10755-10893 IS THE IMMEDIATE RANGE
US indices fell 0.1%-0.3% after the Trump administration said it will impose a 25% tariff on up to $50 billion in Chinese goods.
Trump also said the U.S. would impose more tariffs on Chinese goods if China retaliates with duties of its own on American products. China promptly responded saying it will implement tariffs on the same scale as the U.S.
Treasury yield fell, with the benchmark 10-year note yield at 2.93%. The short-term two-year note yield also slipped to 2.55%.
Oil tumbled with WTI down $1.83 or 2.7% to $65.06 and Brent off $2.46 or 3.2% to $73.48 a barrel after Russian Energy Minister said his country and Saudi Arabia supported a gradual increase in production after restricting output for 18 months.
European markets fell 0.5%-1.7% with FTSE leading the losses.
After falling about half a percent, benchmark indices recouped all the losses and some more in late noon rebound to end marginally higher. Sensex settled at 35622, up 22 points while Nifty added 10 points to finish at 10817. BSE mid-cap and small-cap indices however ended lower by 0.4% and 0.5% respectively. BSE IT index soared 2.2%, becoming top gainer among the sectoral indices, followed by 1.9% higher Healthcare index. Metal and Realty indices were the top losers, down 1.5% and 1.2% respectively.
FIIs net sold stocks worth Rs 1525 cr but net bought index futures and stock futures worth Rs 604 cr and 385 cr respectively. DIIs were net buyers to the tune of Rs 561 cr.
Rupee depreciated 39 paise to end at 68.01/$.
For the week, Sensex and Nifty gained half a percent, extending the winning streak to fourth straight week.
India's trade deficit in May widened to $14.6 bn from $13.72 bn in April. Imports rose 14.9% y-o-y to $43.5 bn and exports rose 20.2% to $28.9 bn.
Markets in China, Hong Kong, Taiwan and Indonesia are closed today for holidays. Nikkei is down 0.6%. SGX Nifty is suggesting about 40 points lower start for our market.
Last week, after achieving the 10870 target on Wednesday, Nifty eased to touch a low of 10755 on Friday from where it rebounded to end the week at 10817.
10755, the bottom made last week, is the immediate support below which 34-DMA, placed around 10700 would be the next support to eye. 10893, the top made last week, is the immediate hurdle above which 10930, the top made in May, would be the next hurdle to eye.