NIFTY REBOUNDS FROM THE VICINITY OF 10866-10750 SUPPORT ZONE; 11250 CONTINUES TO BE IMMEDIATE HURDLE

NIFTY REBOUNDS FROM THE VICINITY OF 10866-10750 SUPPORT ZONE; 11250 CONTINUES TO BE IMMEDIATE HURDLE

WORLD MARKETS

Dow and S & P 500 fell 0.3% and 0.1% respectively while Nasdaq gained 0.2% following the White House's restatement of its tough stance on trade.

Trump, speaking at the United Nations General Assembly, said the U.S. "will no longer tolerate abuse" on trade. Trump's statement came after U.S. Trade Representative Robert Lighthizer said his country was ready to move ahead on a trade deal with Mexico even if it excluded Canada.

The 10-year Treasury note yield climbed to 3.11%. The Federal Open Market Committee begins its two-day monetary policy meeting, with markets expecting the central bank to raise rates by a quarter point.

US consumer confidence rose in September to its highest level in about 18 years.

US crude rose 20 cents to $72.28 while Brent rose 70 cents or nearly a percent to $81.90 a barrel.

European markets climbed 0.7%-1.7% with FTSE on the top.

AT HOME

Benchmark indices ended higher by nearly a percent after wild intraday swings, breaking five-day losing streak. Sensex settled at 36652, up 347 points while Nifty added 100 points to finish at 11067. BSE mid-cap index gained 0.4% but the small-cap index fell 0.7%. BSE Healthcare index and Bankex climbed 1.8% and 1.4% respectively, becoming top gainers among the sectoral indices while Realty index tumbled 1.7%, becoming top loser, followed by 0.9% lower Utilities index.

FIIs net sold stocks and index futures worth Rs 1232 cr and 793 cr respectively but net bought stock futures worth Rs 649 cr. DIIs were net buyers to the tune of Rs 2284 cr.

Rupee depreciated 6 paise to end at 72.69/$.

OUTLOOK

Today morning, Nikkei is off 0.2% but Hang Seng and Shanghai are up 0.7% and 0.3% respectively. SGX Nifty is suggesting about 40 points higher start for our market.

In yesterday's report we had reiterated the view that "10866-10750 is a crucial support zone as 10866, the bottom made on Friday, also coincides with a trendline adjoining bottoms made in December 2016 and March 2018 while 34-week and 200-day moving averages are placed around 10800 and 10750 respectively".

Nifty, after touching a low of 10882, rebounded sharply to end at 11067, holding on to this support zone, and is set to open above 11100 today.

11250, which is the immediate previous bottom on the daily chart, continues to be immediate hurdle to eye, a crossover of which is required for a fresh upmove. 10866-10750 continues to be important support zone.