NIFTY RETREATS FROM THE VICINITY OF 10870 HURDLE; 10710 IS THE IMMEDIATE SUPPORT

NIFTY RETREATS FROM THE VICINITY OF 10870 HURDLE; 10710 IS THE IMMEDIATE SUPPORT

WORLD MARKETS

Dow ended flat while S & P 500 and Nasdaq gained 0.1% and 0.2% respectively, shrugging off concerns over a tumultuous G-7 meeting over the weekend at which Trump lashed out at U.S. allies and looking forward to other events during the week.

U.S. Treasurys slipped across the board, with the yield on the benchmark 10-year note rising to 2.95%.

The highly anticipated meeting between Trump and North Korea leader Kim Jong Un takes place today in Singapore. The two are expected to discuss future relations and denuclearization, alongside other subjects.

The Fed begins its two-day policy meeting on today, with markets expecting a quarter-point interest rate hike announcement tomorrow.

Main European markets gained 0.4%-0.7% while Italy soared 3.4% after Italian Finance Minister, speaking to a local newspaper over the weekend, reaffirmed his government's commitment to the euro.

AT HOME

After gaining about three tenth of a percent, benchmark indices slipped in the late noon trade to end just marginally higher. Sensex settled 40 points higher at 35483 while Nifty finished at 10786, up 19 points. BSE mid-cap index fell 0.1% while the small-cap index rose 0.5%.vBSE Telecom and Consumer Durable indices climbed 1.6% and 1% respectively, becoming top gainer among the sectoral indices while Realty and Metal indices were the top losers, down 0.7% and 0.4% respectively.

FIIs net sold stocks worth Rs 1157 cr but net bought index futures and stock futures worth Rs 472 cr and 86 cr respectively. DIIs were net buyers to the tune of Rs 1063 cr.

Rupee appreciated 8 paise to end at 67.42/$.

OUTLOOK

Today morning, Nikkei is up about 0.7% while Hang Seng and Shanghai are marginally in the green. SGX Nifty is suggesting a flattish start for our market.

Readers would recall that we had given target of 10870, where a trendline adjoining tops made in January and May is placed, after 10770 resistances was taken out.

The benchmark yesterday touched a high of 10850, coming in very close to 10870 target, from where it slipped to end at 10786.

10870 continues to be immediate hurdle, a crossover of which is required for a fresh upmove. If that happens, 10930, the top made in May, would be the next target to eye.

10710 is the immediate support on the hourly chart, with the stop-loss of which, trading longs should be held on to.

April IIP will be released today and is expected to show a print of 5.4%, up from previous reading of 4.4%. May CPI too will be out today and is likely to be at 5%, hardening from previous reading of 4.58%.