Today morning, Nikkei and Shanghai are little changed while Hang Seng is up about 0.7%. SGX Nifty is suggesting a marginally higher start for our market. After Nifty broke the immediate support of 11870, we have working with downside target of 11770, which was the bottom made on 7th June. Nifty, on Friday, touched a low of 11797 before closing at 11823 and is set to open flat today. 11770, the low made on 7th June, continues to be support to eye. If that breaks, 34-DMA, placed around 11700, would be the important support. A trendline adjoining recent tops on the hourly chart presents a resistance around 11940 and that would be the immediate hurdle to eye.

2. PRUDENT MORNING MANTRA
11770 CONTINUES TO BE IMMEDIATE SUPPORT; 11940 IMMEDIATE HURDLE
WORLD MARKETS
US indices fell 0.1%-0.5% with Nasdaq leading the losses after a sharp decline in Broadcom shares put
other chipmakers and the broader tech sector under pressure.
Broadcom fell 5% after posting weaker-than-expected revenue for the previous quarter and cutting its
guidance for 2019, citing “broad-based ” demand weakness and the U.S. crackdown on Huawei.
U.S. retail sales rose 0.5% in May, below the 0.6% gain expected by economists. However, April retail
sales were revised higher.
US crude rose 23 cents to $52.74 and Brent gained 70 cents to reach $62.01 a barrel. The International
Energy Agency (IEA) slashed its estimate for global oil demand growth for the second consecutive month,
citing intensifying trade concerns amid fears of a global recession.
Earlier, Shanghai Composite fell 1% after data showed industrial production in China rose 5% last month
on a year-over-year basis, the slowest pace of growth in 17 years.
European markets fell 0.1%-0.6%. France reported its EU-harmonized consumer price index (CPI) for
May at 0.9% year-on-year and 0.1% month to month, missing forecasts. Italian EU-harmonized CPI also
came in at 0.9% year-on-year.
For the week, US indices ended mixed with the Dow and Nasdaq gaining 0.4% and 0.7% respectively
while S & P 500 fell 0.2%. Main European markets gained 0.1%-0.4%. In Asia, Shanghai and Nikkei
climbed 1.9% and 1.1% respectively, Hang Seng rose 0.6% while Sensex and Nifty fell 0.4% each. US
crude fell 2.7% while Brent was off 1.5%.
AT HOME
After trading in a narrow range for better part of the day, benchmark indices nosedived in lat half an hour
to end with cuts of about three fourth of a percent. Sensex lost 289 points to settle at 39452 while Nifty
finished at 11823, down 90 points. BSE mid-cap and small-cap indices fell 1% and 0.8% respectively.
Except 0.2% higher Capital Goods index, all the BSE sectoral indices ended in red with Realty and
Telecom indices leading the losses, down 2.1% and 1.6% respectively.
The sharp fall in last half an hour was attributed to news that Department of Revenue has been advised
by the Commerce Ministry to impose retaliatory tariffs on select US products
FIIs net sold stocks and stock futures worth Rs 239 cr and 673 cr respectively but net bought index
futures worth Rs 366 cr. DIIs were net buyers to the tune of Rs 376 cr.
Rupee depreciated 29 paise to end at 69.80/$.
For the week, Sensex and Nifty fell 0.4% each, extending the losing streak to second straight week.
OUTLOOK

3. Today morning, Nikkei and Shanghai are little changed while Hang Seng is up about 0.7%. SGX Nifty is
suggesting a marginally higher start for our market.
After Nifty broke the immediate support of 11870, we have working with downside target of 11770,
which was the bottom made on 7th June. Nifty, on Friday, touched a low of 11797 before closing at
11823 and is set to open flat today.
11770, the low made on 7th June, continues to be support to eye. If that breaks, 34-DMA, placed around
11700, would be the important support.
A trendline adjoining recent tops on the hourly chart presents a resistance around 11940 and that would
be the immediate hurdle to eye.
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