10785-10600 CONTINUES TO BE IMMEDIATE RANGE

10785-10600 CONTINUES TO BE IMMEDIATE RANGE

WORLD MARKETS

US indices, after falling about half a percent following announcement from President Trump that he was withdrawing the U.S. from the Iran nuclear deal signed three years ago, recouped all the losses to end flat.

Back in 2015, the Obama administration and Iran signed a deal to defer sanctions on oil exports from Iran, while Iran curbed its nuclear program. Yesterday, Trump said the U.S. was pulling out of that deal and restoring sanctions.

According to media reports, Iran said it will stay committed to the agreement and will continue negotiating with other parties to the deal.

WTI crude, after plunging more than 4%, recovered to end 2.4% lower at $69.06 a barrel and Brent fell 0.6% to $75.71, also paring back an earlier decline of 4%.

Dollar rose 0.4% to 93.08, it's highest since late December 2017. US treasury yields rose slightly.

Main European markets ended with modest cuts. Italy however tumbled 1.6% as uncertainty over the country's future government loomed.

AT HOME

Benchmark indices ended little changed after trading in half a percent range through the day. Sensex settled 8 points higher at 35216 while Nifty finished at 10718, up 2 points. BSE mid-cap index lost 0.1% while small-cap index rose 0.1%. BSE Bankex soared 1.3%, becoming top gainer among the sectoral indices, followed by 1.1% higher Realty index. Capital Goods and Consumer Durable indices were the top losers, down 0.8% each.

FIIs net sold stocks and index futures worth Rs 97 cr and 94 cr respectively but net bought stock futures worth Rs 461 cr. DIIs were net buyers to the tune of Rs 923 cr.

Rupee appreciated 5 paise to end at 67.07/$.  

OUTLOOK

Today morning, Nikkei and Shanghai are trading with modest cuts while Hang Seng is up 0.4%. SGX Nifty is suggesting about 25 points lower start for our market.

In yesterday's report we had reiterated the view that 10785, the top made last week, is the immediate hurdle, a decisive crossover of which is required for a fresh upmove. Nifty, after touching a high of 10758, slipped to end at 10718 and is set to open around 10700 today.

10785 continues to be immediate hurdle, upon decisive crossover of which 10950 would be the next target.

10600, the bottom made last week, is the immediate support, below which 10515 would be the next downside target.

Eicher Motors will report its quarterly earnings today.