10800, 10950 CONTINUE TO BE UPSIDE TARGETS; 10640 IMMEDIATE SUPPORT
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 $69.15 a barrel.
European markets ended mixed with modest changes.
Sensex and Nifty lost 0.2% and 0.4% respectively to break three-day winning streak. Sensex settled at 34771, down 72 points while Nifty finished at 10700, down 41 points. BSE mid-cap and small-cap indicess plunged 1.7% and 2.2% respectively. Except 3.3% and 2.4% higher IT and Teck indices respectively, all the BSE sectoral indices ended in red with Realty and Metal indices leading the tally, down 3.5% and 2.8% respectively.
FIIs net bought stocks and stock futures worth Rs 693 cr and 882 cr respectively but net sold index futures worth Rs 37 cr. DIIs were net sellers to the tune of Rs 246 cr.
Rupee fell 0.9% or 55 paise to close at 64.04/$, 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.
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.