11181-10901 CONTINUES TO BE IMMEDIATE RANGE

11181-10901 CONTINUES TO BE IMMEDIATE RANGE

WORLD MARKETS

US indices fell 0.7%-0.8% to break three-session winning streak as treasury yields declined after two days of recovery.

 The benchmark 10-year yield fell about 5 basis points to 1.54%.

Brent crude rose 3 cents to $59.77 a barrel while US oil fell 11 cents to $56.10.

European markets fell 0.5%-1.3% as worries heightened over Italy's mounting political crisis.  Italian Prime Minister announced he would resign from the government. It comes after Lega party pulled the plug on his coalition with the anti-establishment Five Star Movement.

AT HOME

Sensex and Nifty ended lower by 0.2% and 0.3% respectively after a choppy session, breaking three-day winning streak. Sensex lost 74 points to settle at 37328 while Nifty finished at 11017, down 37 points. BSE mid-cap and small-cap indices fell 0.6% each. BSE Metal and Basic Material indices tumbled 1.7% and 1.4% respectively, becoming top losers among the sectoral indices while IT and Auto indices were the top gainers, up 1.3% and 1.2% respectively.

FIIs net bought stocks and index futures worth Rs 373 cr and 504 cr respectively but net sold stock futures worth Rs 562 cr. DIIs were net buyers to the tune of Rs 286 cr.

Rupee depreciated 27 paise to end at 71.70/$.

Yes Bank shares slipped after CG Power, in which Yes Bank holds 12.8% stake, disclosed certain suspect transactions, which led to potential understatement of not only the company’s liabilities, but also advances to related and unrelated parties of the company and the group.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.2%-0.6% and SGX Nifty is suggesting about 20 points 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 11076 in the initial trade, slipped to end at 11017 and is set to open around 11000 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. If that gets violated, 10782, the bottom made on 5^th August, would be the crucial support to eye.