11844-11625 IS THE BROAD RANGE

11844-11625 IS THE BROAD RANGE

WORLD MARKETS

Dow ended flat while S & P 500 and Nasdaq lost 0.2% and 0.3% respectively, monitoring geopolitical tensions between the U.S. and Iran and awaiting a key meeting between President Trump and Chinese President Xi Jinping at this week’s G-20 summit.

China’s Ministry of Commerce said in a statement yesterday that the country’s Vice Premier Liu He had a phone call with U.S. Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer on Monday. They discussed trade and agreed to maintain communications, according to the statement.

Meanwhile, the U.S. on Monday imposed sanctions on Iran over the latter’s shooting down of an unmanned American drone last week.

US oil rose 0.8% to $57.90 a barrel while Brent fell 0.5% to 64.86.

In Europe, FTSE rose 0.1% while DAX and CAC fell 0.5% and 0.1% respectively. Ifo Institute for Economic Research showed German business morale falling to its lowest level since November 2014.

AT HOME

Benchmark indices fell a fifth of a percent, extending the losing streak to second straight day. Sensex lost 71 points to settle at 39122 while Nifty finished at 11699, down 24 points. BSE mid-cap and small-cap indices fell 0.3% and 0.2% respectively. BSE Oil & Gas and Metal indices tumbled 1.6% and 1.4% respectively, becoming top losers among the sectoral indices while Power and Capital Goods indices were the top gainers, up 0.4% and 0.3% respectively.

FIIs net bought stocks and index futures worth Rs 207 cr and 317 cr respectively but net sold stock futures worth Rs 121 cr. DIIs were net buyers to the tune of Rs 984 cr.

Rupee appreciated 20 paise to end at 69.35/$.

OUTLOOK

Today morning, main Asian markets are trading with cuts of 0.1%-0.2% and SGX Nifty is suggesting a marginally higher start for our market.

In yesterday's report we had said that 11844, the top made Thursday, continues to be immediate hurdle while 11700, the 67% retracement level of the recent 11625-11844 upmove, is the immediate support below which 11625, the bottom made last week, would be the next important support.

Nifty breached 11700 level and touched a low of 11670 and recovered from there to close at 11700.

11625, the bottom made last week, is the next support to eye.

On the way up, 11844 continues to be immediate hurdle, a crossover of which is required for a fresh upmove.