10558 IS THE NEXT SUPPORT; 10765 RESISTANCE

10558 IS THE NEXT SUPPORT; 10765 RESISTANCE

WORLD MARKETS

Dow and Nasdaq gained 0.7% each while S & P 500 rose 0.4%. Nasdaq notched a record close as shares of Apple and Amazon hit new highs.

Retail stocks too contributed to gains. Energy stocks however fell as oil fell with WTI down 1.6% to $64.75 and Brent down 2% at Rs $75.29 a barrel.

European markets, except 0.4% lower Italy, gained 0.1%-1.2%

AT HOME

After gaining about seven tenth of a percent at the open, benchmark indices reversed these gains through the session to end lower by six tenth of a percent. Sensex settled 215 lower at 35011 while Nifty lost 68 points to finish at 10628. BSE mid-cap and small-cap indices tumbled 0.8% and 2.1% respectively. BSE Realty and Power indices nosedived 3.2% and 2.3% respectively, becoming top losers among the sectoral indices while Energy and IT indices were the top gainers, up 0.4% each.

FIIs net sold stocks and stock futures worth Rs 203 cr and 1587 cr respectively but net bought index futures worth Rs 553 cr. DIIs were net buyers to the tune of Rs 338 cr.

Rupee depreciated 5 paise to end at 67.11/$.

OUTLOOK

Today morning, Nikkei is up 0.2% while Hang Seng and Shanghai are little changed. SGX Nifty is suggesting a marginally lower start for our market.

In yesterday's report we had reiterated the view that 10640 is the immediate support, with the stop-loss of which, trading longs should be held on to.

Nifty fell 68 points to settle at 10628, breaking this support. 10558, the low made last week, is the next downside target to eye. 10470, where 34-week moving average is placed, would be the next support below 10558.

10765, where a double top on hourly chart is in place, is the immediate hurdle, a crossover of which is required for a fresh upmove.

RBI's Monetary policy committee begins its two day meeting today.