NIFTY HOLDS 9800 SUPPORT; 9940-10000 CONTINUES TO BE RESISTANCE ZONE

NIFTY HOLDS 9800 SUPPORT; 9940-10000 CONTINUES TO BE RESISTANCE ZONE

WORLD MARKETS                             

Dow ended marginally in the red, S & P 500 ended flat while Nasdaq rose 0.2%.

Fed Chair Janet Yellen said in a speech that the Fed may have overstated the labor market's strength and rate of inflation, indicating future monetary policy will be more accommodative than previously thought.

However, She also added that the case for a gradual pace of adjustments is strengthened in the face of "significant uncertainties." She also said the Fed should be "wary of moving too gradually" especially since "persistently easy monetary policy" might have "adverse implications for financial stability."

The U.S. 2-year Treasury yield hit a high of 1.456%, its highest level since Nov. 5, 2008. The 10-year yield traded near 2.24%. The U.S. dollar index hit a high of 93.286, its highest level since August 31.

Consumer confidence for September fell to 119.8 from 120.4 in August. New Home Sales fell 3.4% in August, versus expectations for a gain. The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, reported a 5.9% annual gain in July, up from 5.8% the previous month and better than the 5.7% expectation.

U.S. Treasury Department put sanctions on North Korean-linked banks and persons to curb financial support for the North's weapons program.

Brent crude fell 1% to $58.44 a barrel and U.S. crude declined 0.7% to settle at $52.43. Gold fell $10 to $1302 an ounce.

European markets, except a 0.2% lower FTSE, ended with modest gains.

AT HOME

After falling more than half a percent in the morning trade, benchmark indices recouped most of the losses to end little changed. Sensex settled at 31600, down 27 points while Nifty lost 1 point to finish at 9871. BSE mid-cap and small-cap indices in fact gained 0.4% and 1.1% respectively. BSE Realty and Metal indices soared 2.6% and 2.5% respectively, becoming top gainers among the sectoral indices while Telecom and FMCG indices were the top losers, down 1.1% and 0.4% respectively.

FIIs net sold stocks and index futures worth Rs 1916 cr and 1263 cr respectively but net bought stock futures worth Rs 320 cr. DIIs were net buyers to the tune of Rs 1537 cr.

Rupee depreciated 35 paise to end at fresh six-month low of 65.45/$.

August GST receipts stood at Rs 90669 cr, 3.6% less than July figure.

ADB lowered its 2017 growth forecast for India to 7% from its July estimate of 7.4%.

OUTLOOK

Today morning, Asian markets are trading with cuts of upto half a percent and SGX Nifty is suggesting a flattish start for our market.

In yesterday's report we had mentioned that 9800, where 20-week moving average is placed, is the immediate support, upon breach of which 9685, the bottom made in August, would be the crucial support to eye.

Nifty, after touching a low of 9813, rebounded to close at 9871.

9800 continues to be immediate support.

On the way up, as mentioned yesterday, 9940-10000 zone, where former is the 34-DMA and later is the 20-DMA, is the immediate resistance zone to eye.