9988 CONTINUES TO BE IMMEDIATE HURDLE; 9840 IMMEDIATE SUPPORT
US indices plunged 0.8%-1.1% on geopolitical worries related to North Korea.
In an emergency UN meeting held on Monday, US urged the 15-member Security Council to respond with the "strongest possible measures" against North Korea.
A North Korean diplomat threatened that the country was prepared to deliver "gift packages" to the U.S. if the latter continues to put pressure on it. South Korea has said further missile tests could be expected from North Korea following its last nuclear test on Sunday.
Also, Trump yesterday tweeted that he would be letting Japan and South Korea purchase a "substantially increased amount" of military equipment from the U.S. Meanwhile, Russian President Vladimir Putin cautioned over increasing "military hysteria" in reaction to developments in the region.
Gold rose 1.1% to $1,344.50 per ounce, around a one-year high. The yen gained 0.9% against the dollar to 108.82. US 10-year treasury yield stood at 2.06%, its lowest since November.
European markets, except a 0.2% higher DAX, fell 0.2%-0.6%
Benchmark indices ended higher by four tenth of a percent after a choppy session. Sensex added 107 points to settle at 31810 while Nifty finished at 9952, up 39 points. BSE mid-cap and small-cap indices climbed 0.6% and 1% respectively. Except a 1.6% lower Telecom index, all the BSE sectoral indices ended in green with Consumer Durable and Realty indices leading the tally, up 2.3% and 1.6% respectively.
Bharti Airtel plunged 2.5% on reports that the Telecom Regulatory Authority of India (TRAI) might soon release guidelines to phase out Interconnection Usage Charge (IUC), the charge companies pay their peers for using their network to complete calls and/or other services.
FIIs net sold stocks worth Rs 379 cr but net bought index futures and stock futures worth Rs 80 cr and 33 cr respectively. DIIs were net buyers to the tune of Rs 474 cr.
Rupee depreciated 7 paise to end at 64.12/$.
The government yesterday said that names of over 2.09 lakh firms have been struck off from register of companies for failing to comply with regulatory requirements and action has been initiated to restrict operations of their bank accounts.
India's Nikkei/IHS Markit Services PMI for August rose to 47.5, up from July's 45.9 but still below the 50 mark that separates expansion from contraction. A composite PMI, which takes into account both manufacturing and services activity, was up from July's 46.0 but remained in contraction territory at 49.0
Today morning, Asian markets are trading with cuts of 0.2%-0.4% and SGX Nifty is suggesting about 30 points lower start for our market.
Yesterday, after touching a high of 9963, Nifty closed at 9952, a gain of 39 points compared to previous daily close. 9988, the top made on Monday, continues to be immediate hurdle above which 10138, the top made in August, would be the next major hurdle to eye.
Trendline adjoining recent bottoms on the daily chart has now moved up to 9840, which makes it immediate support below which 9685, the bottom made in August, would be the crucial support to eye.