9800 IS THE IMMEDIATE SUPPORT; 9948 IMPORTANT HURDLE

9800 IS THE IMMEDIATE SUPPORT; 9948 IMPORTANT HURDLE

WORLD MARKETS                             

Dow and S & P 500 ended little changed while Nasdaq gained 0.3% yesterday.

Shares of oil refinery companies rose after Tropical Storm Harvey forced refineries in Houston to shut down. U.S. crude on the other hand settled 2.7% lower at $46.57 a barrel on concerns that refinery closures would affect crude demand.

European markets fell upto 0.5%.

AT HOME

Benchmark indices ended with gains of about half a percent, extending the winning streak to fourth straight day. Sensex added 155 points to settle at 31750 while Nifty finished at 9913, up 56 points. BSE mid-cap and small-cap indices continued to outperform, rising 1% each. All the BSE sectoral indices ended in green with Consumer Durable and IT indices leading the tally, up 1.3% and 1.2% respectively.

FIIs net sold stocks and index futures worth Rs 125 cr and 536 cr respectively but net bought stock futures worth Rs 698 cr. DIIs were net buyers to the tune of Rs 476 cr.

Rupee appreciated 13 paise to close at 63.90/$.

Infosys stock climbed after the company inducted Nandan Nilekani as the non-executive chairman on Thursday evening.

OUTLOOK

Earlier today, North Korea fired a missile that flew over Japan. Japanese Prime Minister Shinzo Abe said in a statement that the launch was reckless and unprecedented. Spot gold prices rose to $1322, their highest in around 10 months on safe-haven demand. Yen rose to 108.32, it's highest in four months.

Asian markets are trading with cuts of upto 1.5% with Kospi leading the losses and SGX Nifty is suggesting about 50 points lower start for our market.

In yesterday's report we had mentioned that 9948, the top made on 17th August, where a trendline adjoining recent tops on the daily chart is also placed, is an important resistance, a crossover of which will reestablish higher-top higher-bottom formation on the daily chart and would pave the way for further upmove.

The benchmark touched a high of 9926 before closing at 9913 but is set to open lower today.

9948 continues to be important hurdle, a crossover of which is required for fresh upmove. Immediate support on the hourly chart is placed around 9800, below which 9685, the bottom made in August, would be the crucial support to eye.