immediate hurdle, a sustained trading above which is required to generate a "buy" on the hourly chart.


34-DMA has now moved up to 10335 and is the immediate support to eye.

Wednesday, January 3, 2018

10325 IS THE NEXT SUPPORT; 10510 IMMEDIATE HURDLE

10325 IS THE NEXT SUPPORT; 10510 IMMEDIATE HURDLE

WORLD MARKETS                             

Dow and S & P 500 gained 0.4% and 0.8% respectively while Nasdaq soared 1.5% on the first trading day of 2018. S & P 500 and Nasdaq hit fresh record highs.

IHS Markit manufacturing PMI rose to 55.1 in December, marking the strongest growth since March 2015.

Dollar tumbled to 91.85, a more than three-month low.

WTI crude fell 5 cents to settle at $60.37 per barrel and Brent crude lost 30 cents to settle at $66.57.

European markets ended with cuts of upto 0.5%. In UK, IHS PMI for the manufacturing sector fell to 56.3 in December from 58.2 in November, missing expectations.

AT HOME

Benchmark indices ended little changed after a rangebound but choppy trade. Sensex was absolutely flat at 33812 while Nifty gained 7 points to finish at 10442. BSE mid-cap and small-cap indices however, fell 0.6% each. BSE Telecom and Realty indices tumbled 1.4% and 1% respectively, becoming top losers among the sectoral indices while Metal and Power indices were top gainers, up 0.6% and 0.3% respectively.

FIIs net bought stocks worth Rs 523 cr but net bought index futures and stock futures worth Rs 1030 cr and 416 cr respectively. DIIs were net buyers to the tune of Rs 65 cr.

Rupee appreciated 20 paise to end at 63.48/$.

India's November manufacturing PMI stood at 54.7, up from 52.6 in October and marking the fastest growth in five years.

Ashok Leyland posted 79% y-o-y growth in December sales at 19253 units. Tata Motors registered 48.2% growth at 60671 units. Bajaj Auto's growth stood at 30% with 2.92 lakh units while Hero Motocorp sold 4.72 lakh units, a growth of 43%.

Rajya Sabha yesterday gave its nod to amendments to the insolvency and bankruptcy code that aims to keep defaulting promoters out of the resolution process of insolvent companies.

OUTLOOK

Today morning, Asian markets are trading with gains of upto half a percent and SGX Nifty is suggesting a marginally higher start for our market.

In yesterday's report we had mentioned that a breach of 10423, the low made On Monday, would confirm a "Sell" on the hourly chart and would pave the way for further correction.

Nifty broke this support and touched a low of 10404, from where it rebounded to end at 10442.


34-DMA, placed around 10325, continues to be downside target as well as support to eye. 10510 continues to be immediate hurdle, with the stop-loss of which, trading shorts can be held on to.

Tuesday, January 2, 2018

10320 BELOW 10423; 10510 IS THE IMMEDIATE HURDLE

10320 BELOW 10423; 10510 IS THE IMMEDIATE HURDLE

WORLD MARKETS                             

US and European markets were shut yesterday for New Year.

North Korean leader Kim Jong Un declared his country a nuclear power during his New Year's Day address yesterday, but also acknowledged that he was "open to dialogue" with the South Korea.

AT HOME

After trading in a narrow range for better part of the day, benchmark indices nosedived in last hour to end lower by just under a percent. Sensex lost 244 points to settle at 33813 while Nifty finished at 10436, down 95 points. BSE mid-cap and small-cap indices
Indices however, managed to end higher by 0.1% and 0.3% respectively. BSE Auto index and Bankex fell 0.8% each, becoming top losers among sectoral indices while Utilities and Power indices were the top gainers, up 0.8% each.

FIIs net bought stocks worth Rs 326 cr but net sold index futures and stock futures worth Rs 188 cr and 327 cr respectively. DIIs were net buyers to the tune of Rs 1300 cr.

Rupee appreciated 19 paise to end at five-month high of 63.68/$.

Core sector, comprising eight core industries, grew at 6.8% in November, up from 4.7% in October and highest in 13-months.

TVS Motors registered 39% growth at 2.56 lac units. Eicher Motor reported 17% growth in Royal Enfield sales at 66900 units.

SBI cut lending interest rate by 30 bps to 8.65% with effect from January 01, 2018.

OUTLOOK

Today morning Nikkei is shut but Hang Seng and Shaghai, which are opening after extended weekend, are up 1.1% and 0.5% respectively. SGX Nifty is suggesting a marginally higher start for our market.

For past couple of sessions we have been mentioning that 10426 is the immediate support on the hourly chart a breach of which will confirm a "sell" on the hourly chart and would pave the way for further correction.

Nifty yesterday tumbled 95 points to settle at 10436 after touching a low of 10423 and is set to open marginally higher today.

A breach of 10423, the low made yesterday, would lead to further correction and 34-DMA, placed around 10320, would be the next important support to eye in that case.


Traders can initiate short positions below 10423 keeping a stop-loss of 10510, which is the immediate resistance on the hourly chart.

Monday, January 1, 2018

STAY LONG WITH THE STOP-LOSS OF 10425 FOR 10670 TARGET

STAY LONG WITH THE STOP-LOSS OF 10425 FOR 10670 TARGET

WORLD MARKETS                             

Dow and S &P 500 fell 0.5% each while Nasdaq tumbled 0.7% on Friday, the last trading day of the year.

US oil rose 58 cents or 1% to $60.42 a barrel, marking its best closing price since June 2015. For the year, it gained 12.5%.

European markets, except a 0.8% higher FTSE, fell half a percent.

For the week, US indices fell 0.1%-0.8%. In Europe, CAC and DAX fell 1% and 1.2% respectively but FTSE gained 1.2%. In Asia, Hang Seng and Shanghai rose 1.2% and 0.3% respectively but Nikkei fell 0.6%.

For 2017, S & P 500 gained 19.4%, its best since 2013. Dow surged 25% and Nasdaq was up 28%. In Europe, FTSE gained 8%, DAX 12.5% and CAC 9%. In Asia, Nikkei was up 19%, Hang Seng 36% and Shanghai added 7%.

AT HOME

Sensex and Nifty climbed 0.6% and 0.5% respectively on last trading day of calendar 2017 with Sensex scaling a fresh record high on closing basis. Sensex added 209 points to settle at 34057 while Nifty finished at 10531, up 53 points. BSE mid-cap and small-cap indices gained 0.7% and 0.6% respectively. BSE Telecom and Power indices climbed 1.6% and 1.5% respectively, becoming top gainers among sectoral indices while Oil & Gas and Metal indices were the top losers, down 0.5% and 0.4% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 595 cr, 929 cr and 522 cr respectively. DIIs were net buyers to the tune of Rs 461 cr.

Rupee ended at a near-four month high of 63.87/$, appreciating 21 paise compared to previous close.

For the week, Sensex and Nifty gained 0.3% and 0.4% respectively. For the calendar 2017, Sensex and Nifty gained 28% and 28.6% respectively.

Data on Friday showed that India's budgetary fiscal deficit for the first eight months of 2017-18 stood at 112% - Rs 6.12 lakh crore - of the full year's target of Rs 5.46 lakh crore.


OUTLOOK

Today, most of world markets are shut for New Year. SGX Nifty is suggesting about 30 points lower start for our market.

Readers would recall that after Nifty took out 10490 hurdle on 22nd December, we have been working with immediate target of 10670. Nifty consolidated last week by touching a low of 10460 and finally closing at 10530.

10670 continues to be immediate upside target. 10425 continues to be immediate support on the hourly chart, with the stop-loss of which trading longs should be held on to.


Auto companies will report their December sales figures.