10675 IS THE NEXT SUPPORT; 10850 IMMEDIATE HURDLE

 10675 IS THE NEXT SUPPORT; 10850 IMMEDIATE HURDLE

WORLD MARKETS

U.S. stock market was shut yesterday out of respect for former President George H.W. Bush's funeral.

Main European markets ended with cuts of 1.2%-1.4% as resurgent trade worries worsened fears about global economic growth. Eurozone retain sales were up 0.3% month-on-month and 1.7% year-on-year gain.

Sterling to fall below the $1.27 mark for the first time since the end of October after British Prime Minister Theresa May suffered a series of embarrassing defeats in Parliament on Tuesday.

US oil fell 36 cents to $52.89 a barrel and Brent was down 24 cents at $61.84 ahead of a meeting of the world's biggest oil exporters who will discuss cutting output to help shore up prices and curb excess supply..

AT HOME

Benchmark indices fell 0.7% each, extending the losing streak to second straight day. Sensex lost 250 points to settle at 35884 while Nifty finished at 10785, down 84 points. BSE mid-cap and small-cap indices tumbled 1.2% each. All the BSE sectoral indices ended in red with Metal and Auto indices leading the losses, down 3.8% and 2.4% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 358 cr, 1165 cr and 843 cr respectively. DIIS were net sellers to the tune of Rs 792 cr.

Rupee appreciated 3 paise to end at 70.46/$.

The monetary policy committee (MPC) kept the benchmark repo rate unchanged at 6.50% as expected and also kept its stance unchanged at 'calibrated tightening'. The committee decided to cut the statutory liquidity ratio (SLR) to 18.0% from 19.5%. Starting the January-March quarter, SLR will be cut by 25 basis points each quarter in order to align it with the liquidity coverage ratio. The RBI also cut its inflation projection for second half of FY19 to 2.7-3.2% from 3.9-4.5% earlier and for first half of FY20 to 3.8%-4.2% from 4.8% earlier. FT19 GDP growth target was maintained at 7.4%.

OUTLOOK

Today morning, Asian markets are down 0.7%-2.2% and SGX Nifty is suggesting about 80 points lower start for our market.

For past couple of sessions, we have been mentioning that 20-week moving average, placed around 10960, is the immediate hurdle, a crossover of which is required for a fresh upmove. We had also said that 200-DMA, placed around 10750, is the immediate support.

Nifty, yesterday, after touching a low of 10748, closed at 10782 but is set to open around 10700 today.

As mentioned yesterday, below 10750, next support to eye would be 20-DMA, which is placed around 10675.

10850 is the immediate hurdle on the hourly chart above which 10941, the top made on Monday, would be the next important hurdle to eye.