NIFTY EXTENDS CONSOLIDATION WITHIN 10470-10270 RANGE

NIFTY EXTENDS CONSOLIDATION WITHIN 10470-10270 RANGE

WORLD MARKETS

Dow gained 0.5% but S & P 500 and Nasdaq fell 0.1% and 0.2% respectively amid lingering trade war concerns.

Wall Street Journal reported that the White House was looking to impose tariffs on at least $30 billion of Chinese imports. However, White House National Trade Council Director Peter Navarro said that the U.S. could implement tariffs on imports without causing a trade war.

U.S. stocks were also pressured by news that special counsel Robert Mueller had subpoenaed President Donald Trump's businesses.

Dollar index gained about a third of a percent to reach 90.13 after Larry Kudlow, the incoming top White House economic advisor, said he favored a stronger dollar.

European markets gained 0.1%-0.9% with DAX on the top. U.K. decided to expel 23 Russian diplomats, over the chemical weapon attack on Russian former double agent in the English city of Salisbury.

AT HOME

Benchmark indices ended lower by nearly half a percent after a choppy trade. Sensex lost 150 points to settle at 33685 while finished at 10360, down 51 points. BSE mid-cap and small-cap indices however, gained 0.5% and 0.8% respectively. BSE Energy and Oil & Gas indices tumbled 1.2% and 1% respectively, becoming top losers among sectoral indices while Consumer Discretionary Goods & Services and Industrial indices were the top gainers, up 0.3% and 0.2% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 705 cr, 733 cr and 678 cr respectively. DIIs were net buyers to the tune of Rs 256 cr.

Rupee depreciated 11 paise to end at 64.93/$.

India trade deficit in February narrowed to a five-month low of $12 bn from $16.3 bn in January. Exports rose 4.5% y-o-y while imports rose 10.4%.

OUTLOOK

Today morning, Asian markets are trading with cuts of upto half a percent and SGX Nifty is suggesting about 40 points lower start for our market.

Nifty is in a consolidation mode after achieving 10470 target on Tuesday. As we have been mentioning 10470 is the two-third retracement level of the 10631-10141 fall, a crossover of which is required for a fresh upmove. If that happens, 10535 and 10631 would be the subsequent targets to eye.

On the way down, 10270 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.