11880 IS THE NEXT SUPPORT; STAY SHORT WITH THE STOP-LOSS OF 12070

11880 IS THE NEXT SUPPORT; STAY SHORT WITH THE STOP-LOSS OF 12070

WORLD MARKETS

US indices tumbled 0.6%-1%, extending the losing streak to third straight day, after President Trump suggested he may want to delay a trade deal with China until after the 2020 presidential election.

Beijing and Washington D.C. had previously pointed to the possibility of signing a phase one trade deal in the last quarter of 2019.

Furthermore, the U.S. trade representative also said Monday that it could put duties of up to 100% on certain French products. This is on the back of France’s decision to apply a tax on digital companies.

WTI crude futures rose 14 cents to settle at $56.10 a barrel, while Brent futures slid 5 cents to $60.87 a barrel.

In Europe, FTSE and CAC plunged 1.8% and 1% respectively while DAX rose 0.2%.

AT HOME

Sensex and Nifty ended with cuts of 0.3% and 0.45% respectively, with Nifty extending the losing streak to third straight day. Sensex settled at 40675, down 126 points while Nifty lost 54 points to finish at 11994. BSE Mid-cap and small-cap indices fell 1% and 0.7% respectively. BSE Metal and Basic Materials indices slipped 2.7% and 1.9% respectively, becoming top losers among the sectoral indices while Realty and IT indices were the top gainers, up 1.4% and 0.6% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 1131 cr, 368 cr and 605 cr respectively. DIIs were net buyers to the tune of Rs 964 cr.

Rupee depreciated 2 paise to end at 71.67/$.

OUTLOOK

Today morning, Nikkei and Hang Seng are down more than a percent while Shanghai is off 0.3%. SGX Nifty is suggesting about 30 points lower start for our market.

In yesterday's report we had said that 20-DMA, which had moved up to 11975, continued to be immediate support to eye upon breach of which 11883, the bottom made on 22nd November, would be the next support to eye.

Nifty broke 11975 support and touched a low of 11956, but rebounded from there to end at 11994.

11883, the bottom made on 22nd November, continues to be next support to eye.

12070, the top made yesterday, is the immediate hurdle, with the stop-loss of which, trading shorts can be held on to.