11866-12000 IS THE IMMEDIATE RANGE

11866-12000 IS THE IMMEDIATE RANGE

WORLD MARKETS

US indices fell 0.2%-0.4%, pressured by declines in tech and bank shares.

US President Trump said on Tuesday that he was holding up a trade deal with China and had no interest in moving ahead unless Beijing agreed on as many as five “major points.” China too vowed a tough response if Washington insists on escalating trade tensions.

U.S. consumer prices rose just 0.1% last month, matching estimate. Core inflation, which strips out volatile components like food and energy prices, also rose 0.1%.

The benchmark 10-year yield fell to 2.12%.

US oil plunged $2.13 or 4% to $51.15 and Brent fell $2.32 or 3.7% to $59.97, after data from EIA showed U.S. commercial crude inventories rose by 2.2 million barrels in the week through June 7, much higher than the expected 4,81,000 figure.

European markets eased 0.3%-0.7%.

Earlier, Hong Kong’s Hang Seng index fell 1.73%, amid violent clashes between protesters and riot police over a controversial extradition bill.

AT HOME

After falling about eight tenth of a percent, benchmark indices recouped some of the lost ground in last half an hour to end lower by half a percent, breaking 3-day winning streak. Sensex lost 193 points to settle at 39756 while Nifty finished at 11906, down 59 points. BSE mid-cap and small-cap indices fell 0.8% and 0.5% respectively. Except 0.5% and 0.01% higher Metal and FMCG indices, all the BSE sectoral indices ended in red with Realty and Telecom indices leading the losses, down 1.9% and 1.6% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 1050 cr, 173 cr and 183 cr respectively. DIIs were net buyers to the tune of Rs 271 cr.

Rupee appreciated 10 paise to end at 69.34/$.

CPI rose to a 7-month high of 3.05% in May, up from 2.99% in April. The core CPI inflation eased to 4.23% compared with 4.55%. IIP growth rose to a six-month high of 3.4% in April, up from 0.4% in March.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.25-0.6% and SGX Nifty is suggesting a flattish start for our market.

In yesterday's report we had said that 11871, the low made on Monday, was the immediate support. Nifty, after touching a low of 11866, rebounded to end at 11906 and is likely to open flat today.

11866, the low made yesterday, which was very close to our indicated 11871 level, is the immediate support to eye. If that breaks, 11770, the bottom made last week, would be the important support.

12000, the top made on Tuesday, continues to be immediate hurdle, upon crossover of which, 12103, the top made last week, would be the next target.