NIFTY RETREATS FROM 10942 HURDLE; 10729 CONTINUES TO BE SUPPORT

NIFTY RETREATS FROM 10942 HURDLE; 10729 CONTINUES TO BE SUPPORT

WORLD MARKETS

Dow and S & P fell 0.3% and 0.05% respectively while Nasdaq gained 0.1% as uncertainty over US-China trade and geopolitical tensions weighed on the sentiment.

U.S. Trade Representative Robert Lighthizer hinted that a trade deal was not yet certain, saying that any agreement would need to be more than just purchases by China.

Conflict between India and Pakistan escalated after Pakistan carried our air strike in Kashmir.

A summit between President Donald Trump and North Korean leader Kim Jong Un began with an aim to work on relations between the two nations, along with the denuclearization of the Korean Peninsula.

US oil rose $1.44 or 2.6% to $56.94 a barrel after government data showed an unexpected and sharp drop in U.S. crude stockpiles. Brent rose $1.19, or 1.8%, to $66.40.

European markets, except 0.2% higher Italy, lost 0.2%-0.6%.

AT HOME

After rising a percent in the morning, benchmark indices nosedived a percent and fourth from the top of the day on the back of fresh tension between Indian and Pakistan, to end with modest cuts. Sensex settled at 35905, down 68 points while Nifty lost 28 points to finish at 10806. BSE mid-cap and small-cap indices however managed to gain 0.4% and 0.2% respectively. BSE Capital Goods index climbed 1.1%, becoming top gainer among the sectoral indices, followed by 0.5% higher Industrials and Basic Material indices. Consumer Durable index fell 0.7%, becoming top loser, followed by FMCG, Finance, Telecom, Utilities, Bankex, Metal, Power and Teck indices, which fell 0.4% each.

FIIs net bought stocks, index futures and stock futures worth Rs 423 cr, 456 cr and 387 cr respectively. DIIs were net buyers to the tune of Rs 67 cr.

Rupee depreciated 16 paise to end at 71.22/$.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.1%-0.4% and SGX Nifty is suggesting a marginally lower start for our market.

Readers would recall that after Nifty crossed immediate hurdle of 10723, we had given upside target zone of 10810-10860 above which, we had said, 10942, the 67% retracement level of the 11118-10585 fall, would be the next important resistance to eye.

Yesterday, Nifty, after touching a high of 10940, slipped to 10751 before closing at 10793, getting resisted exactly at the hurdle mentioned by us, vindicating our view.

10729, the low made on Tuesday, continues to be immediate support to eye, upon breach of which, 10585, the low made last week, would be the next important support to eye.

10942 continues to be important hurdle, a crossover of which is required for a fresh upmove.

Q3 GDP data will be out today and is expected to show a growth of 6.8%, down from 7.1% in the previous quarter.