10875 CONTINUES TO BE IMMEDIATE TARGET; 10675 CONTINUES TO BE IMMEDIATE SUPPORT

10875 CONTINUES TO BE IMMEDIATE TARGET; 10675 CONTINUES TO BE IMMEDIATE SUPPORT

WORLD MARKETS

US indices gained 0.1%-0.3% amid trade tensions as the G-7 summit kicked off.

In a fresh tweet, Trump accused France and Canada of levying "massive tariffs" and establishing "non-monetary barriers." This came after French President Emmanuel Macron said that While Trump may not mind being isolated, "we don't mind being six, if needs be,”.

In Europe, CAC was flat while FTSE and DAX fell 0.3% each. Italy tumbled 1.9%

For the week, US indices gained 1.2%-2.8%. In Europe, FTSE and CAC fell 0.3% each while DAX was up 0.3%. In Asia, Nikkei and Hang Seng soared 2.4% and 1.5% respectively while Shanghai was down 0.3%.

U.S. President Donald Trump on the weekend withdrew his support for a G-7 declaration and criticized Canadian Prime Minister Justin Trudeau for being "dishonest and weak."

AT HOME

After falling about half a percent in the first half, benchmark indices recouped most of the losses later to end just marginally lower. Sensex settled at 35443, down 19 points while Nifty finished 1 point lower at 10767. BSE mid-cap and small-cap indices gained 0.4% and 0.6% respectively. BSE Healthcare index soared 3.6%, becoming top gainer among the sectoral indices, followed by 0.8% lower IT and Energy indices each. Power and Metal indices were the top losers, down 0.7% and 0.4% respectively.

FIIs net sold stocks and index futures worth Rs 222 cr and 853 cr respectively but net bought stock futures worth Rs 127 cr. DIIs were net buyers to the tune of Rs 459 cr.

Rupee depreciated 38 paise to end at 67.50/$.

For the week, Sensex and Nifty gained 0.6% and 0.7% respectively, extending the winning streak to third straight week.

Sun Pharma soared after the US Food and Drug Administration (USFDA) updated the status of the company’s Halol facility to VAI (voluntary action initiated) which would imply that there would be no re-inspection required at its Halol unit.

The National Stock Exchange (NSE) on Saturday decided to introduce additional surveillance measures for 60 companies that are undergoing insolvency resolution process (IRP) as per the Insolvency and Bankruptcy Code (IBC).

OUTLOOK

Today morning, Nikkei is up 0.3%, Hang Seng is flat and Shanghai is down 0.5%. SGX Nifty is suggesting about 25 points higher start for our market.

After Nifty crossed 10770 hurdle, we have been working with target of around 10875, where a tendline adjoining tops made in January and May is placed. Nifty, after touching a high of 10818 on Thursday, slipped to end at 10768 and ended flat on Friday.

10875 continues to be upside target as well as hurdle to eye. 10675 continues to be immediate support, with the stop-loss of which, trading longs should be held on to.