11620 IS THE IMMEDIATE SUPPORT; 11760 IMMEDIATE HURDLE

11620 IS THE IMMEDIATE SUPPORT; 11760 IMMEDIATE HURDLE

WORLD MARKETS

Dow ended marginally in the red, S & P 500 was flat while Nasdaq gained 0.3% on Friday as Boeing and Goldman Sachs fell while Apple and Nike rose.

Media reports citing US President Trump said that the US and Canada have not been able to seal a deal on Trade issues.

Trump also threatened to withdraw the U.S. from the World Trade Organization, (WTO) if they do not "shape up," escalating fears over global trade turmoil.

The University of Michigan's monthly survey of consumers hit 96.2 in the final reading of August, better than the drop to 95.5 expected.

Shares of Coca-Cola fell nearly 1% after the company said it agreed to buy coffee chain Costa for $5.1 billion.

Brent crude oil fell 35 cents to $77.42 and U.S. light crude ended Friday's session down 45 cents lower at $69.80 a barrel.

European markets fell 0.7%-1.3%. Auto stocks fell the most after Trump reportedly said the European Union's proposal to eliminate auto tariffs was "not good enough." He also said that the bloc's trading policies were "almost as bad as China."

Inflation in Eurozone, the 19 countries sharing the single currency, eased to 2% in August, down from 2.1% in July.

For the week US indices gained 0.7%-2.1% with Nasdaq on the top. In Europe, DAX and CAC fell 0.2% each while FTSE tumbled 1.7%. In Asia, Nikkei and Hang Seng added 1.2% and 0.8% respectively but Shanghai was off 0.2%.

AT HOME

Sensex lost 0.1% while Nifty ended marginally in the green on the last day of the week and month. Sensex settled at 38645, down 45 points while Nifty added 4 points to finish at 11680. BSE mid-cap and small-cap indices gained 0.4% and 0.6% respectively. BSE Healthcare index soared 2.2%, becoming top gainer among the sectoral indices, followed by 1.4% higher IT index. Energy index tumbled 1.5%, becoming top loser, followed by 0.6% lower Metal index. 

FIIs net sold stocks, index futures and stock futures worth Rs 213 cr, 1110 cr and 985 cr respectively. DIIs were net buyers to the tune of Rs 172 cr.

Rupee depreciated 25 paise to end at 70.99/$.

For the week, Sensex and Nifty gained 1% each, extending the winning streak to sixth consecutive week. For the month, Sensex and Nifty gained 2.8% each.

India's GDP growth surged to 8.2% in April-June quarter, the highest in two years. Core sector, comprising eight key industries, grew at 6.6% in July, down from 7.6% in June.

Maruti August sales fell 3.5% to 1.58 lakh units but Ashok Leyland posted 27% growth at 17386 units. TVS Motors posted 8% growth at 3.43 lakh units. Tata Motors registered 27% growth at 58250 units. Escorts sold 4812 units, a growth of 5%. M & M auto sales were up 14% at 48324 units. Hero Motocorp sold 6.85 lakh units, a growth of 1%.

July GST collection stood at Rs 93960 cr, down from Rs 96483 in July.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.4%-0.6% but SGX Nifty is suggesting about 20 points higher start for our market.

Nifty has been moving in a rising channel formed by rising tops and bottoms on the daily chart for last two months. On last count, after getting resisted near the upward sloping trendline adjoining tops at 11760, Nifty has consolidated over last couple of days and is now close to the lower end of the channel mentioned above. This support is placed around 11620. Below 11620, 11532, the bottom made on 24th August, would be the next support.

11760, the top made last week, is the immediate hurdle, above which, upward sloping trendline adjoining recent tops, which is now placed around 11870, would be the next upside target to eye.

Traders are advised to hold long positions with the stop-loss of 11620.