NIFTY RETREATS FROM 10942 HURDLE; 10729 CONTINUES TO BE SUPPORT

NIFTY RETREATS FROM 10942 HURDLE; 10729 CONTINUES TO BE SUPPORT

WORLD MARKETS

Dow and S & P fell 0.3% and 0.05% respectively while Nasdaq gained 0.1% as uncertainty over US-China trade and geopolitical tensions weighed on the sentiment.

U.S. Trade Representative Robert Lighthizer hinted that a trade deal was not yet certain, saying that any agreement would need to be more than just purchases by China.

Conflict between India and Pakistan escalated after Pakistan carried our air strike in Kashmir.

A summit between President Donald Trump and North Korean leader Kim Jong Un began with an aim to work on relations between the two nations, along with the denuclearization of the Korean Peninsula.

US oil rose $1.44 or 2.6% to $56.94 a barrel after government data showed an unexpected and sharp drop in U.S. crude stockpiles. Brent rose $1.19, or 1.8%, to $66.40.

European markets, except 0.2% higher Italy, lost 0.2%-0.6%.

AT HOME

After rising a percent in the morning, benchmark indices nosedived a percent and fourth from the top of the day on the back of fresh tension between Indian and Pakistan, to end with modest cuts. Sensex settled at 35905, down 68 points while Nifty lost 28 points to finish at 10806. BSE mid-cap and small-cap indices however managed to gain 0.4% and 0.2% respectively. BSE Capital Goods index climbed 1.1%, becoming top gainer among the sectoral indices, followed by 0.5% higher Industrials and Basic Material indices. Consumer Durable index fell 0.7%, becoming top loser, followed by FMCG, Finance, Telecom, Utilities, Bankex, Metal, Power and Teck indices, which fell 0.4% each.

FIIs net bought stocks, index futures and stock futures worth Rs 423 cr, 456 cr and 387 cr respectively. DIIs were net buyers to the tune of Rs 67 cr.

Rupee depreciated 16 paise to end at 71.22/$.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.1%-0.4% and SGX Nifty is suggesting a marginally lower start for our market.

Readers would recall that after Nifty crossed immediate hurdle of 10723, we had given upside target zone of 10810-10860 above which, we had said, 10942, the 67% retracement level of the 11118-10585 fall, would be the next important resistance to eye.

Yesterday, Nifty, after touching a high of 10940, slipped to 10751 before closing at 10793, getting resisted exactly at the hurdle mentioned by us, vindicating our view.

10729, the low made on Tuesday, continues to be immediate support to eye, upon breach of which, 10585, the low made last week, would be the next important support to eye.

10942 continues to be important hurdle, a crossover of which is required for a fresh upmove.

Q3 GDP data will be out today and is expected to show a growth of 6.8%, down from 7.1% in the previous quarter.

10915, 10942 ARE THE UPSIDE TARGETS/HURDLES; 10729 IMMEDIATE SUPPORT

10915, 10942 ARE THE UPSIDE TARGETS/HURDLES; 10729 IMMEDIATE SUPPORT

WORLD MARKETS

US indices fell 0.1% each after digesting the release of weaker-than-expected Home Depot earnings, mixed economic data and testimony from the top-ranked Federal Reserve official.

Housing starts fell 11.2% in December and reached their lowest level since September 2016. The S&P Case-Shiller index showed home prices rose in December at their slowest pace since August 2015.  On the flip side, Conference Board's consumer confidence index surged to 131.4 in February, easily topping an estimate of 124 and January reading of 121.7.

Fed Chair Powell delivered his testimony to a U.S. Senate committee, where he noted the U.S. economic outlook was "generally favorable" but warned of headwinds from overseas.

US crude rose 2 cents to $55.50 a barrel while Brent rose 45 cents to $65.21.

European markets, except 0.4% lower FTSE, gained 0.1%-0.3%. In UK, May confirmed that lawmakers will be able to vote on her Brexit deal a second time by March 12. If that fails, Parliament will vote on ruling out a no-deal by March 13; and then a possible vote to extend Article 50 by March 14. Sterling rose 0.6% against the dollar as the possibility of a no-deal Brexit was reduced slightly.

AT HOME

After falling nearly a percent and half in the initial trade on the news of airstrike by India on Jaish-E-Mohammed camps, Sensex and Nifty recouped more than half of the losses through the session to end lower by 0.7% and 0.4% respectively. Snesex settled at 35973, down 240 points while Nifty lost 44 points to finish at 10835. BSE mid-cap and small-cap indices fell 0.3% and 0.5% respectively. BSE Realty index tumbled 1.6%, becoming top loser among the sectoral indices, followed by 1% lower Finance index. BSE Auto and Oil & Gas indices were the top gainers, up 0.3% and 0.2% respectively.

FIIs net bought stocks and stock futures worth Rs 1674 and 562 cr respectively but net sold index futures worth Rs 698 cr. DIIs were net sellers to the tune of Rs 720 cr.

Rupee depreciated 8 paise to end at 71.06/$.

India's April-January fiscal gap stood at 7.708 lakh cr which is 121.5% of Rs 6.344 lakh cr FY19 target.

RBI removed Allahabad Bank, Corporation Bank and Dhanlaxmi Bank from prompt corrective action framework.

OUTLOOK

Today morning, Shanghai is flat while Hang Seng and Nikkei are up 0.2% and 0.4% respectively. SGX Nifty is suggesting about 40 points higher start for our market.

In yesterday's report we had said that immediate support on the hourly chart had moved up to 10750, which should serve as the stop-loss for trading longs.

Nifty, after a gap down opening, touched a low of 10729, but did not sustain there and rebounded smartly to 10888 before closing at 10835 and is set to open around yesterday's high.

10915 followed by 10942, which are 61.8% and 67% retracement levels of the entire 11118-10585 fall respectively, continue to be upside targets/hurdles to eye.

10729, the low made yesterday, is the immediate support below which 10585, the low made last week, would be the crucial support to eye.

10915, 10942 ARE NEXT TARGETS; TRAIL STOP-LOSS TO 10750

10915, 10942 ARE NEXT TARGETS; TRAIL STOP-LOSS TO 10750

WORLD MARKETS

US indices rose 0.1%-0.4% after President Trump said he would delay placing additional tariffs on Chinese goods.

Trump said in a series of tweets the U.S. would not add more tariffs on imports from China at the start of March. He cited "substantial progress" in bilateral talks, including intellectual property protection and technology transfer issues. However, he did not state a new deadline.

The Shanghai Composite surged 5.6% yesterday on the back of this development, posting its biggest one-day gain since July 9, 2015.

General Electric surged 6% after announcing it will sell its biopharmaceutical business to Danaher for $21.4 billion.

WTI oil tumbled $1.78, or 3.1% to $55.48 and Brent fell $2.36, or 3.5% to $64.76 after US President Trump, in a tweet, urged OPEC to lower the cost of crude, putting pressure on the Saudi-led group to soften its price-boosting output cuts.

European markets gained 0.1%-0.9% with Italy on the top.

AT HOME

Sensex and Nifty climbed 1% and 0.8% respectively, with Nifty extending the winning streak to fourth consecutive day. Sensex gained 342 points to settle at 36213 while Nifty finished at 10880, up 88 points. BSE mid-cap and small-cap indices gained 0.4% and 0.7% respectively. BSE IT and Teck indices soared 2.5% and 2.1% respectively, becoming top gainers among the sectoral indices while Realty index was the top loser, down 0.9%, followed by 0.1% lower Oil & Gas, Telecom and Energy indices.

FIIs net bought stocks and index futures worth Rs 2134 cr and 297 cr respectively but net sold stock futures worth Rs 902 cr. DIIs were net sellers to the tune of Rs 1746 cr.

Rupee appreciated 16 paise 70.97

Adani Ports tumbled after company's unit, Adani Logistics, announced that it would be acquiring Adani Agri Logistics from Adani Enterprises in an all-cash deal, at a proposed enterprise value of Rs 1,662 crore. This was considered to be expensive and raised questions on capital allocation of the company.

Britannia will replace HPCL in Nifty effective March 29.

OUTLOOK

Today morning, Asian markets are trading mixed with modest changes and SGX Nifty is suggesting a flattish start for our market.

Readers would recall that we had turned our view positive on Nifty after 10723 hurdle was taken out and had said that 10810-10860, the region where 20, 34 and 200 DMAs are placed, would be the next target/resistance zone, upon crossover of which 10915 followed by 10942 which are the 61.8% and 67% retracement levels of the entire 11118-10585 fall, would be next targets/hurdles to eye.

Nifty yesterday touched a high of 10887 and closed at 10880, taking out 10810-10860 resistance zone and moving towards next target of 10915.

As mentioned above, 10915 followed by 10942, which are the 61.8% and 67% retracement levels of the entire 11118-10585 fall, are the next targets/hurdles to eye.

Immediate support on the hourly chart has moved up to 10750, with the stop-loss of which, trading longs should be held on to.

U.S. Federal Reserve Chairman Jerome Powell will testify before Congress today and market participants will look for clues on the Fed's next moves during Powell's appearance.

10810-10860 CONTINUES TO BE RESISTANCE ZONE; 10690 IMMEDIATE SUPPORT

10810-10860 CONTINUES TO BE RESISTANCE ZONE; 10690 IMMEDIATE SUPPORT

WORLD MARKETS

US indices fell 0.4% each on the back of the release of a stream of disappointing economic data.

Durable goods orders for December rose 1.2%. Core capital goods orders fell 0.7% as against expected gain of 0.2%. The Philadelphia Federal Reserve business index fell to negative 4.1 in February — its lowest level since May 2016 — from 17 in January. Economists polled by Dow Jones expected a print of 14. IHS Markit U.S. manufacturing PMI fell to 53.7 in February, a 17-month low, from 54.9 last month. The Conference Board's leading economic index fell for the second straight month in January, marking the index's first back-to-back pullback since early 2016.

US oil fell 20 cents to $56.96 a barrel and Brent eased 13 cents to $66.95.

In Europe, FTSE fell 0.8%, CAC was flat while DAX gained 0.2%. Eurozone flash manufacturing PMI slipped to 49.2 this month, its lowest level since mid-2013. Meanwhile, IHS Markit's flash composite PMI, which is seen as a barometer to economic health, rose to 51.4 in February, from a final reading of 51.0 last month.

AT HOME

Sensex and Nifty gained 0.4% and 0.5% respectively, extending the winning streak to second consecutive day. Sensex settled at 35898, up 142 points while Nifty added 54 points to finish at 10789. BSE mid-cap and small-cap indices climbed 0.9% and 1.1% respectively. Except a 0.3% and 0.2% lower IT and Teck indices respectively, all the BSE sectoral indices ended in green with Basic Material and Metal indices leading the tally, up 1.3% and 1.1% respectively.

FIIs net bought stocks and stock futures worth Rs 55 cr and 301 cr respectively but net sold index futures worth Rs 472 cr. DIIs were net buyers to the tune of Rs 202 cr.

Rupee depreciated 14 paise to end at 71.25/$.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.3%-0.5% and -SGX Nifty is suggesting a flattish start for our market.

After Nifty crossed the immediate hurdle of 10723 on Wednesday, in yesterday's report we had said that 10810-10860, the region where 20, 34 and 200 DMAs are placed, is the next target/resistance zone to eye.

Nifty touched a high of 10808 before closing at 10790 and is set to open flat today.

10810-10860 continues to be important resistance zone to eye upon crossover of which 10915 followed by 10942 which are the 61.8% and 67% retracement levels of the entire 11118-10585 fall, would be next targets/hurdles to eye.

10690 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

10810-10860 IS THE RESISTANCE ZONE; 10646 IMMEDIATE SUPPORT

10810-10860 IS THE RESISTANCE ZONE; 10646 IMMEDIATE SUPPORT

WORLD MARKETS

Nasdaq ended flat while Dow and S & P 500 rose 0.2% each after digesting minutes of the latest Fed meeting.

Minutes from the Fed's January meeting highlighted downside risks, including "the possibilities of a sharper-than-expected slowdown in global economic growth, particularly in China and Europe, a rapid waning of fiscal policy stimulus, or a further tightening of financial market conditions." The central bank did hint in the minutes that it may end its balance-sheet normalization this year.

Brent crude rose 63 cents, or 1%, to $67.08 a barrel while US crude rose 83 cents or 1.5% to $56.92 a barrel, hitting their highest this year.

European markets gained 0.4%-0.8%.

AT HOME

Benchmark indices soared nearly a percent and fifth, with Sensex and Nifty breaking nine day and eight day losing streak respectively. Sensex settled at 35756, up 403 points while Nifty added 131 points to finish at 10735. BSE Mid-cap and small-cap indices rose 0.9% and 0.8% respectively.  All the BSE sectoral indices ended in green with Metal and Basic Materials indices leading the gains, up 3% and 2.2% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 713 cr, 746 cr and 266 cr respectively. DIIs were net buyers to the tune of Rs 113 cr.

Rupee appreciated 23 paise to end at 71.11/$.

Government yesterday approved a Rs 48239 cr capital infusion in 12 public sector banks to help them meet regulatory capital requirements and make growth capital available for the stronger lenders.

OUTLOOK

Today morning, Asian markets are trading with cuts of upto half a percent and SGX Nifty is suggesting about 20 points lower start for our market.

After Nifty achieved the downside target of 10583 on Tuesday, we had asked trailing the stop-loss in short positions to 10723 in yesterday's report.

Nifty yesterday soared to 10752 before closing at 10735, crossing this hurdle.

20, 34 and 200 DMAs, at present, are placed at 10810, 10820 and 10860 respectively, making 10810-10860 and important resistance zone.

10646, the low made yesterday, is the immediate support below which 10585, the low made on Tuesday, would be the crucial support to eye.

NIFTY NEARLY ACHIEVES 10583 TARGET; TRAIL STOP-LOSS TO 10723

NIFTY NEARLY ACHIEVES 10583 TARGET; TRAIL STOP-LOSS TO 10723

WORLD MARKETS

Dow ended flat while S & P 500 and Nasdaq gained 0.2% each after President Trump hinted once again that a closely watched trade deadline in March may be pushed back.

Trump said trade talks with China are going well, adding the current March deadline is not a "magical date."

Walmart rose more than 2% after reporting better-than-expected earnings.

Brent crude slipped 14 cents to $66.36 a barrel while U.S. crude settled up 50 cents at $56.09.

European markets, except 0.1% higher DAX, fell 0.2%-0.6%

AT HOME

It was yet another day of weakness as benchmark indices, after gaining about eight tenth of a percent, plunged more than a percent from the top of the day in late noon trade to end lower by a third of a percent, with Sensex and Nifty extending the losing streak to ninth and eighth consecutive day respectively. Sensex settled at 35352, down 145 points while Nifty lost 36 points to finish at 10604. BSE mid-cap and small-cap indices however gained 0.5% and 0.3% respectively. BSE IT and Teck index tumbled 2.1% and 1.7% respectively, becoming top losers among the sectoral indices while 1.7% and 1.4% higher Realty and Metal indices.

FIIs net sold stocks worth Rs 814 cr but net bought index futures and stock futures worth Rs 774 cr and 164 cr respectively. DIIs were net buyers to the tune of Rs 1164 cr.

Money market was shut yesterday on account of Chhatrapati Shivaji Jayanti.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.2%-1% and SGX Nifty is suggesting about 50 points higher start for our market.

At the risk of repeating, we had turned our view negative on Nifty ever since 10930 support was breached on 8th February and have been advising holding on to short positions with a trailing stop-loss. After 10855-10833 and 10700 targets were achieved, we had given next downside target of 10583, which was the bottom made in January.

Nifty yesterday plunged all the way to 10585 before closing at 10604, nearly achieving 10583 target and vindicating our view.

The benchmark is slated to ope around 10650 today.

10583, the bottom made in January, continues to be important immediate support to eye. If that beaks, a 'Sell" on daily chart would get confirmed. 10533, the low made in December, would be the next downside target if that happens.

10723, the top made yesterday, is now the immediate hurdle, with the stop-loss of which, trading shorts can be held on to.

10583 CONTINUES TO BE IMMEDIATE SUPPORT; 10825 IMMEDIATE HURDLE

10583 CONTINUES TO BE IMMEDIATE SUPPORT; 10825 IMMEDIATE HURDLE

WORLD MARKETS

US markets were shut yesterday for the President's Day holiday.

Brent crude fell 17 cents to $66.08 a barrel while WTI rose 30 cents to $55.89.

European markets ended mixed with modest changes.

The Chinese government yesterday said that the U.S. is attempting to curtail its technology development by claiming that Chinese mobile network gear might pose a cybersecurity threat to foreign countries which adopt the equipment.

Also, Huawei founder Ren Zhengfei told the BBC that the arrest of his daughter and chief financial officer of the company, Meng Wanzhou, was a "politically motivated act."

AT HOME

After gaining about a third of a percent at the open, benchmark indices tumbled a percent from the top of the day to end lower by eight tenth of a percent, with Sensex and Nifty extending the losing streak to eighth and seventh consecutive day respectively. Sensex lost 310 points to settle at 35498 while Nifty finished at 10640, down 83 points. Sensex and Nifty closed at the lowest level since 24th December and 11th December respectively, marking a 2-month low. BSE mid-cap and small-cap indices fell 1% each. Except 0.9% and 0.6% higher Telecom and Realty indices respectively, all the BSE sectoral indices ended in red with Consumer Durable, Energy and FMCG indices leading the losses, down 1.4% each.

FIIs net sold stocks, index futures and stock futures worth Rs 1240 cr, 434 cr and 71 cr respectively. DIIs were net buyers to the tune of Rs 2337 cr.

Rupee depreciated 12 paise to end at 71.34/$.

OUTLOOK

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

Readers would recall that after Nifty achieved 10855-10833 and 10700 targets, we had given 10583 as next downside target.

Nifty touched a low of 10620 on Friday before rebounding to close at 10724 but slipped yesterday to end at 10640.

10583, the bottom made in January, continues to be important immediate support to eye. If that breaks, next support will come at 10333, which was the bottom made in December.

10825 continues to be immediate hurdle on the hourly chart, a crossover of which is required to take a short-term positive view.

NIFTY REBOUNDS FROM THE VICINITY OF 10583 SUPPORT; 10825 IS THE IMMEDIATE HURDLE

NIFTY REBOUNDS FROM THE VICINITY OF 10583 SUPPORT; 10825 IS THE IMMEDIATE HURDLE

WORLD MARKETS

US indices climbed 0.6%-1.7% on Friday amid increasing hopes for a U.S.-China trade deal.

Economic data was mixed. Industrial production for January fell 0.6% as against expectation of an increase of 0.3%. Consumer sentiment data for February, meanwhile, topped expectations.

US crude rose $1.18 or 2.2% to 3-month high of $55.59 and Brent climbed $1.68 or 2.6% to $66.25, its highest this year, bolstered by OPEC-led supply cuts and the announcement of a higher-than-expected cut by Saudi Arabia.

European markets gained 0.6%-1.9%.

Earlier, Chinese inflation data for January missed expectations, coming in at 1.7% y-o-y, lower than expected 1.9%, which was also the figure for December.

For the week, Dow and Nasdaq gained 3.1% and 2% respectively, extending the winning streak to eighth consecutive week. S & P 500 rose for the seventh week out of eight, up 2.5%. European markets gained 2.3%-3.9%.

U.S. President Trump, speaking at a White House news conference, said Washington was closer than ever before to "having a real trade deal" with Beijing and that he would be "honored" to remove tariffs if an agreement can be reached. He added, however, that the talks were "very complicated." Trump also reiterated the possibility of extending the Mar. 1 deadline.

AT HOME

After plunging a percent and fifth in the first half, benchmark indices rebounded a percent from the bottom of the day in second half to end with cuts of a fifth of a percent. Sensex settled at 35808, down 67 points while Nifty lost 21 points to finish at 10724. BSE Mid-cap and small-cap indices fell 1.2% and 0.8% respectively. BSE Metal and Healthcare indices tumbled 2.3% each, becoming top losers among the sectoral indices while Utilities and Power indices were the top gainers, up 2.6% and 2.2% respectively.

FIIs net sold stocks and index futures worth Rs 966 cr and 1055 cr respectively but net bought stock futures worth Rs 131 cr. DIIs were net buyers to the tune of Rs 853 cr.

Rupee depreciated 6 paise to end at 71.22/$.

For the week, Sensex and Nifty fell 2% each, breaking two-week winning streak.

India’s trade deficit in January widened to $14.73 billion from $13.08 bn in December.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.6%-1.6% and SGX Nifty is suggesting about 25 points higher start for our market.

At the risk of repeating, we have been negative on Nifty after immediate support of 10930 was breached on 8th February. After downside target of 10855-10833 was achieved, we had said that 10700, where an upward sloping trendline adjoining bottoms made in December and January was place, was the next support below which, 10583, the low made in January, would be the next target to eye.

Nifty, on Friday, after achieving the 10700 level, plunged all the way to 10620, from where it rebounded sharply to end at 10724.

10825 is now the immediate hurdle on the hourly chart, a crossover of which is required to take a positive view on the benchmark.

10583, the bottom made in January, continues to be important support to eye.

NIFTY NEARLY ACHIEVES 10700 TARGET; 10880 IS THE IMMEDIATE HURDLE

NIFTY NEARLY ACHIEVES 10700 TARGET; 10880 IS THE IMMEDIATE HURDLE

WORLD MARKETS

Dow and S & P 500 fell 0.4% and 0.3% respectively but Nasdaq gained 0.1% following the release of much weaker-than-expected retail sales data.

Retail sales fell 1.2% in December, marking their biggest monthly drop since September 2009.

Following the data, the benchmark 10-year rate fell to 2.66% from 2.69%.

On to the US-China trade negotiations, media reports suggested that Trump may be willing to extend the deadline by 60 days.

US crude rose 51 cents or 1% to $54.41/$ a barrel while Brent rose 82 cents, or 1.3%, to $64.43.

European markets, except 0.1% higher FTSE, fell 0.2%-0.8%.

Earlier, China reported exports advanced 9.1% in January on a year earlier, defying expectations, while imports slipped 1.5%.

AT HOME

Sensex and Nifty ended lower by four tenth of a percent after a choppy session, extending the losing streak to sixth and fifth consecutive day respectively. Sensex lost 158 points to settle at 35876 while Nifty finished at 10746, down 47 points. BSE mid-cap and small-cap indices however gained 0.5% and 0.2% respectively. BSE Oil & Gas and Telecom indices tumbled 2.1% and 2% respectively, becoming top losers among the sectoral indices while Industrials index and Bankex were the top gainers, up 0.8% each.

FIIs net sold stocks, index futures and stock futures worth Rs 250 cr, 3600 cr and 500 cr respectively. DIIs were net buyers to the tune of Rs 1225 cr.

Rupee depreciated 36 paise to end at 71.16/$.

Yes Bank soared after reporting that The RBI did not find any divergences in the asset classification and provisioning by Yes Bank for the fiscal year ending 2018.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.2%-1% but SGX Nifty is suggesting about 20 points higher start for our market.

At the risk of repeating, we have been negative on Nifty after immediate support of 10930 was breached on last Friday. We had given downside targets of 10955-10933, followed by 10700.

Nifty yesterday plunged to 10718 before closing at 10746, coming in very close to 10700 target and vindicating our view.

10700, where an upward sloping trendline adjoining bottoms made in December and January is placed, continues to be important immediate support to eye. If that breaks, 10583, the low made in January, would be the next support to eye.

10880 is the immediate hurdle on the hourly chart.

NIFTY ON TRACK TO ACHIEVE 10700 TARGET; TRAIL STOP-LOSS TO 10925

NIFTY ON TRACK TO ACHIEVE 10700 TARGET; TRAIL STOP-LOSS TO 10925

WORLD MARKETS

US indices gained 0.1%-0.5% on hopes of a possible U.S.-China trade deal.

The South China Morning Post reported that China's Xi will meet with U.S. Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer on Friday

US crude rose 80 cents or 1.5% to $53.90 a barrel while Brent added $1.19, or 1.9% to reach $63.61.

European markets gained 0.4%-0.9%. U.K. consumer prices rose at an annual rate of 1.8% in January, following a 2.1% increase in previous month. Euro zone industrial production fell 0.9% month-on-month and 4.2% year-on-year in December.

AT HOME

After gaining about half a percent at the open, benchmark indices nosedived nearly a percent from the top of the day to end lower by a third of a percent, with Sensex and Nifty extending the losing streak to fifth and fourth consecutive day respectively. Sensex lost 119 points to settle at 36034 while Nifty finished at 10793, down 37 points. BSE mid-cap and small-cap indices fell 0.5% and 0.4% respectively. BSE Oil & Gas and Capital Goods indices were the top losers among the sectoral indices, down 2.1% and 1.8% respectively while IT and Teck indices gained the most, up 0.7% and 0.5% respectively.

FIIs net sold stocks and stock futures worth Rs 677 cr and 301 cr respectively but net bought index futures worth Rs 397 cr. DIIs were net buyers to the tune of Rs 713 cr.

Rupee depreciated 10 paise to end at 70.80/$.

OUTLOOK

Data from Japan showed gross domestic product grew at an annualized rate of 1.4% in the October to December period last year.

Today morning, Nikkei is up 0.1% while Hang Seng and Shanghai are modestly lower. SGX Nifty is suggesting about 40 points lower start for our market.

Readers would recall that we turned our view on Nifty negative after immediate support of 10930 was breached. We had given downside target zone of 10855-10833 where 200 and 34-DMAs were placed and after these targets were met, we have been working with 10700 as the next support.

Nifty, yesterday plunged to 10772 before closing at 10793 and is set to open near 10750 today.

10700, where an upward sloping trendline adjoining bottoms made in December and January is placed, continues to be next downside target to eye.

Immediate hurdle on the hourly chart has moved lower to 10925, with the stop-loss of which, trading shorts can be held on to.

ONGC, Ashok Leyland and Jet Airways will report their quarterly earnings today.