NIFTY BREAKS 11250 SUPPORT; 11210-11185 NEXT SUPPORT ZONE

NIFTY BREAKS 11250 SUPPORT; 11210-11185 NEXT SUPPORT ZONE

WORLD MARKETS

Dow ended flat while S & P 500 and Nasdaq gained 0.5% and 1.2% respectively as Apple surged 3% and became the first U.S. publicly traded company in history to reach $1 trillion in market value.

All three indices started in red on news that President Trump asked U.S. Trade Representative Robert Lighthizer to consider increasing the proposed levies on $200 billion worth of Chinese goods up to 25%, from 10%.

China's Ministry of Commerce responded saying: "China is fully prepared and will have to retaliate to defend the nation's dignity and the interests of the people, defend free trade and the multilateral system, and defend the common interests of all countries."

Dollar index climbed nearly half a percent to 95.17.

US weekly jobless claims rose to 218,000 as against expected figure of 220000.

US oil rose 1.9% to $68.96 after a report suggested crude stockpiles at the U.S. storage hub at Cushing, Oklahoma fell in the latest week. Brent rose$1.23, or 1.7% to $73.62 a barrel.

European markets fell 0.7%-1.7%. Basic resources and Auto stocks fell the most on the back of trade concerns. Bank of England announced an increase in rates from 0.5% to 0.75% on the back of a strong labor market and credit growth.

AT HOME

Benchmark indices nosedived nearly a percent, extending the losing streak to second straight day. Sensex lost 356 points to settle at 37165 while Nifty finished at 11244, down 101 points. BSE mid-cap and small-cap indices however managed to end higher by 0.1% each. BSE Telecom and Realty indices fell 1.5% and 1.4% respectively, becoming top losers among the sectoral indices while Healthcare and Utilities indices were the top gainers, up 1% and 0.6% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 640 cr, 1070 cr and 284 cr respectively. DIIs were net sellers to the tune of Rs 340 cr.

Rupee depreciated 27 paise to end at 68.70/$.

ONGC reported strong operational numbers. Revenue was up 13.5% at Rs 27212 cr, EBITDA surged 29.1% to Rs 14695 cr, margin expanded by 660 bps to 54% and net profit rose 3.9% to Rs 6143 crr. Crude price realisation surged 47.6% yoy to $71.48/bbl, marking a record high.

OUTLOOK

Today morning, Nikkei is flat while Hang Seng and Shanghai are down about 0.2%. SGX Nifty is suggesting about 40 points higher start for our market.

After Nifty nearly achieved the 11400 target on Wednesday, we had advised trailing the stop-loss in long positions to 11250 in yesterday's report. Nifty, yesterday, touched a low of 11235 and closed at 11245, breaking this support but is set to open higher today.

11210-11185, where a gap created by the gap up opening on last Friday is placed, is the next support zone to eye below which 20-DMA, placed around 11100, would be the next support to eye.

11390, the top made Wednesday, is the immediate hurdle, a crossover of which is required for a fresh upmove.

Titan and Nestle will report their quarterly earnings today.