10745 CONTINUES TO BE IMMEDIATE HURDLE, 10550 MAJOR SUPPORT

10745 CONTINUES TO BE IMMEDIATE HURDLE, 10550 MAJOR SUPPORT

WORLD MARKETS

US indices fell 0.5%-0.9% in shortened trading session as technology stocks fell sharply.

Equities were als nervous ahead of July 6 when U.S. tariffs on $34 billion in Chinese products are set to kick in which is widely expected to trigger a tit-for-tat response from Beijing.

Semiconductor maker Micron plunged 5.5% after media reports suggested that a Chinese court temporarily prohibited the sale of Micron chips in the local market.

Earlier, enrgy stocks contributed to higher start after West Texas Intermediate oil futures broke above $75 per barrel for the first time since November 2014, but pared gains to end at $74.14, up 20 cents.

Chinese yuan dropped to its lowest levels against the dollar in around 11 month.

European markets gained 0.6%-1.6%

AT HOME

After starting on a weak note, Sensex and Nifty rebounded more than half a percent from the bottom of the day to end higher by 0.3% and 0.4% respectively. Sensex added 114 points to settle at 35379 while Nifty finished at 10700, up 43 points. BSE Mid-cap and small-cap indices gained 0.7% and 0.4% respectively. BSE Healthcare and IT indices climbed 1.8% and 1.1% respectively, becoming top gainers among the sectoral indices while Metal index and Bankex were the top losers, down 0.3% and 0.2% respectively.

FIIs net sold stocks worth Rs 1043 cr but net bought index futures and stock futures worth Rs 47 cr and 481 cr respectively. DIIs were net buyers to the tune of Rs 279 cr.

Rupee appreciated 22 paise to end at 68.57/$.

OUTLOOK

Today morning, Asian markets are trading flat to modestly lower and SGX Nifty is suggesting a flattish start for our market.

After Nifty rebounded from the vicinity of 10550 support last week, we had said that 10745, where 20-DMA is placed, is the immediate hurdle, a crossover of which is required for a further upmove.

Nifty closed at 10657 after testing a high of 10736 on Monday but rebounded to end at 10700 yesterday.

10645 continues to be immediate hurdle above which 10840 would be the next target.

10605, the low made yesterday, is the immediate support below which 10550 would be the crucial support to eye.

US markets will be closed today for Independence Day.