11981 CONTINUES TO BE IMMEDIATE HURDLE; 11835 NEAREST SUPPORT

11981 CONTINUES TO BE IMMEDIATE HURDLE; 11835 NEAREST SUPPORT

WORLD MARKETS

US indices ended little changed, tracking developments on U.S.-China trade as they work toward reaching a deal.

Reports suggested that China is pushing U.S. President Donald Trump to remove more tariffs on about $125 billion worth of Chinese goods imposed in September as part of the “phase one” trade deal.

Meanwhile, the ISM non-manufacturing index came in at 54.7, topping estimated figure of 53.5. Data from Commerce Department showed that the U.S. trade deficit with its global partners contracted to $52.5 billion in September.

Earlier, China’s yuan currency surged past the symbolic 7 per dollar mark for the first time since August as markets became increasingly optimistic about the prospect of a trade deal.

European markets saw gains of upto 0.4%. UK services PMI edged up to 50.0 in October from 49.5 in September.

AT HOME

Sensex and Nifty fell 0.1% and 0.2% respectively, breaking seven-day winning streak. Sensex settled at 40248, down 53 points while Nifty lost 24 points to finish at 11917. BSE mid-cap and small-cap indices tumbled 1.1% and 0.8% respectively. Except 1.5% and 0.3% higher Telecom and FMCG indices respectively, all the BSE sectoral indices ended in red with Consumer Durable and Healthcare indices leading the losses, down 1.3% and 1% respectively.

FIIs net bought stocks worth Rs 473 cr but net sold index futures and stock futures worth Rs 114 cr and 23 cr respectively. DIIs were net sellers to the tune of Rs 1594 cr.

Rupee appreciated 8 paise to end at 70.69/$.

India's Services PMI rose to 49.2 in October from 48.7 in September. Composite PMI however fell to 49.6 from 49.8.

Titan missed estimates while reporting September quarter results. The company also lowered its Jewellery Segment growth guidance from 20% to  11-13%.

Tech Mahindra reported better-than-expected quarterly numbers. Dollar revenue rose 3.2% Q-o-Q while Constant currency revenue growth stood at 4.1%. Rupee revenue rose 4.8% to Rs 9070 cr, EBITDA was up 16.8% at Rs 1159 cr, Margin expanded 130 bps to 12.8% and net profit rose 17.2% to Rs 1124 cr.

OUTLOOK

Today morning, Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 25 points lower start for our market.

In yesterday's report we had reiterated the view that upon decisive crossover of 11981 hurdle, 12103, the top made in June, would be the next big target/resistance to eye and had advised trailing stop-loss to 11835 in trading longs.

The benchmark, after touching a high of 11979 in the initial trade, slipped to 11861 before closing at 11917 and is set to open around 11900 today.

11981, the top made in July, continues to be immediate hurdle, a decisive crossover of which is required for a fresh upmove. If that happens, 12103, the top made in June, would be the next big target/resistance to eye.

11835 continues to be immediate support, with the stop-loss of which, long positions can be held on to.

Tata Steel, Cipla and Lupin will report their quarterly earnings today.