10729 CONTINUES TO BE IMMEDIATE SUPPORT; 10942 IMMEDIATE HURDLE

10729 CONTINUES TO BE IMMEDIATE SUPPORT; 10942 IMMEDIATE HURDLE

WORLD MARKETS

After opening higher on news that a trade deal between the U.S. and China was nearing completion, US indices slipped during the session to end with cuts of 0.2%-0.8%.

Construction spending dropped 0.6% in December as against expectation of gain of 0.2%.

US oil rose 79 cents or 1.4% to $56.59 per barrel while Brent was up 60 cents at $65.67.

In Europe, DAX fell 0.1% while FTSE and CAC gained 0.4% each.

AT HOME

Benchmark indices gained about 0.6% each on Friday to break three-day losing streak. Sensex added 196 points to settle at 36063 while Nifty finished at 10863, up 71 points. BSE mid-cap and small-cap indices soared 1.3% and 2.1% respectively.  Except 1.3% lower Telecom index, all the BSE sectoral indices ended in green with Basic Material index leading the tally, up 1.7%, followed by 1.6% higher Industrials and Metal indices.

FIIs net bought stocks and index futures worth Rs 198 cr and 170 cr respectively but net sold stock futures worth Rs 140 cr. DIIs were net buyers to the tune of Rs 117 cr.

Rupee depreciated 19 paise to end at 70.91/$.

For the week, Sensex and Nifty gained 0.5% and 0.7% respectively, extending the winning streak to second consecutive week.

India's Nikkei Manufacturing Purchasing Managers' Index, increased to a 14-month high of 54.3 in February from January's 53.9.

February GST mop-up stood at Rs 97200 cr Vs Rs 1.025 lakh cr in January.

TVS Motors posted 3% rise at 2.99 lakh units. Eicher Motor’s Royal Enfield sales were down 14% at 62630 units. Hero motocorp sales fell 2% to 6.17 lakh units.

OUTLOOK

U.S. President Trump has said that he intends to end India’s preferential trade treatment under a program that allows $5.6 billion worth of Indian exports to enter the United States duty free as "India has not assured the United States that it will provide equitable and reasonable access to the markets of India,”.

Due to this, SGX Nifty is trading around 10830, suggesting about 85 points lower start when compared to Friday's close of Nifty futures. Other Asian markets are trading with cuts of 0.3%-0.6%.

For past couple of sessions we have been mentioning that 10729, the low made on Tuesday, continues to be immediate support while 10942, the 67% retracement level of the 11118-10585 fall, continues to be immediate hurdle.

Nifty, on Friday closed at 10863 but is set to open below 10800 today.

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

10942, as mentioned above, continues to be immediate hurdle, a crossover of which is required for a fresh upmove.