11760 CONTINUES TO BE IMMEDIATE HURDLE; 11590 IMMEDIATE SUPPORT

11760 CONTINUES TO BE IMMEDIATE HURDLE; 11590 IMMEDIATE SUPPORT

WORLD MARKETS

US indices gained 0.2%-1% with Nasdaq leading the tally as technology stocks surged and resumption of US-Canada trade talks boosted the sentiment. Nasdaq and S & P 500 hit a fresh record high with S & P 500 closing above 2900 for the first time.

Second estimate of the second quarter US GDP growth stood at 4.2%, up from an initial forecast of 4.%.

Dollar index fell about 0.2% to 94.53.

Oil rose 1.4% to $69.51/bbl, supported by a drawdown in U.S. crude and gasoline stockpiles and on news of falling Iranian crude shipments as U.S. sanctions deter buyers. Brent rose $1.18, or 1.6%, to $77.13.

In Europe, FTSE fell 0.7% while DAX and CAC rose 0.3% each. The British pound soared 1% to $1.299 after Europe's Brexit negotiator Michel Barnier said the European Union was "prepared to offer a partnership with Britain such as never been with any other third country."

AT HOME

Benchmark indices fell four tenth of a percent, breaking two-day winning streak. Sensex lost 173 points to settle at 38772 while Nifty finished at 11691, down 46 points. BSE mid-cap index however gained half a percent and small-cap index ended marginally higher. BSE Energy index fell 1.1%, becoming top loser among the sectoral indices, followed by 0.7% lower Telecom index. Metal and Realty indices were the top gainers, up 1.1% each.

FIIs net sold stocks and index futures worth Rs 1416 cr and 996 cr respectively but net bought stock futures worth Rs 723 cr. DIIs were net buyers to the tune of Rs 1114 cr.

Rupee depreciated 49 paise to end at 70.59/$.

OUTLOOK

Today morning, Nikkei is up about half a percent, Shanghai is up 0.2% while Hnag Seng is trading marginally in the red. SGX Nifty is suggesting about 15 points higher start for our market.

After nearly achieving the 11770 target represented by the upward sloping trendline adjoining recent tops on the daily chart, Nifty yesterday fell 46 points to end at 11691.

11760, the top made Tuesday, is the immediate hurdle, upon crossover of which 11840 would be the next target to eye.

11590 continues to be immediate support, with the stop-loss of which, trading longs should be held on to.