10782 BELOW 10901; 11034 IS IMMEDIATE HURDLE

10782 BELOW 10901; 11034 IS IMMEDIATE HURDLE

WORLD MARKETS

US indices gained 0.8%-0.9%  as strong quarterly results from retailers such as Target and Lowe's lifted sentiment.

Target shares surged more than 20% to a record after posting better-than-expected results and 3.4% growth in same-store sales. Lowe's jumped 10.4%.

The minutes of the latest Fed meeting showed the Fed has no "pre-set course" for cutting rates. The Fed cut rates by 25 basis points in July, while signaling that it was only a "midcycle adjustment" and the central bank was not returning to the stimulus era.

European markets climbed 1.1%-1.8%.

AT HOME

Sensex and Nifty slipped 0.9% and 0.7% respectively, extending the losing streak to second straight day. Sensex lost 267 points to settle at 37060 while Nifty finished at 10918, down 98 points. BSE mid-cap and small-cap indices tumbled 1.3% and 1.4% respectively. Nifty mid-cap and small-cap indices nosedived 1.6% and 1.9% respectively with the former closing at the lowest level since 24th January 2017, marking a 31-month low.

Except a 0.2% lower IT index, all the BSE sectoral indices ended in red with Metal index leading the losses, down 2.9%, followed by 2.2% lower Industrials, Basic Material and Capital Goods indices.

FIIs net sold stocks, index futures and stock futures worth Rs 771 cr, 137 cr and 328 cr respectively. DIIs were net buyers to the tune of Rs 354 cr.

Rupee appreciated 14 paise to end at 71.56/$.

OUTLOOK

Today morning, Nikkei and Shanghai are trading with modest gains while Hang Seng is flat. SGX Nifty is suggesting a marginally lower start for our market.

For past couple of days we have been mentioning that 11181, the top made on 9th August, continues to be immediate hurdle while 10901, the bottom made last week, continues to be immediate support.

Nifty yesterday plunged to touch a low of 10906 before closing at 10918 and is set to open marginally lower today.

10901 continues to be immediate support upon breach of which, 10782, the low made on 5th August, would be the next support to eye.

Meanwhile, 11034, the top made yesterday, would now act as immediate hurdle, upon crossover of which, 11181, the top made on 9^th August, would the bigger hurdle to eye.