NIFTY NEARS 11380 SUPPORT; 11695 CONTINUES TO BE IMMEDIATE HURDLE

NIFTY NEARS 11380 SUPPORT; 11695 CONTINUES TO BE IMMEDIATE HURDLE

WORLD MARKETS

US indices gained 0.6%-1% after President Trump said a U.S.-China trade deal could arrive sooner than expected. Stronger-than-expected new U.S. home sales data also helped.

Trump told reporters at the United Nations in New York that a U.S.-China deal could come sooner “than you think.” He later said Japan and the U.S. had reached an initial trade agreement.

A rough transcript of Trump’s call with Ukrainian President Volodymyr Zelensky was released by the White House. It showed Trump asked Zelensky if he could “look into” former Vice President Joe Biden and his son, Hunter.

Brent futures fell 1.03% to $62.45 a barrel, while WTI crude fell 1.4% to $56.49 a barrel after U.S. crude inventories unexpectedly rose.

European markets fell upto 0.8%

AT HOME

Benchmark indices tumbled 1.3% each on the back of profit booking and negative global cues. Sensex settled at 38593, down 503 points while Nifty lost 148 points to finish at 11440. BSE mid-cap and small-cap indices fell 1.8% and 1.5% respectively. BSE Auto and Realty indices slipped 3.8% and 3.1% respectively, becoming top losers among the sectoral indices while Power and Utilities indices were the top gainers, up 1% and 0.6% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 342 cr, 166 cr and 608 cr respectively. DIIs were net sellers to the tune of Rs 762 cr.

Rupee depreciated 3 paise to end at 71.03/$.

OUTLOOK

Today morning, Asian markets are trading with gains of upto half a percent and SGX Nifty is suggesting about 30 points higher start for our market.

In yesterday's report we had said that 11695, the top made on Monday, was the immediate hurdle, a crossover of which is required for a fresh upmove. We had also said that "11381, the lower end of the gap created by Monday's gap up opening, continues to be immediate support".

Nifty plunged to touch a low of 11416 before closing at 11440 and is set to open higher today.

11381, as mentioned above, is the lower end of the gap created by Monday's gap-up opening, while 11355 is the 33% retracement level of the recent 10670-11695 umpove, making 11380-11355 immediate support zone. If 11355 breaks, next support will come at 11180, which is the 50% retracement level of the aforementioned upmove.

11695, the top made on Monday, continues to be immediate hurdle, a crossover of which is required for a fresh upmove.