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.