11181-10901 CONTINUES TO BE IMMEDIATE RANGE

11181-10901 CONTINUES TO BE IMMEDIATE RANGE

WORLD MARKETS

US indices climbed 1%-1.4% as treasury yields extended Friday's recovery and  after the U.S. agreed to extend a temporary reprieve to Chinese telecom giant Huawei. Stimulus measures/talks from Central banks also helped.

The People’s Bank of China unveiled an interest-rate reform over the weekend aimed at lowering borrowing costs for Chinese companies. In Germany, the government is reportedly preparing fiscal stimulus measures in case the country’s economy falls into a recession

The benchmark 10-year Treasury yields rose to about 1.6% yesterday from around 1.54% last week.

Commerce Secretary Wilbur Ross said the U.S. extended a license for 90 days that allows Huawei to continue business with the U.S. companies to service existing customers.

Brent crude rose 95 cents, or 1.6%, to $59.59 a barrel and WTI crude futures gained $1.34, or 2.4%, to settle at $56.21 a barrel following a weekend attack on a Saudi oil facility.

European markets gained 1%-1.9%.

AT HOME

After rising nearly a percent in first half, benchmark indices slipped later to end just marginally higher. Sensex settled at 37402, up 52 points while Nifty added 6 points to finish at 11053. BSE mid-cap and small-cap indices gained 0.2% and 0.5% respectively. BSE Consumer Durable and Capital Goods indices climbed 1.6% and 1.2% respectively, becoming top gainer among the sectoral indices. Oil & Gas and Auto indices fell 0.6% each, becoming top losers.

FIIs net sold stocks, index futures and stock futures worth Rs 306 cr, 72 cr and 327 cr respectively. DIIs were net buyers to the tune of Rs 386 cr.

Rupee depreciated 28 paise to end at 71.43/$.

OUTLOOK

Today morning, Asian markets are trading mixed with modest changes and SGX Nifty is suggesting a modestly lower start for our market.

In yesterday's report we had reiterated the view 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, after touching a high of 11146 in the first half, slipped to end at 11053 and is set to open lower today.

11181, the top made on 9th August, continues to be immediate hurdle, a crossover of which is required for the next leg of upmove. 10901, the bottom made last week, continues to be immediate support.