11695 CONTINUES TO BE IMMEDIATE HURDLE; 11381 IMMEDIATE SUPPORT

11695 CONTINUES TO BE IMMEDIATE HURDLE; 11381 IMMEDIATE SUPPORT

WORLD MARKETS

US indices fell 0.5%-1.5% on worries about President Donald Trump’s political future.

House Speaker Nancy Pelosi announced a formal impeachment inquiry into President Donald Trump. Trump, in a call earlier this year with Ukraine’s leader, Volodymyr Zelensky, allegedly pressured him to investigate Democratic presidential hopeful Joe Biden’s family.

Trump said he would release the full transcript of the controversial call.

Separately, in a speech at the United Nations General Assembly, Trump sharply criticized what he called China’s unfair trade practices , saying he would not accept a “bad deal” between the United States and China.

Brent crude futures fell $1.35, or 2%, to $63.42 a barrel and WTI futures fell $1.12, or 1.9%, to $57.52 a barrel.

In Europe, FTSE and DAX fell 0.5% and 0.3% respectively while CAC ended little changed. In a landmark case, the U.K.’s highest court ruled that Prime Minister Boris Johnson’s suspension of parliament for five weeks until October 14 was unlawful.

AT HOME

Bulls took a breather after two-day sprint as benchmark indices ended little changed after a range-bound but choppy session. Sensex settled at 39097, up 7 points while Nifty lost 12 points to finish at 11588. BSE mid-cap index fell half a percent while small-cap index rose 0.2%. BSE IT and Teck indices climbed 2.3% and 2% respectively, becoming top gainers among the sectoral indices while Capital Goods and Metal indices were the top losers, down 1.8% and 1.7% respectively.

FIIs net sold stocks and stock futures worth Rs 828 cr and 818 cr respectively but net bought index futures worth Rs 886 cr. DIIs were net buyers to the tune of Rs 473 cr.

Rupee depreciated 7 paise to end at 71/$.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.3%-0.6% and SGX Nifty is suggesting about 20 points lower start for our market.

11695, the top made on Monday, also coincides with a downward sloping trendline adjoining tops made in June and July 2019 and hence is immediate resistance, a crossover of which is required for a fresh upmove. If that happens, 11981, the top made in July, would be the next target.

Meanwhile, 11381, the lower end of the gap created by Monday's gap up opening, continues to be immediate support, with the stop-loss of which, trading longs can be held on to.