NIFTY RETREATS FROM THE VICINITY OF 10830 HURDLE; OPEC MEETING IN FOCUS

NIFTY RETREATS FROM THE VICINITY OF 10830 HURDLE; OPEC MEETING IN FOCUS

WORLD MARKETS

US indices fell 0.6%-0.9% on trade worries, with the Dow extending the losing streak to eight straight day.

Auto stocks fell following a profit warning from German car manufacturer Daimler, which said its bottom line could be affected by the U.S.-China trade tensions. Caterpillar and Boeing dropped 2.5% and 1.5% respectively.

Ahead of highly watched OPEC meeting WTI oil ended down 17 cents at $65.54, bouncing off a session low of $64.34 a barrel. Brent fell $1.69, or 2.3% to $73.05 a barrel. Markets are expecting the oil producers to ease production cuts that have been in place since 2017. Saudi Arabia's energy minister said the consensus was for output to be increased by one million barrels per day.

The Bank of England (BOE) held interest rates steady but the bank's chief economist joined two of the more hawish members of its monetary policy committee members in calling for a rate rise to 0.75%. Pound reacted by strengthening 0.7%.

European markets tumbled 0.9%-1.4%

AT HOME

Benchmark indices ended lower by three tenth of a percent after a choppy trade. Sensex lost 115 points to settle at 35432 while Nifty finished at 10741, down 31 points. BSE mid-cap and small-cap indices fell 0.5% and 0.8% respectively. Except 0.8% and 0.6% higher Energy and Oil & Gas indices respectively, all the BSE sectoral indices ended in red with Telecom index leading the losses, down 1.6%, followed by 1.1% lower Healthcare and Capital Goods indices.

FIIs net bought stocks and index futures worth Rs 1127 cr and 268 cr respectively but net sold stock futures worth Rs 106 cr. DIIs were net buyers to the tune of Rs 664 cr.

Rupee appreciated 9 paise to end at 67.98/$.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.5%-1% and SGX Nifty is suggesting about 35 points lower start for our market

After Nifty bounced back from 10700 support, in yesterday's report we had said that 10830, the top made on Monday, is the immediate hurdle, a crossover of which is required for a further upmove.

Nifty, after touching a high of 10810 in the initial trade, slipped to end at 10741 and is set to open around 10700 today.

10700 is where bottom made on Tuesday is palced while 50-DMA is placed around 10670 which makes 10700-10670 an important support zone. Below 10670, 10550, the bottom made in early June, would be the next support to eye.

10830 continues to be immediate hurdle above which 10900-10930 would the tougher resistance zone.