11380, 11300 ARE NEXT SUPPORTS; 11600 IMMEDIATE HURDLE

11380, 11300 ARE NEXT SUPPORTS; 11600 IMMEDIATE HURDLE

WORLD MARKETS

US indices fell 0.2%-0.7% on Friday after Iran said it captured a British oil tanker, claiming that the vessel was “violating international regulations.”

Microsoft shares hit a record after the tech giant posted quarterly earnings and revenue that topped analyst expectations. American Express, another Dow component, also reported better-than-expected earnings.

U.S. and Chinese officials spoke over the phone Thursday, with Treasury Secretary Steven Mnuchin suggesting face-to-face talks could follow

Brent futures rose 66 cents to $62.59 a barrel while WTI rose 33 cents to $55.63.

Main European market gained upto 0.3%. Italy however tumbled 2% as as Italian banks declined amid tension between the two parties of the nation’s coalition government. In terms of economic data,  the euro zone’s current-account surplus widened to 30 billion euros ($33.7 billion) in the 12-month period to May, from 22 billion in April.

For the week, the S&P 500 and Nasdaq Composite fell 1.2% each, notching their biggest weekly loss since late May, while the Dow Jones Industrial Average declined 0.6%. In Europe, FTSE was flat while DAX and CAC fell 0.5% and 0.4% respectively. In Asia, Hang Seng rose 1% but Nikkei and Shanghai fell 1% and 0.2% respectively. Brent and WTI crude nosedived 6% and 7.6% respectively.

AT HOME

Benchmark indices nosedived a percent and half, extending the losing streak to second straight day and closing at the lowest level since  17th May, marking a two-month low. Sensex settled at 38337, down 560 points while Nifty lost 177 points to finish at 11419. BSE mid-cap and small-cap indices tumbled 2% and 1.8% respectively.  NSE mid-cap and small-cap indices fell 2.2% and 1.8% respectively to close at five month low. Except 0.4% and 0.2% higher Power and Consumer Durables indices, all the BSE sectoral indices ended in red with Auto index leading the losses, down 3.2%, followed by 2.1% lower Bankex and Consumer Discretionary Goods & Services index.

FIIs net sold stocks, index futures and stock futures worth Rs 950 cr, 1059 cr and 75 cr respectively. DIIs were net buyers to the tune of Rs 734 cr.

Rupee appreciated 14 paise to end at 68.80/$.

For the week, Sensex and Nifty fell 1% and 1.2% respectively, extending the losing streak to second straight week.

Reliance Industries reported better-than-expected profit and revenue numbers while margins were slightly below estimate. Profit rose 2.6% to Rs 10104 cr, EBITDA rose 2% to Rs 21315 cr while margin fell 90 bps to 13.6%. Gross refining margin came in slightly-below-expectation at $8.10 a barrel. Reliance Jio's ARPU dipped 3.3% qoq to Rs 122.

HDFC Bank's NII rose 22.9% to Rs 13294 cr while profit rose 21% to Rs 5568 cr. Slippages rose to Rs 4225 cr from 3577 cr QoQ. Gross and Net NPA ratio deteriorated 4 bps each to 1.4% and 0.43% respectively.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.2%-0.9% and SGX Nifty is suggesting about 15 points lower start for our market.

In Friday's report we had said that 11582 was the immediate support, upon breach of which, 11532 and 11461, would be next supports to eye.

Nifty broke 11582 support and plunged all the way to 11399 before closing at 11419 and is set to open near 11400 today.

11380 is where a trendline adjoining bottoms made in October 2018 and February is placed, is the next support to eye below which 11300 where 34-week moving average is placed, would be the next important support to eye.

11600 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts should be held on to.