10940 IS THE IMMEDIATE SUPPORT; 11118 NEAREST HURDLE

10940 IS THE IMMEDIATE SUPPORT; 11118 NEAREST HURDLE

WORLD MARKETS

Dow fell 0.1% while S & P 500 and Nasdaq lost 0.2% each on Friday after employment data badly missed expectations, adding to growing concerns that the global economy may be slowing down.

The U.S. economy added just 20,000 jobs last month, the weakest figure since September 2017. The expected figure was 180,000.

Earlier, data out of China showed its exports slumped 20.7% from a year earlier, far below analyst expectations and wiping out a surprise jump in January.

US crude fell 66 cents or 1.2% to $56.07 and brent eased 54 cents or nearly 1% to $65.75 a barrel after data showed a slump in Chinese imports and exports last month and the European Central Bank slashed its outlook for economic growth on the continent.

European markets fell 0.5%-1.3%. Sterling dipped sharply hit a two week low on concerns over whether Europe and the U.K. could break the Brexit deadlock.

For the week, US indices fell 2%, posted their biggest weekly declines of the year. In Europe, FTSE ended flat while DAX and CAC were down 1.2% and 0.6% respectively. In Asia, Shanghai fell 0.8% while Hang Seng and Nikkei tumbled 2% and 2.7% respectively.

AT HOME

Benchmark indices ended modestly lower after a rangebound session, breaking four-day winning streak. Sensex lost 54 points to settle at 36671 while Nifty finished at 11035, down 22 points. BSE mid-cap and small-cap indices fell 0.1% each.  BSE Capital Goods and Industrials indices gained 1.5% and 0.8% respectively, becoming top gainers among the sectoral indices while Healthcare index fell 0.9%, becoming top loser, followed by 0.7% lower IT, Metal, Oil & Gas and Teck indices.

FIIs net bought stocks worth Rs 1095 cr but net sold index futures and stock futures worth Rs 251 cr and 1088 cr respectively. DIIs were net sellers to the tune of Rs 470 cr.

Rupee depreciated 15 paise to end at 70.14/$.

For the week, Sensex and Nifty gained 1.7% and 1.6% respectively, extending the winning streak to third consecutive week and closing at the highest level since the week ended 21st September 2018.

2019 Lok Sabha election will be held in 7 phases starting April 11. The results will be out on 23rd May.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.2%-0.6% but SGX Nifty is suggesting about 30 points lower start for our market.

Readers would recall that after Nifty took out 10942 hurdle, we had given target of 11118. Nifty, after touching a high of 11089, eased to end at 11035 last week.

The benchmark is set to open near 11000 today.

10940, the erstwhile resistance, will now act as an immediate support. If that breaks, 34-DMA, placed around 10850, would be the next important support.

11118, the top made in February, continues to be important immediate hurdle, a crossover of which is required for a fresh upmove. If that happens, 11180, the 67% retracement level of the entire 11760-10004 fall, would be the next upside target.