11700 CONTINUES TO BE IMMEDIATE HURDLE

11700 CONTINUES TO BE IMMEDIATE HURDLE

WORLD MARKETS

US indices fell 0.6%-0.7%, awaited the start of corporate earnings season later this week.

US crude fell 42 cents to $69.38 a barrel and Brent eased 49 cents to $70.61 as Russia signaled the possible easing of a supply-cutting deal with OPEC.

Trade tensions between the U.S. and the European Union intensified after U.S. Trade Representative Robert Lighthizer on Monday proposed a list of European Union products on which to slap tariffs as retaliation for European aircraft subsidies.

European markets fell 0.3%-0.9%

The International Monetary Fund cut its global growth forecast for this year to 3.3% from previous outlook of 3.5%.

AT HOME

After falling more than half a percent from the initial higher start, benchmark indices soared nearly a percent from the bottom of the day to end higher by six tenth of a percent. Sensex settled at 38939, up 238 points while Nifty added 67 points to finish at 11671. BSE mid-cap index gained 0.2% but small-cap index fell 0.1%. Except 0.8% and 0.4% lower Telecom and Consumer Durable indices, all the BSE sectoral indices ended in green with Realty and Auto indices leading the tally, up 1.4% and 1.2% respectively.

FIIs net bought stocks worth Rs 1212 cr but net sold index futures and stock futures worth Rs 212 cr and 228 cr respectively. DIIs were net sellers to tune of Rs 689 cr.

Rupee appreciated 38 paise to end at 69.29/$.

The IMF cut India growth forecast for FY20 by 20 bps to 7.3%.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.4%-0.6% and SGX Nifty is suggesting about 30 points lower start for our market.

In yesterday's report we had reiterated the view that "11700 continues to be immediate hurdle, a crossover of which is required for a fresh upmove". We had also said that 11480 and 11460, the 61.8% and 67% retracement levels of the recent 11311-11761 upmove, are the support levels to eye.

Nifty, after touching a low of 11570, surged to close at 11677 and is set to open around 11650 today.

11700 continues to be immediate hurdle, a crossover of which is required for a fresh upmove. If that happens, 11761, the top made last week, would be the next target to eye.

11480 and 11460, the 61.8% and 67% retracement levels of the recent 11311-11761 upmove, continue to be support levels to eye.