NIFTY RETREATS FROM 11796 HURDLE; 11624 CONTINUES TO BE IMMEDIATE SUPPORT

NIFTY RETREATS FROM 11796 HURDLE; 11624 CONTINUES TO BE IMMEDIATE SUPPORT

WORLD MARKETS

Dow fell half a percent while S & P 500 and Nasdaq eased 0.2% each, extending Wednesday's fall, which happened after the Fed Chair Powell hinted that lower rates may not be on the cards.

US crude plunged $1.81 or 2.8% to $61.81 a barrel, it's lowest level in a month, as rising U.S. crude stockpiles helped offset concerns about a supply crunch. Brent fell $1.43, or 2%, to $70.75.

European markets, except a flat DAX, fell 0.5%-1.6% with Spain leading the losses. The Bank of England held interest rates steady following the extension of the deadline for the U.K.’s withdrawal from the EU. On the data front, factory activity in the euro zone contracted for a third month in April, according to IHS Markit.

AT HOME

Benchmark indices ended with modest cuts after a choppy session. Sensex settled at 38981, down 50 points while Nifty lost 23 points to finish at 11724. BSE mid-cap and small-cap indices fell 0.6% and 0.2% respectively. BSE IT and Teck indices tumbled 1.8% and 1.5% respectively, becoming top losers among the sectoral indices while Telecom index soared 2%, becoming top gainer, followed by 0.5% higher Energy index.

FIIs net bought stocks and stock futures worth Rs 598 cr and 270 cr respectively but net sold index futures worth Rs 516 cr. DIIs were net sellers to the tune of Rs 792 cr.

Rupee appreciated 20 paise to end at 69.36/$.

India's April Nikkei manufacturing PMI slowed to 51.8 from 52.6 in March.

OUTLOOK

Nikkei and Shanghai continue to remain shut. Hang Seng is down four tenth of a percent and SGX Nifty is suggesting about 20 points lower start for our market.

For past couple of days we have been mentioning that 11796-11624, top-bottom made on last Thursday, is the immediate range to watch, a crossover of which, on either side, is required for a fresh move.

Yesterday, Nifty, after touching a high of 11789, slipped to end at 11724 and is set to open near 11700 today.

11796 continues to be immediate hurdle, upon crossover of which, , 11856, the top made on 18th April, would be the next target to eye.

11624 continues to be immediate support, with the stop-loss of which, existing longs should be held on to.