10942, 10729 CONTINUE TO BE RESISTANCE, SUPPORT TO EYE

10942, 10729 CONTINUE TO BE RESISTANCE, SUPPORT TO EYE

WORLD MARKETS

US indices fell 0.3% each despite stronger-than-expected economic data as abrupt end to the summit between U.S. President Donald Trump and North Korean leader Kim Jong Un weighed on sentiment.

The U.S. economy grew at an annualized rate of 2.6% in the fourth quarter 2018, beating the estimated figure of 2.2%.

A summit between Trump and North Korean leader Kim Jong Un in Vietnam was cut short after the latter asked for an end to sanctions.

White House economic advisor Larry Kudlow, in a media interaction, said both the U.S. and China are making "fantastic" progress in their negotiations. Treasury Secretary Steven Mnuchin said "We have made a lot of progress," but added that a deal "is not yet done."

US crude rose 28 cents to $57.22 a barrel but Brent fell 36 cents to $66.03.

Earlier, data from China showed factory activity numbers dropped to a three-year low in February — raising fears about economic activity in the world's second-largest economy.

European markets, except 0.5% lower FTSE, gained 0.2%-0.8%.

AT HOME

Benchmark indices ended lower by 0.1% after a rangebound but choppy trade, extending the losing streak to third straight day. Sensex settled at 35867, down 38 points while Nifty lost 14 points to finish at 10792. BSE mid-cap and small-cap indices however gained 0.5% and 0.9% respectively, extending the outperformance. BSE Consumer Durable and Oil & Gas indices climbed 1.5% and 1.3% respectively, becoming top gainers among the sectoral indices while IT and Teck indices were the top losers, down 1% and 0.9% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 3211 cr, 1215 cr and 609 cr respectively. DIIs were net sellers to the tune of Rs 5241 cr.

Rupee appreciated 50 paise to end at 70.72/$.

For the February derivative series, Nifty ended lower by 0.4%.

India's GDP growth for the October-December quarter slowed to 6.6% from 7% in the previous quarter, marking the slowest growth in five quarters. Full year GDP growth forecast has been trimmed to 7% as compared to 7.2% in FY18.

OUTLOOK

Today morning, Nikkei is up 0.8% while Hang Seng and Shanghai are up 0.3% each. SGX Nifty is suggesting about 20 points higher start for our market.

After retreating from our indicated 10942 hurdle on Wednesday, Nifty yesterday consolidated by trading in a narrow range and closing modestly lower at 10792.

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, the 67% retracement level of the 11118-10585 fall, continues to be immediate hurdle, a crossover of which is required for a fresh upmove. If that happens, 11118, the top made on 7th February, would be the next target.

Auto companies will report February sales data today.