NIFTY RETREATS FROM THE VICINITY OF 11572 HURDLE; 11311 CONTINUES TO BE IMMEDIATE SUPPORT

NIFTY RETREATS FROM THE VICINITY OF 11572 HURDLE; 11311 CONTINUES TO BE IMMEDIATE SUPPORT

WORLD MARKETS

US indices fell 0.1%-0.6% after the closely-watched benchmark 10-year Treasury yield hit its lowest level since Dec. 15, 2017 as worries over a possible economic slowdown lingered.

The benchmark 10-year rate traded at 2.386% after Stephen Moore, who is expected to be nominated to the Federal Reserve Board of Governors, called for the central bank to cut rates by half a percentage point.

US crude fell 53 cents to $59.41 per barrel while Brent eased 14 cents to $67.83 after EIA data showed U.S. crude inventories rose last week by 2.8 million barrels, compared with analysts’ expectations for a decrease of 1.2 million barrels.

Earlier, data showed Chinese industrial profit suffered their biggest drop since 2011 in the first two months of the year, falling 14% year to date

Main European markets ended flat to marginally lower.

AT HOME

Benchmark indices ended lower by three tenth of a percent after a choppy session. Sensex settled at 38132, down 100 points while Nifty lost 38 points to finish at 11445. BSE mid-cap and small-cap indices however, gained 0.6% each. BSE Utilities and Energy and indices tumbled 1.1% and 1% respectively, becoming top losers among the sectoral indices while Bankex and Consumer Durable indices were the top gainers, up 0.7% and 0.5% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 1481 cr, 1509 cr and 291 cr respectively. DIIs were net buyers to the tune of Rs 135 cr.

Rupee depreciated 1 paise to end at 68.87/$.

OUTLOOK

Today morning, Nikkei is trading with deep cut of nearly 2% while Hang Seng and Shanghai are off 0.2% and 0.4% respectively. SGX Nifty is suggesting about 30 points lower start for our market.

After Nifty crossed the immediate hurdle of 11470 on Tuesday, in yesterday's report, we had said that 11572, the top made last week, is the next hurdle to eye.

Nifty, after touching a high of 11546, slipped to end at 11445 and is set to open around 11400 today.

11311, the low made on Monday, continues to be immediate support to eye. If that breaks, 11195, the 38.2% retracement level of the entire 10585-11572 upmove, would be the next support to eye.

11572 continues to be important immediate hurdle, a crossover of which is required for a fresh upmove. If that happens, 11760, the top made in August 2018, would be the next target to eye.