11650-11461 CONTINUES TO BE IMMEDIATE RANGE

11650-11461 CONTINUES TO BE IMMEDIATE RANGE

WORLD MARKETS

US indices ended with gains of upto 0.2%.

Citigroup's quarterly numbers topped market expectations.

Earlier, GDP data from Chin met expectation while industrial output and retail sales data topped expectations. China’s economic growth slowed to 6.2% in the second-quarter from a year earlier, its weakest pace in at least 27 years, as the trade war with the U.S. took its toll.

Brent oil futures fell 29 cents to $66.43 a barrel while US crude shed 63 cents to $59.58.

European markets gained 0.1%-0.5% with DAX leading the gains.

AT HOME

After a positive start, benchmark indices gave away all the gains by noon, but recouped lost ground later to end with gains of 0.3%-0.4%. Sensex added 160 points to settle at 38896 while Nifty finished at 11588, up 35 points. BSE mid-cap and small-cap indices however fell 0.6% each. BSE IT and Teck indices climbed 3.5% and 3% respectively, becoming top gainers among the sectoral indices while Capital Goods index fell 1.5%, becoming top loser, followed by 1% lower Industrials and Telecom indices.

FIIs net sold stocks worth Rs 216 cr but net bought index futures and stock futures worth Rs 263 cr and 678 cr respectively. DIIs were net buyers to the tune of Rs 592 cr.

Rupee appreciated 14 paise to end at 68.53/$.

June wholesale inflation slowed to a 23-month low of 2.02% as against 2.45% in May.

June trade deficit stood at $15.28 bn as against $15.36 bn in May and $16.6 bn in June 2018. Exports fell 9.7% to $25 bn while imports fell 9.1% to $40.29 bn.

OUTLOOK

Today morning, Nikkei is down nearly half a percent while Hang Seng and Shanghai are little changed. SGX Nifty is suggesting a flattish start for our market.

For past coupled of sessions we have been mentioning that 11650-11461 is the immediate range for Nifty, a crossover of which, on either side, is required for a fresh move.

Yesterday, Nifty gained 35 points to end at 11588, and is set to open flat today.

11650 continues to be immediate hurdle, a crossover of which required for a fresh upmove. If that happens, 11721, the 50% retracement level of the recent 11980-11461 fall, would be the next target/resistance to eye. 11461, the low made last week, continues to be immediate support.