NIFTY RETREATS FROM 9710 HURDLE; 9560 IMPORTANT SUPPORT

NIFTY RETREATS FROM 9710 HURDLE; 9560 IMPORTANT SUPPORT

WORLD MARKETS                             

Dow and S & P 500 ended marginally in the red while Nasdaq was a tad higher as healthcare stocks gained while financials fell.

Healthcare stocks have been rising as Senate is set to consider health care bill next week which seeks to repeal and replace obamacare. The bill would continue to offer reimbursements to health insurance companies for subsidies for at least two years. It would also do away with current Obamacare taxes and would phase out Medicaid's expansion program.

Crude rebounded from a 10-month low with Brent up 40 cents at $45.22 a barrel and US crude up 21 cents at $42.74.

In Europe, FTSE lost 0.1% while DAX and CAC gained 0.2% each. Italy fell 0.7%.

AT HOME

After gaining two-third of a percent in the morning session, benchmark indices nosedived in noon trade to end flat. Sensex settled at 31291, up 7 points while Nifty lost 4 points to finish at 9630. Broader market underperformed, with BSE mid-cap and small-cap indices falling 0.6% each. BSE Oil & Gas and Realty indices tumbled 1.8% and 1.7% respectively, becoming top losers among sectoral indices while Bankex and Finance indices were the top gainers, up 0.2% each.

FIIs net bought stocks and index futures worth Rs 193 cr and 89 cr but net sold stock futures worth Rs 101 cr. DIIs were net sellers to tune of Rs 455 cr.

Rupee depreciated 7 paise to end at 64.59/$.

Indian IT services industry body National Association of Software and Services Companies (Nasscom) today said it expects software export growth to slow to 7-8% in the current financial year from 8.6% a year earlier.

OUTLOOK

Today morning, Asian markets are trading mixed with modest changes and SGX Nifty is suggesting a flattish start for our market.

Readers would recall that we have been saying that 9710, the top made on 6th June, is the important hurdle, a crossover of which is required for a fresh upmove.

Yesterday, Nifty, after touching a high of 9699, plunged sharply to end at 9630.

9560, the bottom made last week, which now roughly coincides with 34-DMA, is the important support, a breach of which will also confirm a lower-top lower-bottom on the daily chart and would pave the way for further correction.

Traders are advised to wait for the breach of 9710-9560 range on either side for taking a fresh view.

Two-day EU Summit begins today with focus on two objectives: strengthening the EU and protecting its citizens. Therefore key topics set to arise include terrorism, security, globalization and climate change. British Prime Minister Theresa May is expected to make an appearance at the summit, where she is likely to inform other leaders of the U.K.'s intentions when it comes to exiting the political-economic bloc.