10440 BELOW 10625; 10850 ABOVE 10775

10440 BELOW 10625; 10850 ABOVE 10775

WORLD MARKETS

US indices nosedived 1.7%-2.2% to erase gain for 2018, as decline in Target shares pressured retailers, while steep losses in crude pushed down the energy sector and tech shares extended the correction.

Target fell 10.5% after reporting weaker-than-expected earnings for the previous quarter.

US oil plunged 6.6% to $53.43 a barrel, its lowest level since October 2017 after US President Trump issued a statement saying the United States stands by Saudi Arabia following mounting criticism on the kingdom after the killing last month of journalist and U.S. resident Jamal Khashoggi by Saudi agents. Brent too dipped 6.6% to reach $62.36, its lowest since December 2017.

European markets fell 0.8%-1.9%. Sterling partially rebounded from opening lows after Bank of England Governor Mark Carney said the central bank may not cut interest rates in the event of a no-deal withdrawal from Europe.

AT HOME

Sensex and Nifty tumbled 0.8% and 1% respectively to break 3-day winning streak. Sensex lost 300 points to settle at 35474 while Nifty finished at 10656, down 107 points.  BSE mid-cap and small-cap indices fell 1% and 0.9% respectively. All the BSE sectoral indices ended in red with Metal and Basic Material indices leading the losses, down 2.8% and 1.9% respectively.

FIIs net sold stocks and stock futures worth Rs 753 cr and 573 cr respectively but net bought index futures worth Rs 170 cr. DIIs were net sellers to the tune of Rs 44 cr.

Rupee appreciated 19 paise to end at 71.45/$.

OUTLOOK

Today morning, Main Asian markets are trading with cuts of 1%-1.3% and SGX Nifty is suggesting about 20 points lower start for our market.

In yesterday's report we had said that 34-week moving average, placed around 10850, is the next hurdle to eye and had asked trailing stop-loss to 10625 in trading longs.

Nifty fell 107 points to finish at 10656 and is set to open modestly lower today.

10625 continues to be immediate support on the hourly chart, upon sustained trading below which 10440, the bottom made last week, would be the next important support.

10775, the top made on Monday, is now the immediate hurdle, above which, 34-week moving average, placed around 10850, would be the bigger hurdle to eye.