11370 IS THE NEXT SUPPORT; 11657 IMMEDIATE HURDLE

11370 IS THE NEXT SUPPORT; 11657 IMMEDIATE HURDLE

WORLD MARKETS

US indices nosedived 1.6%-2% on growing trade war threat between US and China.

U.S. Trade Representative Robert Lighthizer told reporters that the U.S. will increase levies on Chinese imports on Friday.

US oil fell 85 cents or 1.4% to $61.40 while Brent slipped $1.31, or 1.8% to $69.93 a barrel.

FTSE, DAX and CAC tumbled 1.6% each. German industrial figures showed orders rose less than expected in March after two months of sharp decline.  The European Commission released its latest economic forecast. The Commission still expects growth in the whole EU to hit 1.4% this year and 1.6% next year. However, it cut growth forecasts for Germany for the second time this year, as trade tensions and a Chinese slowdown weigh.

AT HOME

After rising about half a percent, benchmark indices nosedived in late noon trade to end with cuts of about nine tenth of a percent, extending the losing streak to fifth consecutive day. Sensex settled at 38276, down 323 points while Nifty lost 100 points to finish at 11497. BSE mid-cap and small-cap indices fell 1% and 0.8% respectively. BSE Telecom and Energy indices plunged 2.4% and 2.2% respectively, becoming top losers among the sectoral indices while IT and Capital Goods indices gained 0.2% each.

FIIs net sold stocks and index futures worth Rs 645 cr and 464 cr respectively but net bought stock futures worth Rs 23 cr. DIIs were net buyers to the tune of Rs 819 cr.

Rupee depreciated 2 paise to end at 69.42/$.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.8%-1.8% and SGX Nifty is suggesting about 60 points lower start for our market.

In yesterday's report we had reiterated the view that "11550 continues to be crucial downside support, upon breach of which, 11370, the 38.2% retracement level of the entire 10585-11856 upmove, would be the next support to eye".

Nifty broke 11550 support and plunged all the way to 11484 before closing at 11497 and is set to open below 11450 today.

11370, as mentioned above continues to be next downside target as well as support to eye.

11657, the top made yesterday, would now act as immediate hurdle, with the stop-loss of which, trading shorts can be held on to.