NIFTY MOVES TOWARDS 10033 TARGET AFTER ACHIEVING 10141; 10315 IMMEDIATE HURDLE

NIFTY MOVES TOWARDS 10033 TARGET AFTER ACHIEVING 10141; 10315 IMMEDIATE HURDLE

WORLD MARKETS

US indices nosedived 1.4%-1.8% with Nasdaq posting its worst day since February 8 as decline in Facebook pressured the technology sector.

Facebook plunged 6.8%, its worst fall since March 2014, after reports said political analytics firm Cambridge Analytica was able to collect data on 50 million people's profiles without their consent.

Also pressuring market were twitter posts by Trump on Sunday morning where he accused special counsel Robert Mueller of hiring "hardened Democrats" to probe alleged ties between his 2016 presidential campaign and Russia

Sterling firmed after the U.K. and the European Union reached an agreement on the transition period, according to which the former will stay in the group until the end of 2020.

European markets tumbled 1%-1.7%. Basic resources stocks led the drop amid heightened fears of a trade war.

WTI crude fell 28 cents to $62.06 a barrel.

AT HOME

Sensex and Nifty slipped 0.8% and 1% respectively, extending the losing streak to fourth straight day and closing at the lowest level since 6th December, 2017, marking a 3-1/2 month low. Sensex lost 253 points to settle at 32923 while Nifty finished 101 points lower at 10094. BSE mid-cap and small-cap indices nosedived 1.6% and 2% respectively. All the BSE sectoral indices ended in red with Telecom and Realty indices leading the tally, down 3.4% and 3% respectively.

FIIs net bought stocks worth Rs 292 cr but net sold index futures and stock futures worth Rs 31 cr and 324 cr respectively. DIIs were net sellers to the tune of Rs 192 cr.

Rupee depreciated 24 paise to end at 65.18/$, a four-month low.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.2%-0.8% and SGX Nifty is suggesting about 25 points lower start for our market.

Readers would recall that after Nifty broke immediate support of 10270, we had given downside target of 10140 and had also said that in the event of 10140 not holding, next support will come around 10033, where the bottom made in December 2017, is placed.

Nifty yesterday plunged to 10075 before closing at 10094, achieving the first target and moving towards the second.

10033 continues to be next important support to eye. Below 10033, next meaningful support will come around 9800, where the trendline adjoining bottoms made in February and December 2016, is placed.

Meanwhile, immediate resistance on the hourly chart has moved to 10315, with the stop-loss of which, existing shorts should be held on to.