12041 CONTINUES TO BE IMMEDIATE HURDLE; 11614 NEAREST SUPPORT

12041 CONTINUES TO BE IMMEDIATE HURDLE; 11614 NEAREST SUPPORT

WORLD MARKETS

Dow rose 0.4% while S & P 500 and Nasdaq gained 0.1% each on Friday.

Indices had rebounded slightly from sharp losses on Thursday after Trump said the ongoing trade war could be over quickly.

U.S. durable goods orders dropped 2.1% last month amid a slowdown in exports and a buildup in inventories. IHS Markit said Thursday that U.S. manufacturing activity fell to a nine-year low.

US oil rose 1.2% to $58.63 a barrel while Brent rose 93 cents, or 1.4% to $67.69.

European markets gained 0.5%-1.2%. UK Prime Minister Theresa May announced that she would resign as party leader on June 7, making way for a new PM to continue Brexit negotiations with the EU

For the week, Dow fell 0.7%, extending the losing streak to fifth consecutive week. S & P 500 and Nasdaq fell 1.2% and 2.3% respectively, marking third consecutive negative week. European markets fell 1%-2.2%. Asian markets were off 0.6%-2.1%. WTI plunged more than 6%, its biggest of 2019 and Brent fell more than 4.5%.

U.S. President Trump is on a state visit to Japan, where he said Tokyo and Washington were “getting close” to a deal that would address the U.S. trade deficit.

AT HOME

After Thursday's healthy profit booking, benchmark indices resumed their upward journey on Friday by surging 1.6% and hitting a record closing high. Sensex soared 623 points to settle at 39434 while Nifty finished at 11844, up 187 points. BSE mid-cap and small-cap indices climbed 2% and 2.4% respectively. All the BSE sectoral indices ended in green with Realty and Capital Goods indices leading the tally, up 4.2% and 4% respectively.

FIIs net bought stocks worth Rs 2026 cr but net sold index futures and stock futures worth Rs 9 cr and 365 cr respectively. DIIs were net sellers to the tune of Rs 195 cr.

Rupee appreciated 48 paise to end at 69.52/$.

OUTLOOK

Today morning, Nikkei is up 0.3% while Hang Seng and Shanghai are down 0.6% and 0.4% respectively. SGX Nifty is suggesting about 20 points lower start for our market.

In Friday's report we had mentioned that "Usually, the top/bottoms made on the big event day are crucial levels to eye. Hence, 12041, the top made yesterday, would be the important resistance going forward, a crossover of which would be required for a fresh upmove".

Nifty, on Friday, rose to touch a high of 11859 before closing at 11844 and is set to open a tad lower today.

12041, the top made on Thursday, continues to be important immediate hurdle, a crossover of which is required for a fresh upmove. On the way down, 10614, the bottom made on Thursday, is the immediate support to eye, with the stop-loss of which, trading longs can be held on to.

ZEE Entertainment, Adani Ports and GAIL will report their quarterly earnings today.