8320 NEXT SUPPORT; 8490 IMMEDIATE HURDLE

8320 NEXT SUPPORT; 8490 IMMEDIATE HURDLE

WORLD MARKETS                             

US markets were shut yesterday for Memorial Day.

In Europe, FTSE and DAX were shut while CAC lost 0.5%. Spanish index plunged more than 2% after the ruling People's Party (PP) took a battering in regional and local elections on Sunday, as voters punished Prime Minister Mariano Rajoy for four years of severe spending cuts and a string of corruption scandals. Italy fell 1.7%. Greece tumbled more than 3% as fears of a potential Greek exit from the euro zone remained in the backdrop after the country's interior minister threatened to default on loan repayments due to the International Monetary Fund on Sunday.

AT HOME

After a lower start, benchmark indices extended the fall through the session to end with deep cuts of nearly a percent. Sensex plunged 314 points to settle at 27644 while Nifty finished at 8370, down 89 points. BSE mid-cap and small-cap indices lost 0.08% and 0.2% respectively. Except a 0.1% rise in BSE Oil & Gas index, all the sectoral indices ended in red with Metal and FMCG indices leading the tally, giving away 1.7% and 1.6% respectively.

FIIs net bought stocks and index futures worth Rs 74 cr and 167 cr respectively but net sold stock futures worth Rs 223 cr. DIIs were net buyers to the tune of Rs 17 cr.

Rupee depreciated 4 paise to end at 63.56/$.

OUTLOOK

Today morning Asian markets SGX Nifty is suggesting a flattish start for our market.

We had been advising holding on to trading longs with a trailing stop loss ever since 8333 hurdle was taken out for a target of about 8600.

In yesterday's report we had recommended trailing the stop loss to 8380, which was the immediate support on the hourly chart. Nifty yesterday tumbled 89 points to end at 8370, breaking the 8380 support.

Next support on the way down comes around 8320 where the 200 DMA as well as the trendline adjoining recent bottoms on the daily chart is placed.

On the way up, 8490, the top made last week, is the immediate hurdle, a crossover of which is required for fresh upmove.

Traders are advised to wait for the breach of 8320-8490 range for taking fresh view on Nifty.

Tata Motors, Tech Mahindra and BHEL will report their quarterly earnings today.