8845, 8915 CONTINUE TO BE UPSIDE TARGETS; STAY LONG WITH THE STOP-LOSS OF 8660

8845, 8915 CONTINUE TO BE UPSIDE TARGETS; STAY LONG WITH THE STOP-LOSS OF 8660

WORLD MARKETS                             

US indices fell 0.2%-0.3% with energy and materials leading the losses amidst falling oil prices.

US oil fell 3.6% to $44.70 a barrel after the Energy Information Administration said inventories rose by 2.3 million barrels last week. This was the second consecutive weekly build-up and higher than the estimated figure of 921,000 barrels. Brent fell 2.8% or $1.33 to $47.04.

ADP jobs report showed private sector added 177000 jobs in August, a tad higher than the expected 175000. Chicago PMI for August came in at 51.5. Pending home sales rose 1.3% in July.

Dollar index, after touching a high of 96.25, retreated to end at 95.99, the previous close being 96.05. Gold fell $5 to $1311 an ounce.

In Europe, FTSE, CAC and DAX lost 0.4%-0.6% while Italy and Spain were up about a third of a percent. Euro zone inflation for August came in at 0.2%, unchanged from the previous month. The region's unemployment rate for July also remained unchanged from the previous month, at 10.1%.

For the month, Dow and S & P 500 lost 0.2% and 0.1% respectively, snapping a six-month and five-month winning streak respectively. Nasdaq was up 1%.

AT HOME

Sensex and Nifty gained 0.4% and 0.5% respectively, extending the upmove to third straight day and closing at the highest level since 22nd July 2015 and 13th April 2015 respectively. Sensex added 109 points to settle at 28452 while Nifty finished at 8786, up 42 points. BSE mid-cap and small-cap indices gained 0.4% and 0.2% respectively. BSE Capital Goods index and Bankex were the top gainers among the sectoral indices, rising 1.4% and 1.2% respectively whereas Metal index tumbled 1.4%, becoming top loser, followed by 0.8% cut in Realty index.

FIIs net bought stocks, index futures and stock futures worth Rs 854 cr, 2886 cr and 204 cr respectively. DIIs were net sellers to the tune of Rs 848 cr.

Rupee appreciated 6 paise to end at 66.96/$

For the month, Sensex and Nifty gained 1.4% and 1.7% respectively, extending the winning streak to sixth straight month.

India's core sector, comprising of eight core industries, registered 3.2% growth in July, down from 5.2% in June.

India's GDP growth during the April-June quarter slowed to 7.1% from 7.5% in the same quarter last year and 7.9% in the fourth quarter of FY16. GVA (Gross value added) stood at 7.3% as compared to 7.4% y-o-y and 7.2% in the previous quarter. Agriculture sector growth dipped to 1.8% from 2.3% QoQ while construction also lagged with mere 1.5% growth versus 4.5% QoQ. Mining sector saw a contraction with growth plunging to 0.4% from 8.6% in the last quarter (QoQ). Services sector, however, saw a strong growth at 9.6% compared to 8.7% QoQ.

India's April-July fiscal deficit stood at Rs 3.93 lakh crore, or 73.3% of the budget estimates for 2016-17.

Oil marketing companies hiked petrol and diesel prices by Rs 3.38 and 2.67 a litre respectively. ATF prices however were cut by 4%.

BPCL's first quarter profit rose by 11% y-o-y to Rs 2620 cr. Operating profit grew 3% to Rs 3913 cr and margin expanded by 37 bps to 6.87%. Gross refining margin stood at USD 6.09.

Competition Commission of India yesterday imposed a penalty of around Rs 6300 on 10 cement companies for cartelization.

According to the report released yesterday, a panel headed by former chief justice of Delhi High court A P Shah has found Reliance Industries (RIL) and its foreign partners BP Plc and Niko Resources “guilty” for taking out natural gas that belonged to ONGC.

OUTLOOK

Today morning Nikkei and Shanghai are flat, other Asian markets are trading with cuts of upto 0.8% and SGX Nifty is suggesting about 15 points lower start for our market.

In yesterday's report we had mentioned that Nifty, after a four-week long consolidation, had broken out of the 8730-8730 resistance area and that 8845, the top made in April 2015, would be the immediate target above which 8915 would be the next target to eye.

The benchmark, after touching a high of 8819, eased to close at 8786.

8845 continues to be the immediate upside target above which 8915 would be the next target to gun for. Immediate support on the hourly chart has moved up to 8660, with the stop-loss of which, trading longs should be held on to.

Auto companies will report their August sales data today.