11490 CONTINUES TO BE IMMEDIATE SUPPORT; 11650 IMMEDIATE TARGET

11490 CONTINUES TO BE IMMEDIATE SUPPORT; 11650 IMMEDIATE TARGET

WORLD MARKETS

US indices rose 0.5%-0.9% with the S & P 500 and Nasdaq hitting a record high following comments by the U.S. Federal Reserve Chairman Jerome Powell.

Powell, at the Jackson Hole Symposium, said "further, gradual" rate hikes were likely in the future, noting the economy is "strong" and able to withstand tighter monetary policy.

Weekly jobless claims fell to 210,000, the lowest since 1969. Core durable goods orders rose 1.4% in July, more than the expected 0.4% increase.

Dollar index fell 0.6% to 69.80.

People's Bank of China announced that it was tweaking its methodology for the fixing of the yuan's daily midpoint in an effort to stabilize the currency market.

Crude rose on signs that U.S. sanctions on Iran are already reducing global crude supply. US crude rose 1.3% to $68.72 while Brent was up $1.02, or 1.4%, at $75.75.

European markets gained 0.2%-0.6%. Minutes from the last European Central Bank meeting showed protectionism and a global trade war are the biggest risks to the euro zone growth.

For the week, US indices gained 0.5%-1.7% with Nasdaq on the top. In Europe, CAC and DAX climbed 1.5% each while FTSE was up 0.1%. In Asia, Shanghai soared 2.3% while Hang Seng and Nikkei added 1.7% and 1.5% respectively. WTI gained 4.3%, snapping a seven-week losing streak.

AT HOME

Benchmark indices ended with cuts of a fifth of a percent, breaking 4-day winning streak. Sensex lost 85 points to settle at 38252 while Nifty finished at 11557, down 26 points. BSE mid-cap and small-cap indices fell 0.3% each. BSE Bankex and Consumer Durable indices fell 0.8% each, becoming top losers among the sectoral indices while Metal index soared 1.9%, becoming top gainer, followed by 0.9% higher Basic Material index.

FIIs net sold stocks, index futures and stock futures worth Rs 76 cr, 47 cr and 222 cr respectively. DIIs were net buyers to the tune of Rs 905 cr.

Rupee appreciated 20 paise to end at 69.91/$.

For the week, Sensex and Nifty gained 0.8% each, extending the winning streak to fifth straight week.

OUTLOOK

Today morning, Hang Seng is up 1.2% while Nikkei and Shanghai are up 0.8% each. SGX Nifty is suggesting about 40 points higher start for our market.

At the risk of repeating, we have been working with target of 11650 for Nifty after 11495 hurdle was taken out. Nifty, last week, touched a high of 11620 and eased to settle at 11557 but is set to open around 11600 today.

11650 continues to be immediate upside target to eye.

11490 continues to be immediate support, with the stop-loss of which, trading longs should be held on to.