NIFTY RETREATS FROM THE RESISTANCE; 11070-11000 CONTINUES TO BE SUPPORT ZONE

NIFTY RETREATS FROM THE RESISTANCE; 11070-11000 CONTINUES TO BE SUPPORT ZONE

WORLD MARKETS

Dow and S & P 500 rose about half a percent while Nasdaq climbed 1.1% on news that President Donald Trump plans to delay the implementation of auto tariffs by upto six months.

Stocks initially fell after the release of weaker-than-expected economic data stoked fears that the U.S.-China trade war is dragging down global economic growth. U.S. retail sales fell 0.2% in April, as against expected rise of 0.2%. Earlier data released in China showed industrial production rose by lower-than-expected 5.4% y-o-y in April, notching the slowest pace of growth since May 2003. Chinese retail sales also disappointed.

US oil rose 24 cents to $62.02 a barrel and Brent rose 53 cents to $71.77 a barrel.

Main European markets gained 0.6%-0.9%.

AT HOME

Bears were back after a day's break as benchmark indices nosedived more than a percent from the top of the day to end lower by about six tenth of a percent. Sensex settled at 37114, down 203 points while Nifty lost 65 points to finish at 11157. BSE mid-cap and small-cap indices fell 0.7% and 0.4% respectively. BSE Metal and Telecom indices tumbled 2.1% and 2% respectively, becoming top losers among the sectoral indices while Realty index was the top gainer, up 0.2%, followed by 0.1% higher IT and FMCG indices.

FIIs net sold stocks worth Rs 1142 cr but net bought index futures and stock futures worth Rs 276 cr and 312 cr respectively. DIIs were net buyers to the tune of Rs 672 cr.

Rupee appreciated 10 paise to end at 70.33/$.

India's April trade deficit hit a 5-month high at $15 bn, up from $11 bn in March, as exports dipped.

OUTLOOK

Today morning, Nikkei is down nearly a percent while Hang Seng and Shanghai are off 0.4% and 0.1% respectively. SGX Nifty is suggesting a flattish start for our market.

In yesterday's report we had said that 11320-11350 was the immediate resistance zone, a crossover of which is required for a further upmove.

Nifty, after touching a high of 11287, plunged to end at 11157, vindicating our view.

11070-11000 continue to be crucial support zone to eye as 11070 and 11000 are the 61.8% and 67%  retracement levels of the entire 10585-11856 upmove while 11036 is where 200-DMA is placed.

11320-11350 continues to be immediate resistance zone.

Hindalco, Bajaj Finance and Bajaj Finserve will report their quarterly earnings today.