11844 CONTINUES TO BE IMMEDIATE HURDLE; 11700 NEAREST SUPPORT
WORLD MARKETS
US indices fell 0.1%-0.2% on Friday.
Indices touched session highs on reports that Vice
President Mike Pence would postpone a China policy address amid “positive
signs” on trade. But stocks pared most of those gains after the Commerce
Department barred five additional Chinese companies from buying U.S. components
without approval.
US oil rose 0.6% to $57.43 a barrel while Brent gained 69
cents or 1.1% to $65.14 on fears the
United States could attack Iran and disrupt flows from the Middle East. Iranian
officials said Tehran had received a message from Trump through Oman overnight warning
that a U.S. attack on Iran was imminent. The officials said they had responded
by saying that any attack would have regional and international consequences
Trump also said Saturday that the U.S. would impose “major
additional sanctions ” against Iran on Monday.
Main European markets too fell 0.1%-0.2%. Britain posted a
larger-than-expected budget deficit as the deficit for May rose by 23% from the
previous year.
For the week, Dow and S&P 500 both rose more than 2%,
while the Nasdaq climbed 3%. WTI surged more than 9%, its biggest weekly
percentage gain since December 2016 while Brent climbed 5%.
AT HOME
After Thursday's bull rampage, Friday was a day of bear
domination as benchmark indices tumbled
nearly a percent, giving away three-fourth of yesterday's gains. Sensex slipped
407 points to settle at 39194 while Nifty finished at 11724, down 107 points.
BSE mid-cap index fell 0.4% while small-cap index gained 0.1%. Except 0.1%
higher Basic Material and Power indices, all the BSE sectoral indices ended in
red with Auto index leading the losses, down 1.3%, followed by 1.1% lower
Energy and Telecom indices.
FIIs net sold stocks and index futures worth Rs 731 cr and
160 cr respectively but net bought stock futures worth Rs 39 cr. DIIs were net
buyers to the tune of Rs 446 cr.
Rupee depreciated 11 paise to end at 69.55/$.
For the week, Sensex and Nifty fell 0.6% and 0.8%
respectively, extending the losing
streak to third consecutive week.
OUTLOOK
Today morning, Asian markets are trading flat to modest
lower and SGX Nifty is suggesting a flattish start for our market.
In Friday's report we had said that a crossover of 11844,
the top made Thursday, would confirm a "Buy" on the hourly chart and
would pave the way for further upmove.
Nifty, after touching a high of 11828 in the initial
trade, slipped to end at 11724 and is set to open flat today.
11844, the top made Thursday, continues to be immediate
hurdle to eye, a crossover of which is required for a fresh upmove.
11700, the 67%
retracement level of the recent 11625-11844 upmove, is the immediate support to
eye below which 11625, the bottom made last week, would be the next important
support.
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