NIFTY RETREATS FROM 11536 HURDLE; 11362 CONTINUES TO BE IMMEDIATE SUPPORT

 

NIFTY RETREATS FROM 11536 HURDLE; 11362 CONTINUES TO BE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Dow fell 0.2% while S & P 500 and Nasdaq rose 0.4% and 0.8% respectively to hit fresh record highs.

 

U.S. Census reported a 36% surge in sales of newly built homes in July. The Conference Board Consumer Confidence Index, however, fell for a second straight month to 84.8 in August from July’s 91.7.

 

China and the U.S. resumed trade talks. In a statement, the Office of the U.S. Trade Representative said that both sides made “progress and are committed to taking the steps necessary to ensure the success of the” phase one trade deal.

 

Brent crude futures rose 83 cents, or 1.8%, to $45.96 a barrel, while WTI crude rose 73 cents, or 1.7%, to settle at $43.35 per barrel.

 

In Europe, FTSE slipped 1.1% while DAX and CAC were flat. Data showed Germany's second quarter GDP shrank by 9.7% from the previous three month period.

 

AT HOME

 

After rising half a percent in the initial trade, benchmark indices gave away most of the gains through the session to end just marginally higher. Sensex settled at 38843, up 44 points while Nifty added 6 points to finish at 11472. Nifty mid-cap and small-cap indices gained 0.3% and 0.5% respectively. BSE Bankex and Finance indices climbed 1.2% and 1% respectively, becoming top gainers among the sectoral indices while Realty index tumbled 2.1%, becoming top loser, followed by 0.6% lower Utilities and FMCG indices.

 

FIIs net bought stocks worth Rs 1481 cr but net sold index futures and stock futures worth Rs 144 cr and 328 cr respectively. DIIs were net buyers to the tune of Rs 173 cr.

 

Rupee depreciated 1 paise to end at 74.32/$.

 

Finance Minister Nirmala Sitharaman said the GST Council would look into the auto industry’s demand for lowering the tax rate on two-wheelers

 

OUTLOOK

 

Today morning, Nikkei is little chagegd while Hang Seng and Shanghai are up around three tenth of a percent. SGX Nifty is suggesting around 20 points higher start for our market.

 

In yesterday's report we had said that 11536, the upper end of the gap created by gap-down opening on 28th February, continued to be the next target/resistance and had advised trailing stop-loss in long positions to 11362.

 

Nifty, after touching a high of 11526, retreated to end at 11472 and is set to open near 11500 today.

 

11536, the upper end of the gap created by gap-down opening on 28th February, continues to be immediate resistance, above which, 11630 would be the next target.

 

11362, the low made Friday, continues to be immediate support, with the stop-loss of which, trading longs can be held on to.