NIFTY NEARLY ACHIEVES 10550 TARGET; 10700 IS THE IMMEDIATE HURDLE
US indices gained 0.4%-0.8% on the back of rise in bank and technology shares.
US GDP increased at a 2.0 percent annual rate in the January-March period, instead of the 2.2% pace estimated last month.
US crude rose 69 cents or 1% to $74.03 a barrel, marking three-and-a-half year high. Brent gained 23 cents to reach $77.85.
In Europe, FTSE fell 0.1% while other markets lost 0.6%-1.4% with DAX leading the losses.
Sensex and Nifty fell 0.5% and 0.8% respectively to close at the lowest level since 5th June. Sensex lost 179 points to settle at 35037 while Nifty lost 82 points to finish at 10589. BSE mid-cap and small-cap indices nosedived 1.6% and 1.5% respectively. Except 0.2% higher Telecom and Metal indices, all the BSE sectoral indices ended in red with Oil & Gas and Consumer Durable indices leading the losses, down 2.2% and 2.4% respectively.
FIIs net sold stocks and index futures worth Rs 952 cr and 2694 cr respectively but net bought stock futures worth Rs 1435 cr. DIIs were net buyers to the tune of Rs 443 cr.
Rupee depreciated 18 paise to end at record closing low of 68.79/$.
Today morning, Hang Seng and Nikkei are modestly lower while Shanghai is up 0.1%. SGX Nifty is suggesting a marginally higher start for our market.
After Nifty broke the 10700 support, we had given downside target of 10550, which was the bottom made in early June. Nifty yesterday plunged all the way to 10057 before closing at 10589, nearly achieving 10550 target and vindicating our view.
10550 is where bottom made in June is placed while 10515 is where 20 as well as 34-week moving averages are placed. This makes 10550-10515 a crucial support zone.
10700, the earlier support, would now act as the immediate hurdle, a sustained trading above which is required for a fresh upmove.