8860-8970 IS THE RANGE

8860-8970 IS THE RANGE

WORLD MARKETS                             

US indices fell 0.2%-0.4% on increased expectations that the Federal Reserve could tighten monetary policy next week while geopolitical concerns increased.

In response to North Korea firing four ballistic missiles on Monday morning, US said that it would deploy an advanced anti-missile defense system to South Korea to bolster the country's ability to defend against North Korean ballistic missiles.

Trump signed a revised executive order banning citizens from six Muslim majority countries including Iran, Libya, Syria, Somalia, Sudan and Yemen - from travelling to the U.S., this time removing Iraq from the list.

Brent crude rose 11 cents to $56.01 a barrel while US crude settled down 13 cents at $53.20.

Main European markets fell 0.3%-0.6%. Basic resources stocks lead the losses on news of an expected slowing of growth in China. In Greece, data showed the economy contracted 1.2% in the last quarter of 2016.

AT HOME

Sensex and Nifty climbed three fourth of a percent to close at the highest level since 3rd March 2015 and 5th March 2015 respectively, marking a 2-year closing high. Sensex added 216 points to settle at 29048 while Nifty finished at 8963, up 66 points. BSE mid-cap and small-cap indices gained 0.6% and 0.4% respectively. Except a 0.2% and 0.02% cut in IT and Consumer Durable indices respectively, all the BSE sectoral indices ended higher with Energy and Oil & Gas indices leading the tally, up 2% and 1.3% respectively.

FIIs net bought stocks worth Rs 564 cr but net sold index futures and stock futures worth Rs 327 cr and 194 cr respectively. DIIs were net sellers to the tune of Rs 482 cr.

Rupee appreciated 9 paise to end at 66.72/$.

OUTLOOK

Today morning, Asian markets are trading mixed with marginal changes and SGX Nifty is suggesting a marginally lower start for our market,

After rebounding from the vicinity of the 20-DMA on Friday, Nifty, yesterday surged 66 points to end at 8963, coming close to the important 8970 hurdle once again.

As we have been mentioning, 8970 is the top made in September 2016, a decisive crossover of which is required for a fresh upmove. If that happens 9119, the top made in March 2015, would be the next target to eye.

8860, the bottom made on Friday, which also coincides with the 20-DMA, is the immediate support.

Traders are advised to wait for the decisive crossover of 8860-8970 range for taking a fresh directional view on Nifty.