10130, 10033 ARE NEXT DOWNSIDE TARGETS; 10410 IMMEDIATE HURDLE

10130, 10033 ARE NEXT DOWNSIDE TARGETS; 10410 IMMEDIATE HURDLE

WORLD MARKETS

After a roller coaster day, Dow ended flat while S & P 500 and Nasdaq gained 0.3% and 0.6% respectively amidst an ongoing debate over tariffs proposed by President Trump.

Stocks open higher on positive news from the Korean Peninsula after South Korea said North Korea was open to talks with the U.S. on denuclearization.

However, indices fell sharply from opening highs after a report said that Trump was convinced Cohn, a top economic advisor to Trump, would leave the administration if the tariffs proposed by the president were implemented. Cohn, a former Goldman Sachs executive, was a champion of the tax cuts implemented by the Trump administration last year.

Stocks recovered later after Sen. David Perdue, a Trump ally, said the president was open to changes on tariffs.

Dollar index fell about 0.6% to 89.40.

Main European markets gained 0.1%-0.4% while Italy surged 1.8%.

AT HOME

Benchmark indices nosedived more than a percent to extend the losing streak to fifth straight day and closing at the lowest level since mid-December. Sensex slipped 430 points to settle at 33317 while Nifty finished at 10249, down 110 points. BSE mid-cap and small-cap indices fell 0.8% and 1.3% respectively. Except 0.1% higher Consumer Durable index, all the BSE sectoral indices ended in red with Realty and Telecom and indices leading the tally, down 2.2% and 1.7% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 620 cr, 511 cr and 709 cr respectively. DIIs were net sellers to the tune of Rs 734 cr.

Rupee appreciated 15 paise to end at 64.95/$.

OUTLOOK

Today morning, Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 15 points lower start for our market.

In yesterday's report we had reiterated the view that Nifty is in a consolidation mode and a breach of 10276, the lower end of this consolidation range, would open up the next leg of downmove.

The benchmark yesterday plunged 110 points to settle at 10249, breaking 10276 support decisively.

200-DMA, placed around 10130, is the next important support to eye below which 10033, the bottom made in December 2017, would be the next crucial support.

10410 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts should be held on to.