NIFTY APPROACHES 11973 HURDLE

NIFTY APPROACHES 11973 HURDLE

WORLD MARKETS

Dow and S & P 500 fell 0.4% and 0.1% respectively while Nasdaq rose 0.2% amid losses in Home Depot and a reversal in Boeing shares.

Home Depot shares slid 5.4% after disappointing same-store sales. Boeing gave back a 1.5% gain after the National Transportation Safety Board recommended the airplane maker redesign the engine covers on thousands of its 737 planes.

Brent futures fell $1.67, or 2.7%, to $60.76 a barrel while WTI crude dropped $1.84, or 3.2%, to settle at $55.21.

In Europe, FTSE and DAX gained 0.2% and 0.1% respectively while CAC fell 0.4%

During a meeting with the president’s Cabinet, Trump threatened to increase the tariff on Chinese goods if a deal between Washington and Beijing is not reached.

AT HOME

Senex and Nifty climbed half a percent to close at the highest level since 7th November. Sensex added 185 points to settle at 40469 while Nifty finished at 11940, up 55 points. BSE mid-cap index flat while small-cap index rose 0.3%. BSE Telecom index soared 8.5%, becoming top gainer among the sectoral indices, followed by 2.4% higher Energy index. Metal and Auto indices were the top losers, down 0.9% and 0.7% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 915 cr, 63 cr and 215 cr respectively. DIIs were net buyers to the tune of Rs 262 cr.

Rupee appreciated 14 paise to end at 71.70/$.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.2%-0.6% and SGX Nifty is suggesting about 20 points lower start for our market.

In yesterday's report we had reiterated the view that 11973, the top made on Friday, was the immediate hurdle, while, 11802, the low made last week, continued to be immediate support.

Nifty, after touching a low of 11881 in the initial trade, surged to touch a high of 11958 before closing at 11940 and is set to open modestly lower today.

11973 continues to be immediate hurdle, upon crossover of which, 12034, the top made last week, would be the next target to eye. Above 12034, 12103, the top made in June, would be the next major target/resistance to watch.

11802 continues to be immediate support.