Monday, August 31, 2015



WORLD MARKETS                             

While Dow ended marginally lower, S & P 500 and Nasdaq gained 0.1% and 0.3% respectively on Friday helped by a sharp rebound in crude oil and good economic data.

Personal income rose 0.4% and consumer spending rose 0.3%. June consumption was revised slightly higher to 0.3% from 0.2%. The final read on August consumer confidence from the University of Michigan came in at 91.9, slightly lower than the initial print and July's figure.

Nymex oil surged $2.66 or 6.25% to $45.22 a barrel. Dollar index spiked with the euro below $1.12.  Gold climbed $11.40 to $1134 an ounce.

European markets ended mixed with DAX and Italy ending lower and FTSE, CAC and Spain ending higher.

Earlier, Shanghai Composite ended 4.8% higher. However, for the week, it lost 7.8%.

For the week, Dow, S & P 500 and Nasdaq gained 1.1%, 0.9% and 2.6% respectively. S & P 500 recovered from a 5.27% for its biggest intra-week reversal since the week of Sept. 19, 2008, when Lehman Brothers went bankrupt. European markets gained 1%-1.7%.


After climbing just under 2% in the morning trade, benchmark indices gave away nearly two third of the gains in the noon trade to end higher by six tenth of a percent on the last day of the volatile week. Sensex settled at 26392, up 161 points while Nifty gained 53 points to finish at 8002. BSE mid-cap and small-cap indices gained 0.2% and 0.1% respectively. BSE Teck and IT indices were the top gainers among the sectoral indices, rising 1.8% and 1.5% respectively while Realty and Consumer Durable indices were the top losers, down 0.5% and 0.4% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 56 cr, 2512 cr and 432 cr respectively.  DIIs were net buyers to the tune of Rs 847 cr.

Rupee depreciated 10 paise to end at 66.14/$.

For the week, Sensex and Nifty lost 3.6% each.


A report by The Financial Times over the weekend said that Beijing will abandon large-scale share purchases, sparking concerns over more declines for A-shares.

Fed Vice Chairman Stanley Fischer, at the Jackson Hole symposium over the weekend, said that it was too early to tell whether the case for a September interest rate hike is compelling, creating further uncertainty over when the U.S. central bank will finally tighten monetary policy.

Today morning Shanghai Composite is down nearly 3%, other Asian markets are trading with cuts of upto a percent and SGX Nifty is suggesting about 30 points lower opening for our market.

In Friday's report we had mentioned that 8060, the lower level of the big gap down opening witnessed on Monday, is the immediate hurdle to eye, a crossover of which would pave the way for the further upside till about 8225, which is the upper level of this gap.

Nifty, while crossed this hurdle in the morning trade and touched a high of 8092, slipped in the noon trade to end at 8002.

The benchmark however continues to be in a buy mode on the hourly chart. Immediate support on the hourly chart is placed around 7910, with the stop loss of which trading longs can be held on to.

India's April-June quarter GDP data would be released today and is expected to show a growth of 7.5%, up from 6.7% y-o-y. Gross Value Added (GVA) however is expected to fall to 6.8% from 7.4% y-o-y.

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