NIFTY ACHIEVES 11370 TARGET; 11550 IS THE IMMEDIATE HURDLE

NIFTY ACHIEVES 11370 TARGET; 11550 IS THE IMMEDIATE HURDLE

WORLD MARKETS

Dow ended flat while S & P 500 and Nasdaq lost 0.2% and 0.3% respectively amid persisting worries over US-China trade standoff.

There was a mid-day spurt after White House Press Secretary Sarah Sanders affirmed President Donald Trump's tweet earlier that China is coming to Washington this week to strike a deal. However, these gains were washed-off by last half an our dip.

Meanwhile, China yesterday said it will take "necessary" countermeasures if U.S. raises tariffs Friday. Also, Media reports suggested that Chinese trade officials backtracked on key aspects of a trade deal draft, undercutting hopes that the Chinese delegation led by Vice Premier Liu He this week could salvage the deal.

Intel fell 2.5% after the chipmaker said it expects low single-digit revenue growth over the next three years.

US oil rose 72 cents or 1.2% to $62.12 while Brent gained 49 cents, or 0.7%, to $70.37 after data from EIA showed U.S. crude inventories fell by 4 million barrels in the week to May 3, as against expected increase of 1.2 million barrels.

Main European markets gained 0.2%-0.4%.

Meanwhile, speaking at a rally in Florida late Wednesday, Trump said that China "broke the deal" in the ongoing U.S.-China trade talks.

AT HOME

Bear rampage continued as benchmark indices nosedived a percent and fifth, extending the losing streak to sixth consecutive day. Sensex lost 457 points to settle at 37789 while Nifty finished at 11359, down 138 points. BSE mid-cap and small-cap indices fell 1% and 1.2% respectively. All the BSE sectoral indices ended in red with Energy and Realty indices losing the most, down 2.5% and 2.1% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 702 cr, 1129 cr and 956 cr respectively. DIIs were net buyers to the tune of Rs 233 cr.

Rupee depreciated 28 paise to end at 69.71/$.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.3%-0.9% and SGX Nifty is suggesting about 20 points lower start for our market.

Readers would recall that after 10550 support was taken out, we had given downside target of 11370. Nifty yesterday plunged all the way to 11347 before closing at 11359, achieving 11370 target and vindicating our view.

11311, the low made on 25th March, is the next downside support to eye below which, 11220, the 50% retracement level of the entire 10585-11856 upmove, would be the next major support.

11550, the erstwhile support, would now act as immediate hurdle, with the stop-loss of which, trading shorts can be held on to.

HCL Tech and Asian Paints will report their quarterly earnings today.