9800 BELOW 9950; 10130 IMMEDIATE HURDLE

9800 BELOW 9950; 10130 IMMEDIATE HURDLE

WORLD MARKETS

US indices tumbled 1.8%-2.4% with the Dow closing at its lowest level since November.

In response to US imposing tariffs on up to $60 billion in Chinese imports, China's commerce ministry proposed a list of 128 U.S. products as potential retaliation targets, adding that it could also take legal action under World Trade Organization rules.

WTI crude rose 2.5% to $65.88 a barrel after the Saudi energy minister said OPEC would need to keep coordinating supply cuts with non-member countries including Russia into 2019.

European markets fell 0.4%-1.8%.

For the week, US indices nosedived 5.7%-6.5%, suffering biggest weekly loss since January 2016. European markets fell 3.4%-4.1%. In Asia, Nikkei nosedived 4.9% while Shanghai and Hang Seng fell 3.6% and 3.8% respectively.

Both Brent and WTI rose more than 5% for the week.

AT HOME

Sensex and Nifty plunged a percent and fifth to close at the lowest level since 23rd October and 11th October 2017 respectively, marking a five-month low. Sensex lost 410 points to settle at 32596 while Nifty finished at 9998, down 117 points. BSE mid-cap and small-cap indices nosedived 1.4% and 1.5% respectively. Except a 0.2% higher IT index, all the BSE sectoral indices ended in red with Realty and Metal indices leading the tally, down 3.3% and 2.9% respectively.

FIIs net bought stocks worth Rs 1628 cr but net sold index futures worth Rs 2010 cr and 239 cr respectively. DIIs were net sellers to the tune of Rs 935 cr.

Rupee appreciated 10 paise to end at 65.01/$.

For the week, Sensex and Nifty lost 1.7% and 1.9% respectively, extending the losing streak to fourth straight week.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.5%-1% and SGX Nifty is suggesting about 20 points lower start for our market.

After Nifty broke the 10033 support, we have been working with the downside target of around 9800, where the trendline adjoining bottoms made in February and December 2016, is placed.

Nifty, on Friday, touched a low of 9951 before closing at 9998 and is set to open lower today.

9950, the bottom made on Friday, also coincides with the lower band of weekly bollinger and hence is an immediate support to eye. Upon breach of 9950, 9800, as mentioned above, would be the downside target as well as crucial support to eye.

Meanwhile, immediate hurdle on the hourly chart has moved lower to 10130, with the stop-loss of which, trading shorts should be held on to.