NIFTY RETREATS FROM THE VICINITY OF 11118 TARGET; 10930 IS IMMEDIATE SUPPORT

NIFTY RETREATS FROM THE VICINITY OF 11118 TARGET; 10930 IS IMMEDIATE SUPPORT

WORLD MARKETS

Dow and S & P 500 fell 0.8% each while Nasdaq tumbled 1.2% on fresh concerns over the state of the global economy.

The European Central Bank (ECB) cut its growth forecast for 2019 to 1.1% from 1.7% and announced a fresh round of stimulus to aid banks in the region. The Bank of Canada said Wednesday there was "increased uncertainty" around future rate hikes, while Australia's fourth-quarter GDP expanded at a pace of just 0.2%. In the U.S., meanwhile, the Federal Reserve has already signaled it will be "patient" in raising rates.

Dollar index rose 0.85% to 97.70. Treasury yields fell, with the 10-year note rate sliding to 2.63% while the 2-year yield dipped to 2.47%.

US crude rose 44 cents to $56.66 while Brent rose 32 cents to $66.31 per barrel.

European markets eased 0.5%-0.7%

AT HOME

It was a day of consolidation as benchmark indices, after trading in a narrow range, ended little changed. Sensex settled at 36725, up 89 points while Nifty added 5 points to finish at 11058. BSE mid-cap and small-cap indices fell 0.3% and 0.1% respectively. BSE Capital Goods and Industrials indices climbed 1.5% and 0.8% respectively, becoming top gainers among the sectoral indices while Healthcare index was the top loser, down 0.9%, followed by 0.7% lower Metal, IT and Teck indices.

FIIs net bought stocks and index futures worth Rs 1138 cr and 533 cr respectively but net sold stock futures worth Rs 378 cr. DIIs were net sellers to the tune of Rs 925 cr.

Rupee appreciated 28 paise to end at 69.99/$.

OUTLOOK

Today morning, Shanghai is down 2% while Nikkei and Hang Seng are off 1.5% each. SGX Nifty is suggesting about 50 points lower start for our market.

After Nifty crossed 10942 hurdle, we had been working with target of 11118, the top made in February. Nifty, yesterday touched a high of 11089, coming in very close to  this target, and closed at 11058, and is set to open around 11000 today.

11118 continues to be immediate hurdle to eye, 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.

Immediate support on the hourly chart has moved up to 10930.