NIFTY EXTENDS CONSOLIDATION WITHIN 10700-10830 RANGE

NIFTY EXTENDS CONSOLIDATION WITHIN 10700-10830 RANGE

WORLD MARKETS

US indices gained 0.1%-0.4% amidst uncertainties over the US trade policy.

After conflicting statements from treasury Secretary Steven Mnuchin and Peter Navarro, a trade advisor to Trump on slapping investment restrictions, White House press secretary Sarah Sanders, in a press briefing, said "a statement would go out that targets all countries that are trying to steal our technology, and we expect that to be out soon.”

Energy stocks rose as oil soared after the U.S. State Department said companies would be subject to sanctions if they did not completely halt imports of Iranian oil by November. WTI rose $2.45 or 3.6% to $70.53, crossing the $70 level for the first time in two months and Brent was up $1.60 or 2.1% at $76.33 a barrel.

General Electric jumped 8% after the company revealed a plan to spin off its health-care business and sell its stake in Baker Hughes.

European markets ended mixed with modest changes.

AT HOME

Benchmark indices ended little changed after a roller-coaster trading session. Sensex settled at 35490, up 20 points while Nifty added 7 points to finish at 10769. BSE mid-cap and small-cap indices fell 0.3% and 0.6% respectively. BSE Telecom and FMCG indices added 1.1% and 0.8% respectively, becoming top gainers among the sectoral indices while Energy and Power indices were the top losers, down 1.2% and 0.8% respectively.

FIIs net sold stocks and index futures worth Rs 538 cr and 118 cr respectively but net bought stock futures worth Rs 301 cr. DIIs were net buyers to the tune of Rs 238 cr.

Rupee depreciated 12 paise to end at 68.24/$.

OUTLOOK

Today morning, Nikkei is down 0.4%, Shanghai is little changed and Hang Seng is up 0.3%. SGX Nifty is suggesting about 25 points lower start for our market.

Nifty has been in a consolidation over last nine sessions. 10700 on the lower side and 10830 on the way up are the boundaries of this consolidation phase, a crossover of which, on either side, is required to take a fresh directional view on Nifty.

If 10700 gives way, 10550, the bottom made in June, would be the next important support. Upon decisive crossover of 10830, 10930, the top made in May, would be the next target.