NIFTY REBOUNDS FROM THE VICINITY OF 11070 SUPPORT; 11320-11350 IS THE IMMEDIATE RESISTANCE ZONE

NIFTY REBOUNDS FROM THE VICINITY OF 11070 SUPPORT; 11320-11350 IS THE IMMEDIATE RESISTANCE ZONE

WORLD MARKETS

Dow and S & P 500 rose 0.8% each while Nasdaq climbed 1.1%, recouping some of the steep losses suffered in the previous session.

Trump tweeted yesterday that the U.S. is in a “much better position now than any deal we could have made,” noting that “billions of dollars” are returning to the U.S. Trump also said he thinks the U.S. is winning the country’s trade dispute with China.

Brent oil jumped 1.7% to $71.39 a barrel and WTI 1.2% to $61.86 on reports of a drone attack at oil pumping stations in Saudi Arabia.

European markets gained 1%-1.5%.

AT HOME

After trading in a narrow range in first half, benchmark indices shot up in the second half to end with gains of six tenth of a percent, breaking nine-day losing streak. Sensex settled at 37318, up 227 points while Nifty added 73 points to finish at 11222. BSE mid-cap and small-cap indices gained 0.6% and 0.3% respectively. Except 1.2% and 0.8% lower IT and Teck indices respectively, all the BSE sectoral indices ended in green with Telecom and Energy indices leading the tally, up 2.8% and 1.7% respectively.

FIIs net sold stocks and index futures worth Rs 2012 cr and 702 cr respectively but net bought stock futures worth Rs 409 cr. DIIs were net buyers to the tune of Rs 2243 cr.

Rupee appreciated 10 paise to end at 70.43/$.

India's April WPI inflation came in at 3.07%, down from 3.18% in March. Core WPI eased to 1.9% from 2.55%.

OUTLOOK

Today morning, Nikkei is down 0.2% while Hang Seng and Shanghai are up 0.2% and 0.7% respectively. SGX Nifty is suggesting a marginally higher start for our market.

We were working with downside target of 11070 after Nifty achieved 11220 target. Yesterday, Nifty, after touching a low of 11108, rebounded sharply to end at 11222 and is set to open higher today.

11320-11350 is the immediate resistance zone, a crossover of which will generate a "buy" on the hourly chart and if that happens, 34-DMA, placed around 11550, would be the next target.

11070, the 61.8% retracement level of the entire 10585-11856 upmove, continues to be downside support.

Lupin will report its quarterly earnings today.