NIFTY MOVES CLOSER TO 9950 HURDLE; IMMEDIATE SUPPORT MOVES TO 9815

NIFTY MOVES CLOSER TO 9950 HURDLE; IMMEDIATE SUPPORT MOVES TO 9815

WORLD MARKETS                             

US indices gained 0.25%-1% with Nasdaq on top yet again.

Treasury Secretary Steven Mnuchin said that a "very detailed" tax plan had been prepared by President Donald Trump's administration and that the plan had been introduced to Congress and will be shown to the public at the end of September.

Consumer spending rose 0.3% in July, a touch below the 0.4% forecast. Meanwhile, the personal consumption expenditures price index rose 1.4% compared to the previous year, below the 1.5% rise seen in June. Weekly jobless claims totaled 236,000, matching estimates. Pending home sales fell 0.8% in June.

Treasury yields and Dollar fell after the inflation data were released. The benchmark 10-year note yield traded at 2.133%, while the two-year yield traded near 1.33%. Dollar index, after touching a high of 93.35, slipped to end at 92.57, the previous close being 92.85.

U.S. crude rose 2.8% to settle at $47.23 a barrel and Brent crude gained 3% to settle at $52.38.

European markets gained 0.4%-0.9%. Euro zone inflation hit 1.5% on a year-over-year basis in August, marking the highest rate in four months. German Statistics retail sales dropped more than expected in July.

Earlier, China's official manufacturing PMI topped expectations.

AT HOME

After falling about a fourth of a percent in the morning, benchmark indices saw a sustained northward move through rest of the session to end with gains of about three tenth of a percent, extending the winning streak to second straight day. Sensex added 84 points to settle at 31730 while Nifty finished at 9918, up 33 points. BSE mid-cap and small-cap indices gained 0.2% each. BSE Realty and Power indices were the top gainers among the sectoral indices, up 1.1% and 0.8% respectively while Healthcare index and Bankex were the top losers, down 0.5% and 0.1% respectively.

FIIs net bought stocks and index futures worth Rs 78 cr and 1185 cr respectively but net sold stock futures worth Rs 81 cr. DIIs were net buyers to the tune of Rs 510 cr.

Rupee appreciated 8 paise to close at 63.91/$.

For the August derivative series, Nifty lost 1% while for the August month, it lost 1.6%

India's GDP growth for April-June quarter hit a 13 quarter low of 5.7%, sharply lower than last year's 7.9% expansion in the same quarter as also the previous quarter's 6.1% growth. GVA grew 5.6%, lower than the last year’s 7.6% growth during the same quarter. Manufacturing sector grew at just 1.2% as against 10.7% in the same period last year. Gross Fixed Capital Formation grew 1.16% during the quarter compared to 7.39% in the same period in 2016.

Core sector growth slowed to 2.4% in July from due to contraction in output of crude oil, refinery products, fertiliser and cement.

India's fiscal deficit at July- end touched 92.4% of the budget mainly because of front loading of expenditure by various government departments.

OUTLOOK

China's August Caixin manufacturing PMI has come in at 51.6, up from 51.1 month-on-month.

Today morning, Asian markets are trading with gains of 0.2%-0.4% and SGX Nifty is suggesting about 15 points higher start for our market.

Nifty yesterday gained 33 points to finish at 9918 and after a positive start today it would be close to important 9948 hurdle, a crossover of which, as we have been mentioning, is required for a fresh upmove. If that happens, 10138, the highest high made in the beginning of August, would be the next upside target to eye.

Meanwhile, the upward sloping trendline adjoining recent bottoms on the daily chart now lands a support around 9815 which makes 9950-9815 immediate range, a breach of which, on either side, is required for a fresh directional view.

US non-farm payroll data for August will be out today and is expected to show an addition of 180000 jobs, down from 209000 figure in July.