NIFTY NEARLY ACHIEVES 11770 TARGET; 11590 CONTINUES TO BE IMMEDIATE SUPPORT

NIFTY NEARLY ACHIEVES 11770 TARGET; 11590 CONTINUES TO BE IMMEDIATE SUPPORT

WORLD MARKETS

US indices ended marginally higher with S & P 500 briefly breaking above 2,900 for the first time ever.

After signing trade deal with Mexico, Trump indicated he is open to striking a deal with Canada. Canada's Foreign Minister traveled to Washington yesterday to resume negotiations about the future of NAFTA.

Consumer confidence rose in August to its highest level since October 2000.

Brent crude fell 26 cents to settle at $75.95 a barrel while West Texas Intermediate crude futures fell 34 cents to settle at $68.53 a barrel.

In Europe, London and France gained 0.5% and 0.1% respectively while Germany and Italy fell 0.1% and 0.8% respectively. Italy fell after deputy PM said country's deficit could go above the European Union's limit of 3 percent of gross domestic product (GDP) next year to fund promised spending measures.

AT HOME

Sensex and Nifty gained 0.5% and 0.4% respectively, extending the winning streak to second day and scaling yet another record high. Sensex added 202 points to settle at 38896 while Nifty finished at 11738, up 46 points. BSE mid-cap index however fell 0.4% while small-cap index rose 0.4%. BSE Metal and Energy indices climbed 1.9% and 1.2% respectively, becoming top gainers among the sectoral indices while Consumer Durable and Oil & Gas indices were the top losers, down 0.8% and 0.7% respectively.

FIIs net sold stocks worth Rs 161 cr but net bought index futures and stock futures worth Rs 284 cr and 184 cr respectively. DIIs were net sellers to the tune of Rs 199 cr.

Rupee appreciated 6 paise to end at 70.10/$.

JSW Steel will replace Lupin in Nifty from September 28.

OUTLOOK

Today morning, Nikkei is up 0.3% but Hang Seng and Shanghai are marginally lower. SGX Nifty is suggesting a marginally lower start for our market.

After Nifty achieved 11650 target, we had given next level of 11770 in yesterday's report. Nifty yesterday touched a high of 11760, nearly achieving this target and ended at 11738.

11760, the top made yesterday, is the immediate hurdle, above which 11810 would be the net upside target to eye.

11590 continues to be immediate support on the hourly chart, with the stop-loss of which, existing longs should be held on to.