9830 BELOW 9944; STAY SHORT WITH THE STOP-LOSS OF 10070

9830 BELOW 9944; STAY SHORT WITH THE STOP-LOSS OF 10070

WORLD MARKETS                             

US indices fell about a fifth of a percent with the Dow snapping a 10-day winning streak as Geopolitical tensions resurfaced.

President Trump warned North Korea, saying that threats will be "met with fire and fury" after revelations that Korea has successfully created a miniaturized nuclear weapon designed to fit inside its missiles.

US 10-year yield jumped to 2.28% after the jobs openings and labor turnover survey showed a record number of job openings for June.

St. Louis Fed President James Bullard said the central bank doesn't need to change rates in the near term because inflation is unlikely to rise significantly, despite improvements in the labor market.

European markets gained 0.1%-0.3% shrugging off weaker-than-expected trade data from China and Germany.

Just hours after Trump's warning, North Korea reportedly said it was "carefully examining" a plan to strike the U.S. Pacific territory of Guam with missiles.

AT HOME

Benchmark indices plunged eight tenth of a percent to close at the lowest level in nearly two weeks. Sensex lost 259 points to settle at 32014 while Nifty finished at 9979, down 79 points. BSE mid-cap and small-cap indices nosedived 1.2% and 1.3% respectively. Except a 1.6% and 0.3% higher Metal and Basic Material indices, all the BSE sectoral indices ended in red with Realty index leading the tally, down 4.5%, followed by 2.2% lower Oil & Gas index.

FIIs net bought stocks and stock futures worth Rs 1540 cr and 26 cr respectively but net sold index futures worth Rs 417 cr. DIIs were net buyers to the tune of Rs 799 cr. However, excluding Rs 2570 Bharti Infratel deal, FII's were net sellers.

Rupee appreciated 17 paise to end at 63.63/$.

OUTLOOK

Today morning, Nikkei is down more than a percent, other Asian markets are trading with cuts of 0.3%-0.7% and SGX Nifty is suggesting about 25 points lower start for our market.

After the immediate support of 10000 was taken out, we had said that 20-DMA is the next support to eye. Nifty yesterday touhced a low of 9947 before closing at 9978, breaching the 20-DMA support placed around 9970 intraday but managing to close above it.

9947, the bottom made yesterday, also coincides with the 9944 bottom made towards the end of July and therefore is the immediate support to eye. Below 9947, 34-DMA, placed around 9830, would be the next important support to eye.

Meanwhile, immediate resistance on the hourly chart is placed around 10070, with the stop-loss of which trading shorts should be held on to.

Tata Motors, Eicher Motors and Aurobindo Pharma will report their quarterly earnings today.