11591 BELOW 11657; 11860 IS IMMEDIATE HURDLE

11591 BELOW 11657; 11860 IS IMMEDIATE HURDLE

WORLD MARKETS

Dow and S & P 500 rose 0.1% each while Nasdaq gained 0.6% as tech shares outperformed.

Commerce Secretary Wilbur Ross said that President Donald Trump is “perfectly happy ” to slap further tariffs on the remaining $300 billion of Chinese imports if the two countries cannot reach a deal.

In Europe, FTSE and CAC rose 0.2% and 0.4% respectively but DAX fell 0.1%.

WTI crude fell 1.1% to $51.93 a barrel while Brent eased 1.18 to $60.82.

AT HOME

Benchmark indices nosedived a percent and fourth to close at the lowest level since 23rd May, the election result day. Sensex settled at 38960, down 491 points while Nifty lost 151 points to finish at 11672. BSE mid-cap and small-cap indices fell 1.3% each. Except 0.2% higher Capital Goods index, all the BSE sectoral indices ended in red with Realty and Telecom indices leading the losses, down 2.1% and 1.6% respectively.

FIIs net sold stocks and stock futures worth Rs 331 cr and 490 cr respectively but net bought index futures worth Rs 58 cr. DIIs were net sellers to the tune of Rs 490 cr.

Rupee depreciated 10 paise to end at 69.90/$.

OUTLOOK

Today morning, Nikkei is flat while Hang Seng and Shanghai are up 0.2% each. SGX Nifty is suggesting about 20 points higher start for our market.

At the risk of repeating, we had given downside target of 11770 after 11870 was taken out. We had also said that below 11770, 34-DMA, placed around 11700, would be next support.

In yesterday's sharp fall, Nifty, after achieving 11770 as well as 11700 targets, went further down to touch a low of 11657 before closing at 11672.

11657, the low made yesterday, also coincides with lower band of bollinger on daily chart as well as a downward sloping trendline adjoining recent bottoms on hourly chart and hence is the immediate support to eye.

Below 11657, 11591, the upper end of the gap created by big gap-up opening after the exit polls, would be the next support.

11860 is the immediate hurdle on the hourly chart.

The Fed is scheduled to start a two-day monetary policy meeting today. Expectations for any policy changes are low, but investors will look for clues about potential rate cuts in July and later in 2019.