10417 CONTINUES TO BE IMMEDIATE SUPPORT; 10575 IMMEDIATE HURDLE

10417 CONTINUES TO BE IMMEDIATE SUPPORT; 10575 IMMEDIATE HURDLE

WORLD MARKETS

US indices fell upto 0.3% after Trump canceled a planned meeting with North Korean Leader Kim Jong Un that had been set to take place in Singapore on June 12.

Trump said participating in the summit would be "inappropriate" given the "tremendous anger and open hostility" displayed by North Korea, which had reportedly suspended direct communication with the U.S. this week.

Also, US Commerce Department said that it started an investigation into whether automobile imports "threaten to impair the national security" of the United States.

US treasuries and gold rose on safe haven buying. The yield on the benchmark 10-year Treasury note fell below the key psychological level of 3%. Gold futures settled at $1304.4 per ounce, up 1.15%.

European markets fell 0.3%-0.9%.

AT HOME

Sensex and Nifty ended with gains of 0.8% and 0.9% respectively after a choppy session. Sensex added 318 points to settle at 34663 while Nifty added 83 points to finish at 10513. BSE mid-cap and small-cap indices however, fell 0.2% and 0.1% respectively. BSE IT and Tech indices soared 2.4% each, becoming top gainers among sectoral indices, followed by 2.2% higher telecom index.

FIIs net sold stocks and index futures worth Rs 702 cr and 371 cr respectively but net bought stock futures worth Rs 390 cr. DIIs were net buyers to the tune of Rs 1481 cr.

Rupee appreciated 8 paise to end at 68.34/$.

GAIL reported in-line-with estimates revenue but operational performance and net profit were a miss. Net profit fell 19.1% q-o-q to Rs 1021 cr while revenue rose 7.1% to Rs 15431 cr. EBIDTA was down 13.9% at Rs 1695 cr and margin contracted 270 bps to 11%.

OUTLOOK

Today morning, Asian markets are trading with modest cuts but SGX Nifty is suggesting a marginally higher start.

In yesterday's report we had mentioned that below 10417, which was the low made on Wednesday, 10325 would be the next downside target and had advised trailing stop-loss in short positions to 10575.

The benchmark surged 83 points to finish at 10513 and is set to open marginally higher today.

10575 continues to be immediate hurdle, a crossover of which would generate a "Buy" on the hourly chart and would pave the way for further upmove. 10675, the 50% retracement level of the recent 10930-10418 fall, would be the next target to eye if that happens.

10417 continues to be immediate support.

Sun Pharma, BoB and Tech Mahindra will report their quarterly earnings today.