10200 IS IMMEDIATE SUPPORT; 10740 IMMEDIATE HURDLE

10200 IS IMMEDIATE SUPPORT; 10740 IMMEDIATE HURDLE

WORLD MARKETS

Dow gained 0.2%, while S & P 500 ended little changed and Nasdaq fell 0.7% yesterday with the Dow breaking two-day losing streak while S & P 500 and Nasdaq fell for the third consecutive day.

US crude, after touching a low of $73.07, recovered to close 5 cents lower at $74.29 while Brent crude, after touching a low of $82.66, rebounded to end at $83.73, down 43 cents compared to previous close.

European markets fell 1.1%-2.4% with Italy topping the losses as Italian government bond yields hit highest level in 4-1/2 years amid renewed fears over Italy's budget plans. The EU reiterated concerns over Italy's budget plans over the weekend. In response, Italy said it would "not retreat" from its current spending plans.

AT HOME

Benchmark indices managed to end higher by three tenth of a percent after a volatile session to break three-day losing streak. Sensex settled at 34474, up 97 points while Nifty added 32 points to finish at 10348. BSE mid-cap and small-cap indices however ended with cuts of 2% each. BSE Energy and Oil & Gas indices soared 4.4% and 3.3% respectively, becoming top gainers among the sectoral indices while Metal and Realty indices plunged 3.2% and 3.1% respectively, becoming top losers.

FIIs net sold stocks worth Rs 1805 cr but net bought index futures and stock futures worth Rs 918 cr and 1334 cr respectively. DIIs were net buyers to the tune of Rs 1974 cr.

Rupee depreciated 29 paise to end at fresh record low of 74.06/$.

OUTLOOK

Today morning, Nikkei is down a percent while Hang Seng and Shanghai are little changed. SGX Nifty is suggesting about 25 points lower start for our market.

In yesterday's report we had said that "10261, the bottom made on Friday, coincides with a trendline adjoining bottoms made in September 2017 and March 2018" and that upon sustained trading below 10261, 9951, the bottom made in March, would be the next meaningful support to eye.   

Nifty, after touching a low of 10198, rebounded in last hour to end at 10348, holding the trendline support mentioned above on closing basis.

10198, the bottom made yesterday, is now the immediate support below which 9951 would be the next major support to eye.

Immediate hurdle on the hourly chart is placed at 10740.