NIFTY AGAIN RETREATS FROM THE VICINITY OF 11990 HURDLE; 11870 IS THE IMMEDIATE SUPPORT

NIFTY AGAIN RETREATS FROM THE VICINITY OF 11990 HURDLE; 11870 IS THE IMMEDIATE SUPPORT

WORLD MARKETS

US indices ended marginally in the red, with the Dow breaking six-day winning streak.

Economic data showed manufacturing activity in the U.S. grew at its slowest pace since 2016.

US and Brent crude ended flat at $53.27 and $62.29 a barrel respectively.

Earlier, Shanghai Composite surged 2.6% after Chinese state news agency Xinhua said the country would let local governments use bonds to finance infrastructure projects.

European markets gained 0.3%-0.9%. Data out of the U.K. showed wages in the three months to April beating forecasts while employment growth slowed, though the jobless rate held at its lowest rate since 1975.

AT HOME

Benchmark indices gained four tenth of a percent, extending the winning streak to third straight day. Sensex added 165 points to settle at 39950 while Nifty finished at 11965, up 42 points. BSE mid-cap and small-cap indices rose 0.8% and 0.2% respectively. Except marginally lower FMCG and Capital Goods indices, all the BSE sectoral indices ended in green with Metal index leading the tally, up 1.3%, followed by 0.9% higher Oil & Gas and Bankex indices.

FIIs net bought stocks, index futures and stock futures worth Rs 96 cr, 950 cr and 563 cr respectively. DIIs were net sellers to the tune of Rs 151 cr.

Rupee appreciated 21 paise to ned at 69.44/$.

Indiabulls Housing nosedived 8.1% after a legal action filed against the company for alleged misappropriation of Rs 98,000 crore of public money.

OUTLOOK

Today morning, Hang Seng and Shanghai are down 1.3% and 0.4% respectively while Nikkei is flat. SGX Nifty is suggesting a marginally lower start for our market.

Nifty, after taking support around our indicated 11775 support on Friday, has been in a recovery mode. In Monday's report we had said that "11990, the two third retracement level of the recent 12103-11770 fall, is the immediate hurdle to eye".

Yesterday, Nifty touched a high of 12000 but did not sustain there and slipped to end at 11965 and is set to open around 11950 today.

12000, the top made yesterday, is the immediate hurdle to eye, upon crossover of which, 12103, the top made last week, would be the next target.

11871, the low made on Monday, is the immediate support below which 11770, the bottom made last week, would be next support to eye.

India's May CPI data will be released today and is expected to show that retail inflation inched up to 3.1% from 2.92% in April, largely on the back of rising food prices. IIP for April is expected to show a print of around 0.32% as against figure of -0.1% in March.