STAY LONG WITH THE STOP-LOSS OF 10640 FOR 10875

STAY LONG WITH THE STOP-LOSS OF 10640 FOR 10875

WORLD MARKETS

US indices fell 0.3%-1% on the back of trade war concerns.

The Trump administration said tariffs on steel and aluminum imports from EU, Canada and Mexico will take effect at midnight Thursday.

The EU responded by saying it would impose countermeasures of its own, while Canada Foreign Minister Chrystia Freeland said the country plans to slap dollar-for-dollar tariffs on the U.S. Mexico said it would impose tariffs on apples, pork bellies, and flat steel imported from the U.S.

In economic news, US consumer spending jumped 0.6% last month, the biggest gain in five months. The personal consumption expenditures (PCE) price index — the Federal Reserve's preferred measure of inflation — rose 0.2% in April.

Oil fell on the back of all-time high U.S. production and expectations of higher OPEC output. WTI fell 1.7% to $67.06.

European markets fell 0.2%-1.4% with DAX leading the losses on reports that Trump hopes to block Germany's luxury carmakers from the U.S. market. On the data front, the euro zone inflation rate jumped to 1.9% in May from 1.2% the previous month.

AT HOME

Benchmark indices soared a percent and fifth on the expiry day of the May derivative series, registering biggest single day gain in nearly two months. Sensex climbed 416 points to settle at 35322 while Nifty finished at 10736, up 122 points. BSE mid-cap and small-cap indices however fell 0.2% and 0.6% respectively. BSE Bankex and Finance indices soared 1.9% and 1.7% respectively, becoming top gainers among the sectoral indices while Consumer Durable index was the top loser, down 1%, followed by 0.8% lower Realty and Healthcare indices.

FIIs net sold stocks and index futures worth Rs 15 cr and 643 cr respectively but net bought stock futures worth Rs 1208 cr. DIIs were net sellers to the tune of Rs 266 cr.

Rupee appreciated 2 paise to end at 67.40/$.

For the May derivative series, Nifty gained 1.1%.

The Indian economy grew 7.7% in January-March, up from 7% growth registered in Q3 and marking the fastest pace in nearly two years. For the entire fiscal year 2017-18, India grew at 6.7%, marginally higher than the 6.6% expansion projected in February and slowest in the last four years.

OUTLOOK

Today morning, Nikkei is up 0.4%, Hang Seng is flat and Shanghai is down 0.4%. SGX Nifty is suggesting about 20 points higher start for our market.

After Nifty rebounded from the vicinity of 10565 support on Wednesday, we had said that 10717, the top made Tuesday, is the immediate hurdle to eye.

Nifty yesterday soared 122 points to settle at 10736, taking out this hurdle.

Next target to eye on the way up is around 10875, where a trendline adjoining tops made in January and May is placed. Immediate support on the hourly chart is placed around 10640, with the stop-loss of

Auto companies will report May sales data today.