8975 IS THE NEXT SUPPORT; 9120 IMMEDIATE HURDLE
Dow ended marginally in the red but S & P 500 and Nasdaq gained 0.2% and 0.5% respectively, awaiting a key health care vote in Congress, which is seen as a proxy of U.S. President Donald Trump's mandate.
The House is expected to vote on House Speaker Paul Ryan's healthcare plan today, but the Obamacare replacement has seen resistance not just from Democrats, but from conservative GOP members too. Market is concerned that a prolonged battle in Congress to repeal and replace Obamacare could delay tax reform, deregulation and government spending.
WTI crude fell 0.4% to $48.04 per barrel, its lowest since November, after Energy Information Administration (EIA) data showed that U.S. stockpiles climbed almost 5 million barrels to 533.1 million last week, beating forecasts of a 2.8 million-barrel increase.
Dollar index fell 0.1%.
Main European markets lost 0.2%-0.7%. The pound fell to a low of $1.2426 after a terror incident in London left five dead, including an attacker and a police officer.
Sensex and Nifty plunged 1.1% and 1% respectively, registering the biggest fall since 2nd December 2016 and 20th January 2017 respectively. Sensex settled at 29168, down 318 points while Nifty lost 91 points to finish at 9030. BSE mid-cap and small-cap indices fell 1% and 0.9% respectively. Except a flat Realty index, all the sectoral indices of BSE ended in red with Telecom and Consumer Durable indices leading the tally, down 2.1% and 1.9% respectively.
FIIs net bought stocks and index futures worth Rs 357 cr and 1053 cr respectively but net sold stock futures worth Rs 1820 cr. DIIs were net sellers to the tune of Rs 780 cr.
Rupee depreciated 20 paise to end at 65.51/$.
NSE has added 15 stocks in derivative segment from 31st March. These are PVR, CAPF, Muthoot Finance, Equitas, Infibeam, Reliance Defence, Indigo, Dalmia Bharat, Ujjivan, Suzlon, Piramal Enterprises, Escorts, Shree Cements, Max Financial and Indian Bank.
Today morning Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 30 points higher start for our market.
Nifty yesterday broke the immediate support of 9045 and touched a low of 9019 before closing at 9030. 8975, the lower end of the gap created by the big gap up opening after the assembly election results last week, is the next support to eye.
Immediate resistance on the hourly chart is placed around 9120, with the stop-loss of which trading shorts can be held on to.