10700 LANDS SUPPORT AGAIN; 10930 ABOVE 10837

10700 LANDS SUPPORT AGAIN; 10930 ABOVE 10837

WORLD MARKETS

Dow and S & P 500 gained 0.5% and 0.2% respectively while Nasdaq fell 0.3% on Friday with the Dow snapping eight-day losing streak.

Energy stocks, along with oil rose after OPEC members agreed to only a moderate supply increase. The cartel also declined to say exactly how much more its members would pump. WTI oil surged $3.04, or 4.6% to $68.58 a barrel Brent rose $2.50, or 3.4%, to $75.55 per barrel.

European markets gained 0.5%-1.7%. Auto stocks however fell after Trump threatened a 20% tariff on all car imports from the euro zone, if the region didn't remove duties on U.S. cars.

For the week, US indices fell 0.7%-0.9%. In Europe, FTSE gained 0.6% but DAX and CAC plunged 3.3% and 2.1% respectively. In Asia, Shanghai and Hang Seng nosedived 4.4% and 3.2% respectively while Nikkei fell 1.5%.

On Sunday, Trump on twitter told other countries to end all trade barriers or face a new round of retaliatory measures.

AT HOME

After a weakish start, benchmark indices saw a sustained northward move through the session to end higher by seven tenth of a percent. Sensex added 257 points to settle at 35690 while Nifty finished at 10821, up 80 points. BSE mid-cap and small-cap indices rose 0.5% and 0.1% respectively. BSE Healthcare, Telecom and Finance indices gained 1.3% each, becoming top gainers among the sectoral indices while Energy index was the top loser, down 1.3%, followed by 0.4% lower Oil & Gas index.

FIIs net sold stocks and index futures worth Rs 1343 cr and 67 cr respectively but net bought stock futures worth Rs 66 cr. DIIs were net buyers to the tune of Rs 1106 cr.

Rupee appreciated 14 paise to end at 67.83/$.

For the week, Sensex gained 0.2% while Nifty ended flat.

OUTLOOK

Today morning, Nikkei is down half a percent, Hang Seng is flat while Shanghai is up 0.3%. SGX Nifty is suggesting about 40 points lower start for our market.

In Friday's report we had reiterated the view that 34-DMA, placed around 10700, is the important immediate and support while 10830 was the immediate hurdle to eye.

Nifty, on Friday, after touching a low of 10710 in the initial trade, rebounded to end at 10821 and is set to open below 10800 today.

A crossover of 10837, the top made on Friday, would confirm a "Buy" on the hourly chart and 10930, the top made in mid-May, would be the next target as well as hurdle if that happens.

10700 continues to be important immediate support.