NIFTY APPROACHES 11850 SUPPORT; 12103 CONTINUES TO BE IMMEDIATE HURDLE

NIFTY APPROACHES 11850 SUPPORT; 12103 CONTINUES TO BE IMMEDIATE HURDLE

WORLD MARKETS

Dow ended flat while S & P 500 and Nasdaq gained 0.3% and 0.5% respectively, notching fresh record closing high.

Stocks fell to their lows of the day before recovering after Trump said Friday morning he has not agreed to roll back existing tariffs on Chinese products.

Brent gained 26 cents to settle at $62.56 a barrel while WTI rose 9 cents to settle at a 6-week high of $57.24.

In Europe, FTSE and DAX fell 0.6% and 0.5% respectively while CAC ended flat.

Earlier, data from Chinese customs showed the country’s October exports fell 0.9% year-on-year, while imports fell 6.4%. The figures beat estimates.

For the week, US indices gained 0.9%-1.2% with the S&P 500 rising for a fifth straight week. Nasdaq extended its weekly winning streak to six while Dow posted a three-week winning streak.

AT HOME

On Friday, Sensex and Nifty tumbled nearly a percent from the top of the day in late noon trade to end with cuts of 0.9% and 0.8% respectively. Sensex settled at 40323, down 330 points while Nifty lost 103 points to finish at 11908. BSE mid-cap and small-cap indices fell 0.8% and 0.5% respectively.  BSE FMCG index slipped 1.8%, becoming top loser among the sectoral indices, followed by 1.7% lower Metal, Oil & Gas and Healthcare indices. Realty index and Bankex were the top gainers, up 1.6% and 0.6% respectively.

FIIs net bought stocks and stock futures worth Rs 932 cr and 172 cr respectively but net sold index futures worth Rs 250 cr. DIIs were net sellers to the tune of Rs 584 cr.

Rupee depreciated 32 paise to end at 71.29/$.

For the week, Sensex and Nifty gained 0.4% and 0.2% respectively, extending the winning streak to second consecutive week.

OUTLOOK

Today morning, Hang Seng and Shanghai are down 1.3% and 0.5% respectively while Nikkei is little changed. SGX Nifty is suggesting a marginally lower start for our market.

In Friday's report we had reiterated the view that 12103, the top made in June, is the next major upside target as well as resistance to eye and that 11850 continued to be immediate support.

Nifty, after touching a high of 12034, slipped to end at 11888 before closing at 11908 and is set to open marginally lower today.

11850, the low made last week, continues to be immediate support, a upon breach of which 11700 would be the next support to eye.

12103 cotinues to be upside hurdle.

Traders are advised to keep stop-loss of 11850 in longs.

Hindalco and Coal India will report their quarterly earnings today.