Tuesday, April 23, 2019

11550 IS THE NEXT SUPPORT; 11700 IMMEDIATE HURDLE


11550 IS THE NEXT SUPPORT; 11700 IMMEDIATE HURDLE

WORLD MARKETS

Dow fell 0.2% while S & P 500 and Nasdaq gained 0.1% and 0.2% respectively, bracing for a busy week of corporate earnings.

US crude surged 2.7% or $1.70 to $65.70 and Brent climbed 2.9% or $2.07 to $74.04 a barrel, both hitting highest level since October 31, 2018, after the Trump administration announced that all oil buyers will have to end imports from Iran in just over a week or be subject to U.S. sanctions.

US existing home sales for March fell 4.9% to a seasonally adjusted annual rate of 5.21 million.

Earlier Shanghai composite fell 1.7% after reports suggested China’s policy-making committee will pursue structural changes to its economy, rather than add stimulus.

European markets were shut on account of Easter Monday.

AT HOME

Benchmark indices nosedived a percent and third, suffering worst percentage fall in four months. Sensex settled at 38645, down 495 points while Nifty lost 158 points to finish at 11594. BSE mid-cap and small-cap indices fell 1.5% and 1.4% respectively.

Except 0.6% and 0.5% higher IT and Teck indices respectively, all the BSE sectoral indices ended in red, with Oil & Gas and Energy indices leading the losses, down 3.2% and 2.7% respectively.

FIIs net bought stocks and index futures worth Rs 73 cr and 294 cr respectively but net sold stock futures worth Rs 454 cr. DIIs were net sellers to the tune of Rs 68 cr.

Rupee depreciated 31 paise to end at 69.67/$.

OUTLOOK

Today morning, Asian markets are trading flat to modestly lower and SGX Nifty is suggesting a flattish start for our market.

In yesterday's report we had said that 11660 was the immediate support on the hourly chart, with the stop-loss of which trading longs can be held on to.

Nifty broke this support in the first hour itself and plunged all the way to 11583 before closing at 11594.

11550, the low made on 11th April, is now the important support to eye. If that breaks, 34-DMA, placed around 11460, would be the next level to eye.

11700 is the immediate hurdle on the upside, a crossover of which is required for a fresh upmove.

Third Phase of General election will be held today. 116 constituencies across 13 states and two union territories will vote for the same.

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