10138 CONTINUES TO BE IMMEDIATE HURDLE; 20-DMA SUPPORT AT 9960

10138 CONTINUES TO BE IMMEDIATE HURDLE; 20-DMA SUPPORT AT 9960

WORLD MARKETS                             

Dow and S & P 500 rose 0.1% and 0.2% respectively while Nasdaq climbed half a percent. Dow Jones industrial average recorded its 9th straight record close. S & P 500 registered its first record close since July 26.

St. Louis Federal Reserve President James Bullard said the central bank won't need to raise rates in the near term. Minneapolis Fed President said in a separate speech that immigration cuts proposed by the Trump administration will cut economic growth.

European markets, except a 0.3% lower DAX, gained upto 0.4%. Basic resources stocks gained amid an uptick in Chinese iron ore prices. The Sentix investor confidence index for euro zone dropped to 27.7 in August, down from 28.3 in July.

AT HOME

Benchmark indices ended marginally lower after trading in a narrow range. Sensex lost 52 points to settle at 32274 while Nifty finished at 10057, down 9 points. BSE mid-cap and small-cap indices however outperformed significantly, rising 1.1% each. BSE Oil & Gas and Realty indices climbed 1.6% and 1.4% respectively, becoming top gainers among sectoral indices while IT and Teck indices were the top losers, down 0.9% and 0.8% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 199 cr, 773 cr and 376 cr respectively. DIIs were net buyers to the tune of Rs 308 cr.

Rupee depreciated 22 paise to end at 63.80/$.

Sebi has directed stock exchanges to initiate action against 331 suspected shell companies. The list includes names like Assam Company, Pincon Spirit, REI Agro, Prakash Ind, SQS BFSI, Rohit Ferro etc.

Tata Steel reported more than four-fold jump in June quarter net profit at Rs 933 cr, driven by strong operational performance of India as well as Europe businesses. Profit however also included forex gain of Rs 543 cr. Revenue rose 19.3% to Rs 30973 and operating profit jumped 52% to Rs 4973 cr.

OUTLOOK

Today morning, Asian markets are trading flat to modest lower and SGX Nifty is suggesting a flattish start for our market.

In yesterday's report we had mentioned that 10138, the top made last week, is the immediate hurdle, a crossover of which is required for a fresh upmove.

Nifty, after touching a high of 10088 in the initial trade, slipped to end at 10057 and is set to open flat today.

10138 continues to be immediate hurdle, a crossover of which is required for a fresh upmove. 10300 would be the next target if that happens.

20-DMA has now moved up to 9960 and would be the immediate support to eye.

Jindal Steel will report its quarterly earnings today.