10470-10270 CONTINUES TO BE IMMEDIATE RANGE

10470-10270 CONTINUES TO BE IMMEDIATE RANGE

WORLD MARKETS

Dow and S & P 500 tumbled 1% and 0.6% respectively while Nasdaq lost 0.2% amid concerns over heightened trade tensions.

Boeing dropped 2.5%, contributing the most to the Dow's decline, after a report said President Trump wishes to slap $60 billion of tariffs on Chinese goods and markets feared China could target the aerospace giant in retaliation.

Trump yesterday tweeted "We cannot keep a blind eye to the rampant unfair trade practices against our Country!"

US retail sales declined for a third straight month as against the expectation of a 0.3% rise. Producer price index rose 0.2% last month. Core PPI — which excludes volatile food, energy and trade service prices — rose 0.4%. 

Yields on 10-year treasurys fell to 2.817%, their lowest level since early March.

US oil rose 25 cents to $60.96 and Brent rose 28 cents to 64.92/$.

European markets, except a 0.1% higher DAX, ended with modest cuts. Basic resources gained on the back of strong industrial production data in China.  Euro zone industrial production dropped in January by 1% month-on-month — more than markets were expecting, mainly due to a lower energy output.

AT HOME

After falling just under a percent in the first half, benchmark indices recouped most of the losses in second half to end just modestly lower. Sensex settled 21 points down at 33836 while Nifty finished at 104111, down 16 points. BSE mid-cap and small-cap indices gained 0.3% and 0.1% respectively. BSE Oil & Gas and Telecom indices tumbled 0.9% each, becoming top losers among sectoral indices while Bankex was the top gainer, up 0.6%, followed by 0.3% higher Consumer Durable index.

FIIs net sold stocks, index futures and stock futures worth Rs 259 cr, 218 cr and 309 cr respectively. DIIs were net sellers to the tune of Rs 432 cr.

Rupee appreciated 7 paise to end at 64.82/$.

In a blow to the BJP ahead of the 2019 general elections, the party lost bypolls to all three Lok Sabha seats it contested, including its bastion Gorakhpur, and Phulpur in Uttar Pradesh, besides Araria in Bihar.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.2%-0.8% and SGX Nifty is suggesting about 50 points lower start for our market.

Readers would recall that we had given target of 10470, which is the two-third retracement level of the recent 10631-10141 fall. Nifty, after achieving the same on Tuesday, slipped to 10336 yesterday before closing at 10410 and is set to open around 10350 today.

10270, as mentioned yesterday, continues to be immediate support, a breach of which would generate a "sell" on the hourly chart and would pave the way for further correction. 10140 would be the next major support in that case.

On the way up, a decisive crossover of 10470 is required for a fresh upmove and if that happens, 10535 followed by 10631, would be the subsequent targets to eye.