11844 CONTINUES TO BE IMMEDIATE HURDLE; 11700 NEAREST SUPPORT

11844 CONTINUES TO BE IMMEDIATE HURDLE; 11700 NEAREST SUPPORT

WORLD MARKETS

US indices fell 0.1%-0.2% on Friday.

Indices touched session highs on reports that Vice President Mike Pence would postpone a China policy address amid “positive signs” on trade. But stocks pared most of those gains after the Commerce Department barred five additional Chinese companies from buying U.S. components without approval.

US oil rose 0.6% to $57.43 a barrel while Brent gained 69 cents or 1.1% to $65.14  on fears the United States could attack Iran and disrupt flows from the Middle East. Iranian officials said Tehran had received a message from Trump through Oman overnight warning that a U.S. attack on Iran was imminent. The officials said they had responded by saying that any attack would have regional and international consequences

Trump also said Saturday that the U.S. would impose “major additional sanctions ” against Iran on Monday.

Main European markets too fell 0.1%-0.2%. Britain posted a larger-than-expected budget deficit as the deficit for May rose by 23% from the previous year.

For the week, Dow and S&P 500 both rose more than 2%, while the Nasdaq climbed 3%. WTI surged more than 9%, its biggest weekly percentage gain since December 2016 while Brent climbed 5%.

AT HOME

After Thursday's bull rampage, Friday was a day of bear domination as  benchmark indices tumbled nearly a percent, giving away three-fourth of yesterday's gains. Sensex slipped 407 points to settle at 39194 while Nifty finished at 11724, down 107 points. BSE mid-cap index fell 0.4% while small-cap index gained 0.1%. Except 0.1% higher Basic Material and Power indices, all the BSE sectoral indices ended in red with Auto index leading the losses, down 1.3%, followed by 1.1% lower Energy and Telecom indices.

FIIs net sold stocks and index futures worth Rs 731 cr and 160 cr respectively but net bought stock futures worth Rs 39 cr. DIIs were net buyers to the tune of Rs 446 cr.

Rupee depreciated 11 paise to end at 69.55/$.

For the week, Sensex and Nifty fell 0.6% and 0.8% respectively, extending the  losing streak to third consecutive week.

OUTLOOK

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

In Friday's report we had said that a crossover of 11844, the top made Thursday, would confirm a "Buy" on the hourly chart and would pave the way for further upmove.

Nifty, after touching a high of 11828 in the initial trade, slipped to end at 11724 and is set to open flat today.

11844, the top made Thursday, continues to be immediate hurdle to eye, a crossover of which is required for a fresh upmove.

11700, the 67% retracement level of the recent 11625-11844 upmove, is the immediate support to eye below which 11625, the bottom made last week, would be the next important support.