NIFTY RESISTED NEAR 11700 ONCE AGAIN

NIFTY RESISTED NEAR 11700 ONCE AGAIN

WORLD MARKETS

Dow ended flat while S & P 500 and Nasdaq rose 0.4% and 0.7% respectively,  as the minutes of latest Fed meeting reaffirmed that it would keep rates unchanged this year.

The U.S. Federal Reserve released the minutes of its March monetary policy meeting, revealing that Fed officials are leaving room for possible interest rate hikes by the end of the year but currently do not expect to make any changes.

US Consumer Price Index rose 0.4% in March, the largest increase in over a year.

On the US-China trade negotiations front, treasury Secretary Steven Mnuchin said that the U.S. and China have “pretty much agreed on an enforcement mechanism ” for when a deal is struck.

US oil rose 64 cents or 1% to $64.61 a barrel and Brent gained $1.04 or 1.5% to $71.65 after U.S. data showing a hefty drawdown in gasoline stockpiles overshadowed crude inventories rising to their highest levels in more than a year.

In Europe, FTSE was flat while DAX and CAC gained 0.5% and 0.2% respectively. European Union leaders have offered to delay Brexit until Oct. 31.

AT HOME

One-day-up, one-day-down phenomena extended as benchmark indices ended lower by just under a percent owing to sharp, late noon plunge. Sensex lost 353 points to settle at 38585 while Nifty finished at 11584, down 87 points. BSE mid-cap index fell 0.3% while small-cap index ended flat. BSE Telecom and Finance indices were the top losers among the sectoral indices, giving away 2.1% and 1.1% respectively while Realty and Healthcare indices were the top gainers, up 1% and 0.5% respectively.

FIIs net bought stocks worth Rs 1430 cr but net sold index futures and stock futures worth Rs 1170 cr and 689 cr respectively. DIIs were net buyers to the tune of Rs 461 cr.

Rupee appreciated 18 paise to end at 69.11/$.

OUTLOOK

Today morning, Nikkei is a tad lower while Hang Seng and Shanghai are marginally higher. SGX Nifty is suggesting about 30 points higher start for our market.

In yesterday's report we had reiterated the view that 11700 continues to be immediate hurdle, a crossover of which is required for a fresh upmove.

Nifty, after touching a high of 11680, slipped to end at 11584 and is set to open above 11600 today.

At the risk of repeating, 11700 continues to be immediate hurdle, a crossover of which is required for a fresh upmove. If that happens, 11761, the top made last week, would be the next target to eye.

11480 and 11460, the 61.8% and 67% retracement levels of the recent 11311-11761 upmove, continue to be support levels to eye.

Phase 1 of the 2019 Lok Sabha election kickstarts today and 91 constituencies across 20 states and Union Territories will go for a poll today.