11370 IS THE IMMEDIATE HURDLE; 11160 BELOW 11210

11370 IS THE IMMEDIATE HURDLE; 11160 BELOW 11210

WORLD MARKETS

Dow and Nasdaq soared 1% each while S & P 500 rose 0.8%, with the Dow hitting its first record high since January 2018 as trade fears eased. S & P 500 too hit fresh record.

China's commerce ministry said it hopes the U.S. would take steps to correct its behavior.

WTI crude fell 38 cents at $70.80 and Brent eased 80 cents to $78.60 after Trump, in a tweet, called on OPEC to "get prices down now!"

Dollar index fell nearly a percent to 93.90, its lowest in 2.5 months.

European markets gained 0.5%-1%. U.K. retail sales jumped 3.3% y-o-y in August, beating analyst expectations. Sterling jumped 0.7% to $1.323, lifted by the sales numbers and optimism over Brexit.

AT HOME

After gaining about half a percent in the morning, benchmark indices reversed these gains in noon trade to end lower by four tenth of a percent, extending the losing streak to third straight day. Sensex lost 169 points to settle at 37121 while Nifty finished at 11234, down 44 points. BSE mid-cap and small-cap indices fell 0.7% and 1% respectively. BSE FMCG, Finance and Realty indices fell 1% each, becoming top losers among the sectoral indices while Metal index soared 1.2%, becoming top gainer, followed by 1% higher Oil & Gas index.

FIIs net sold stocks and stock futures worth Rs 2185 cr and 59 cr respectively but net bought index futures worth Rs 355 cr. DIIs were net buyers to the tune of Rs 1201 cr.

Rupee appreciated 60 paise to end at 72.37/$.

RBI told that Yes Bank MD and CEO, Rana Kapoor's term will end on 31st January 2019.

OUTLOOK

Today morning, Nikkei and Hang Seng are up 0.4% and 0.8% respectively while Shanghai is little changed. SGX Nifty is trading around 11350, suggesting 80 points higher start when compared to close of Nifty future on Wednesday.

After Nifty broke the 11430-11380 support zone on Monday, we had given downside targets of 11340 followed by 11250. On Wednesday we had said that if 11250 gives way, 11160, the 50% retracement level of the 10560-11760 upmove, would be the next support to eye.

Nifty, touched a low of 11210 before closing at 11234 on Wednesday and is set to open around 11300 today.

While 11370 is the immediate hurdle on the hourly chart, 11470-11500 where the former is 34-DMA and later is 20-DMA, would be the tougher resistance zone to eye.

11210, the bottom made on Wednesday, is the immediate support, below which 11160, as mentioned above, would be the next support to eye.