12041-11614 CONTINUES TO BE IMMEDIATE RANGE

12041-11614 CONTINUES TO BE IMMEDIATE RANGE

WORLD MARKETS

US markets were shut yesterday to observe Memorial Day.

European markets gained 0.4%-0.6% as an EU Parliament election showed Europhile parties still performing reasonably well despite a rise in support for nationalists. Italy however ended a tad lower after a report Brussels is considering disciplinary action over Rome’s failure to rein in public debt.

US oil rose 59 cents or 1% to $59.24 a barrel while Brent added $1.42 or 2.07% to reach $70.11.

U.S. President Trump is currently in Japan as part of a four-day state visit, where he said during a Monday news conference with Japanese Prime Minister Shinzo Abe that he hoped to announce a trade deal with the country soon.

AT HOME

Benchmark indices gained two-third of a percent, extending Friday's upmove. Sensex added 248 points to settle at 39683 while Nifty finished at 11924, up 80 points. BSE mid-cap and small-cap indices rose 1% and 1.6% respectively. BSE Capital Goods and Power indices soared 3.1% and 2.9% respectively, becoming top gainers among the sectoral indices while Energy and Healthcare indices were the top losers, down 0.8% and 0.3% respectively.

FIIs net bought stocks worth Rs 1215 cr but net sold index futures and stock futures worth Rs 587 cr and 374 cr respectively. DIIs were net sellers to the tune of Rs 328 cr.

Rupee appreciated 3 paise to end at 69.49/$.

OUTLOOK

Today morning, Nikkei is up 0.4% while Hang Seng and Shanghai are little changed. SGX Nifty is suggesting a flattish start for our market.

In yesterday's report we had reiterated the view that 12041 and 11614, the top and bottom made on the election result day, are important support and resistance levels to eye and had also advised holding on to long positions with the stop-loss of 11614.

Yesterday, Nifty, after touching a high of 11957, closed at 11924 and is set to open little changed today.

12041 continues to be immediate hurdle to eye, a crossover of which is required for a fresh upmove. If that happens 12500 would be next major target/

11614 continues to be immediate support, with the stop-loss of which, existing longs should be held on to.