11488 IS NEXT SUPPORT; 11700 IMMEDIATE HURDLE

11488 IS NEXT SUPPORT; 11700 IMMEDIATE HURDLE

WORLD MARKETS

US indices fell 0.4%-0.8%, with Nasdaq leading the losses, as dip in Apple shares pressured the broader tech sector.

Apple shares fell more than 2% after Rosenblatt Securities downgraded the stock to sell from neutral. Deutsche Bank tumbled 6% after it announced Sunday it will close off its global equities trading business and slash 18,000 jobs as part of a massive restructuring effort to improve profitability.

US oil rose 15 cents or 0.3% to $57.66 a barrel while Brent fell 12 cents or 0.3% to $64.11.

European markets ended flat to modestly lower.

AT HOME

Sensex and Nifty nosedived 2% and 2.1% respectively, suffering the worst single day fall since 11th October 2018, on the back of concerns that the budget proposal would increase tax burden for FPIs. Sensex  lost 792 points to settle at 38720 while Nifty finished at 11558, down 252 points. BSE mid-cap and small-cap indices fell 2% and 2.5% respectively. All the BSE sectoral indices ended in red with Capital Goods and Realty indices leading the losses, down 3.8% and 3.5% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 402 cr, 2902 cr and 898 cr respectively. DIIs were net buyers to the tune of Rs 321 cr.

Rupee depreciated 23 paise to end at 68.65/$.

Media reports suggested that Budget proposal to raise the tax burden on the mega-rich could also affect about 2000 foregin funds which are structured either as trusts or AOP.

OUTLOOK

Today morning, Nikkei is up a third of a percent, Shanghai is little changed while Hang Seng is off 0.2%. SGX Nifty is suggesting a marginally lower start for our market.

In yesterday's report we had said that 11725 is the next downside support below which 11625 would be the next important support to eye.

Nifty plunged all the way to 11523 before closing at 11558.

11488, followed by 11436, which are the 61.8% and 67% retracement levels of the 11108-12103 upmove, are the next supports to eye.

11700, the 38.2% retracement of the recent 11981-11523 fall, is the immediate hurdle.

TCS will report its quarterly earnings today.