11802-11973 CONTINUES TO BE IMMEDIATE RANGE

11802-11973 CONTINUES TO BE IMMEDIATE RANGE

WORLD MARKETS

US indices ended marginally higher after digesting mixed signals around U.S.-China trade talks.

Media reports, citing a government source, said that Chinese officials are pessimistic about the prospect of a U.S.-China trade deal. Beijing was troubled by U.S. President’s Donald Trump’s reluctance to roll back tariffs.

The benchmark 10-year Treasury yield fell from around 1.85% earlier in the day to 1.8% on the news. Gold futures erased earlier losses to settle 0.2% higher at $1,471.90 per ounce.

Brent crude futures fell 95 cents, or 1.5%, to $62.35 a barrel while WTI crude fell 67 cents, or 1.2%, to $57.05.

European markets, except 0.1% higher FTSE, fell upto 0.5%.

AT HOME

It was yet another day of consolidation at Sensex and Nifty ended lower by 0.2% and 0.1% respectively after a rangebound but choppy session. Sensex settled at 40284, down 72 poitns while Nifty fell 11 points to finish at 11884. BSE mid-cap and small-cap indices however outperformed, rising 0.4% and 0.3% respectively. BSE Telecom index soared 3.4%, becoming top gainer among the sectoral indices, followed by 1.7% higher Metal index. Capital Goods and Auto indices were the top losers, down 0.7% and 0.6% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 271 cr, 299 cr and 124 cr respectively. DIIs were net buyers to the tune of Rs 309 cr.

Rupee  depreciated 6 paise to end at 71.84/$.

OUTLOOK

Today morning, Nikkei is down 0.6% while Hang Seng and Shanghai are little changed. SGX Nifty is suggesting about 30 points lower start for our market.

In yesterday's report we had said that 11973, the top made on Friday, was the immediate hurdle, while, 11802, the low made last week, continued to be immediate support.

Nifty, after touching a high of 11946 in the initial trade, slipped to end at 11894.

11973, the top made Friday, continues to be immediate hurdle, a crossover of which is required for a fresh upmove. If that happens, 12034, the top made last week, would be the next target/resistance.

11802, the low made last week, continues to be immediate support upon breach of which, 11700, would be the next major support.