11945 CONTINUES TO BE IMMEDIATE TARGET; TRAIL STOP-LOSS TO 11780

11945 CONTINUES TO BE IMMEDIATE TARGET; TRAIL STOP-LOSS TO 11780

WORLD MARKETS

Dow ended marginally in the red while S & P 500 and Nasdaq gained 0.4% and 0.7% respectively ahead of the G-20 summit in Osaka, Japan, where U.S. President Donald Trump and Chinese President Xi Jinping are expected to meet amid the ongoing trade standoff.

On the data front, the Commerce Department said the U.S. economy grew at a solid rate of 3.1% in the first quarter.

US oil rose 5 cents to $59.43 a barrel while Brent fell 14 cents to $66.35.

European markets ended mixed with modest changes. Data from European Commission showed Euro zone economic sentiment fell to its lowest point in three years in June.

AT HOME

Benchmark indices ended little changed after a choppy session on the expiry day of the June derivative series. Sensex and Nifty fell 6 points each to settle at 39586 and 11841 respectively. BSE mid-cap and small-cap indices however gained 0.4% and 0.5% respectively. BSE Realty and Auto indices climbed 1.7% and 1.2% respectively, becoming top gainers among the sectoral indices while IT and Energy indices were the top losers, down three fourth of a percent each.

FIIs net sold stocks worth Rs 1 cr while net bought index futures and stock futures worth Rs 2671 cr and 1140 cr respectively. DIIs were net buyers to the tune of Rs 197 cr.

Rupee appreciated 9 paise to end at 69.06/$.

For the June derivative series, Nifty lost 0.9%.

OUTLOOK

Today morning, key Asian markets are trading with cuts in the vicinity of half a percent and SGX Nifty is suggesting a flattish start for our market.

In yesterday's report we had said that having crossed 11844 hurdle, next target to eye for Nifty is 11945, which is the two-third retracement level of the recent 12103-11625 fall.

Nifty, after touching a high of 11911, slipped to end at 11841 and is set to open modestly higher today.

11945 continues to be immediate upside target as well as resistance to eye. Once that is taken out, 12000 and 12103, previous tops on daily chart, would be the subsequent targets to eye.

Immediate support on the hourly chart has moved up to 11780, with the stop-loss of which, trading longs should be held on to.