11700 BELOW 11802; 11950 CONTINUES TO BE IMMEDIATE HURDLE

11700 BELOW 11802; 11950 CONTINUES TO BE IMMEDIATE HURDLE

WORLD MARKETS

US market ended near the flat line, monitoring developments related to US-China trade deal.

Chinese Ministry of Commerce spokesman said that both countries are holding “in-depth” discussions about a phase one deal, but noted that the rolling back of some tariffs is key to reaching an agreement. Additionally, U.S. senators pushed for a vote on a Hong Kong rights bill as protests there escalate.

Weekly jobless claims reached 225,000 last week, their highest level since June. U.S. producer prices had their biggest gain in six months in October.

Cisco Systems dropped 7.3% on disappointing guidance.

Brent futures fell 7 cents to settle at $62.30 per barrel, while West Texas Intermediate crude futures fell 35 cents, to settle at $56.77.

European markets fell 0.1%-0.8%. German GDP grew by 0.1% in the third quarter, exceeding the -0.1% contraction expected and narrowly avoiding a technical recession. Euro zone economy grew by 0.2% q-o-q in the third quarter, in line with expectations and marking a 1.2% increase y-o-y.

AT HOME

Sensex and Nifty ended higher by 0.4% and 0.3% after a choppy session. Sensex added 170 points to settle at 40286 while Nifty finished at 11872, up 32 points. BSE mid-cap index rose 0.1% while small-cap index ended flat. BSE IT and Consumer Durables indices gained 1.1% and 0.9% respectively, becoming top gainers among the sectoral indices while Telecom index tumbled 2.8%, becoming top loser, followed by 2% lower Metal index.

FIIs net sold stocks and index futures worth Rs 562 cr and 442 cr respectively but net bought stock futures worth Rs 465 cr. DIIs were net buyers to the tune of Rs 83 cr.

Rupee appreciated 12 paise to end at 71.97/$.

OUTLOOK

Today morning, Nikkei and Hang Seng are up about seven tenth of a percent while Shanghai is little changed. SGX Nifty is suggesting about 25 points higher start for our market.

After Nifty broke 11850 support on Wednesday, in yesterday's report we had said that 11700 was the next meaningful support on the way down and had advised holding on to short positions with the stop-loss of 11950.

The benchmark, after touching a low of 11802 in the initial trade, rebounded to end at 11872 and is set to open higher today.

11802, the low made yesterday, also coincides with 20-DMA and hence is the immediate support to eye. IF that breaks, 11700, would be next major support to eye.

11950 continues to be immediate hurdle, with the stop-loss of which, trading shorts can be held on to.