8690-8800 IS THE IMMEDIATE RANGE

8690-8800 IS THE IMMEDIATE RANGE

WORLD MARKETS                             

US indices gained 0.2%-0.6% yesterday as oil prices jumped amid reports that OPEC had reached a deal to cut production.

US oil rallied 5.3% to $47.05 and Brent soared 6% to $48.69 on the back of report that OPEC members had reached an agreement to limit production to a range of 32.5 million to 33.0 million barrels per day, down slightly on Augusts’ output of 33.2 million barrels a day and that OPEC would finalize an output reduction plan at its official meeting on November 30.

Fed Chair Janet Yellen, in a prepared testimony to the House Financial Services Committee, said the central bank does not have a "fixed timetable" for raising rates. She also said that U.S. banks are well capitalized, but remain challenged by weak interest income.

In economic data news, U.S. durable goods orders for August came in unchanged versus an expected decline, but core capital goods orders rose for a third straight month.

European markets added 0.5%-0.8%, buoyed by a rally in Deutsche Bank shares and a strong performance in the basic resources stock sector. Shares of Deutsche Bank rebounded from all-time low levels after CEO John Cryan told a German newspaper that the bank did not need any government assistance or a capital increase.

AT HOME

After a flattish start, benchmark indices saw a sustained northward move through the session with Sensex and Nifty ending with gains of 0.25% and 0.45% respectively and breaking the three-day losing streak. Sensex added 39 points to settle at 8745 while Nifty finished at 8745, up 39 points. BSE mid-cap and small-cap indices soared 0.9% and 1% respectively. Except a 0.5% and 0.3% cut in Energy and IT indices respectively, all the BSE sectorla indices ended in green with Telecom and Metal indices leading the tally, up 2.3% and 1.9% respectively.

FIIs net bought stocks and index futures worth Rs 74 cr and 135 cr respectively but net sold stock futures worth Rs 357 cr. DIIs were net sellers to the tune of Rs 70 cr.

Rupee appreciated 2 paise to end at 66.46/$.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.2%-1.5% with Nikkei on the top and SGX Nifty is suggesting about 40 points higher start for our market.

After Nifty bounced back exactly from the 8690 support on Tuesday, in yesterday's report we had mentioned that 8800 is the immediate resistance, at least a crossover of which is required to bring bulls back in the game.

The benchmark added 39 points yesterday to end at 8745 and a higher opening today would take it closer to the 8800 hurdle mentioned above. A sustained trading above 8800 would generate a buy on the hourly chart and would pave the way for the further upside. 8893, the top made last week, would be the next target if that happens.

Meanwhile, traders would do well to wait for the breach of either 8690 support or 8800 resistance, for taking a fresh view on Nifty.