11345 CONTINUES TO BE UPSIDE LEVEL TO EYE; 11075 CONTINUES TO BE IMMEDIATE SUPPORT

 

11345 CONTINUES TO BE UPSIDE LEVEL TO EYE; 11075 CONTINUES TO BE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Dow and S & P 500 fell 0.5% each while Nasdaq eased 0.3% to snap three-day winning streak as virus resurgence dampened market sentiment. Markets also looked forward to the first U.S. presidential debate between Democrat Joe Biden and Republican Donald Trump later on Tuesday.

 

New York City Mayor said the city’s daily positive rate of coronavirus tests is back above 3% for the first time in months.

 

Brent futures for November delivery fell $1.60, or 3.8%, to $40.83 a barrel, while WTI crude fell $1.31, or 3.2%, to settle at $39.29 per barrel.

 

European markets fell 0.2%-0.5%. Final euro zone economic sentiment rose to 91.1 in September from 87.5 in August, while sentiment in the U.K. rose to 83.0 from 75.1.

 

After the US markets closed, Regeneron said its REGN-COV2 drug reduced viral levels and improved symptoms in non-hospitalized coronavirus patients.

 

AT HOME

 

After rising more than half a percent at the open, benchmark indices gave away all the gains through the session to end little changed. Sensex settled at 37973, down 8 points while Nifty lost 5 points to finish at 11222. BSE mid-cap index fell 0.2% while small-cap index closed flat. BSE Consumer Durables and Metal indices rose 2% and 1.8% respectively, becoming top gainers among the sectoral indices while Telecom index fell 2.1%, becoming top loser, followed by 1.5% lower Utilities index.

 

FIIs net sold stocks and index futures worth Rs 1457 cr and 644 cr respectively but net bought stock futures worth Rs 133 cr. DIIs were net buyers to the tune of Rs 576 cr.

 

Rupee depreciated 8 paise to end at 73.85/$.

 

OUTLOOK

 

China's September services PMI has come in at 55.9, up from 55.2 in August. Manufacturing PMI has improved to 51.5 from 51, the expected figure being 51.2.

 

Today Hang Seng and Shanghai are up 0.9% and 0.3% respectively while Nikkei is off 0.3%. SGX Nifty is suggesting around 30 points higher start for our market.

 

In yesterday's report we had said that 11345, the 67% retracement level of the recent 11618-10790 fall, which also coincided with the 20-DMA, was the next upside target/resistance to eye and that immediate support on the hourly chart was placed at 11075, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a high of 11305 in the initial trade, slipped to end at 11222.

 

11345, the 67% retracement level of the recent 11618-10790 fall, continues to be upside target/resistance to eye.

 

11075 continues to be immediate support on the hourly chart was placed at 11075, with the stop-loss of which, trading longs could be held on to.

 

ENGLISH VERSION OF MY ARTICLE IN MONDAY'S SANDESH NEWSPAPER

 

After last week's consolidation, Nifty broke it's short-term moving averages at the start of this week and saw a big sell-off subsequently. At the bottom of week, the benchmark was down 6.2% but thanks to Friday's rebound, the losses were reduced to 4%. Still, this is the biggest weekly fall in 4-1/2 months. Nifty mid-cap index fell 5.2% while small-cap index was down 5.6%. All the NSE sectoral indices ended in red with Media and Metal indices leading the losses, down 9% and 8% respectively.

Coming back to Nifty, 10790, the low made during the week, roughly coincided with it's 200-day simple moving average. Hence 10790 would be the important support to eye going forward. If Nifty sustains below 10790, next meaningful support will come at 10400, where 34-week moving average is placed. On the way up, 11225, where an upward sloping trendline adjoining bottoms made on 14th August and 9th September is placed, would be the immediate resistance to eye. Above 11225, 11500, where a downward sloping trendline adjoining tops made on 31st August and 16th September is placed, would be the next hurdle to eye.

Banknifty fell 4.8% this week, extending the losing streak to fourth straight week and closing at 15-week low. 20405, the botoom made during the week, is the immediate suppor, upon breach of which 19700, where a trendline adjoining bottoms made in March and May is placed, would be the major support to eye. On the way up, 21400 is the immediate hurdle, upon crossover of which, 21850 would be next target to eye.

GARWARE TECHNICAL FIBRES (CMP: 1980): The stock has been consolidating in a narrow range for last one and a half month. A crossover of Friday's high, 2030, would confirm a breakout from this consolidation phase and would pave the way for fresh upmove. The stock should be bought above 2030 for the target of 2320. The stop-loss should be placed at 1886.

COFORGE (CMP:2304): The stock has been a big outperformer and hit it's all-time high on Friday. The stock also broke out of a trendline resistance on it's hourly chart with volumes which were twice than 10-day average volume. The stock can be bought at current rate for the target of 2451. The stop-loss should be placed at 2190.

INDIAMART (CMP: 5254): This is another outperformer which hit record high on Friday. The stock also broke out of ascending triangle formation on its hourly chart with good volumes. The stock can be bought at current rate for the target of 6000. The stop-loss should be placed at 4863.

RK FORGE (CMP: 299): The stock, on Friday, broke out of a channel formation on its hourly chart with good volumes. The stock can be bought at current rate for the target of 335. The stop-loss should be placed at 280.

11345 IS THE NEXT UPSIDE TARGET; 11075 IS IMMEDIATE SUPPORT

 

11345 IS THE NEXT UPSIDE TARGET; 11075 IS IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices surged 1.5%-1.9% after House Speaker Nancy Pelosi said another relief bill was still on the table and Florida lifted capacity restrictions on restaurants over the weekend.

 

Pelosi said that the Democrats were unveiling a new $2.2 trillion stimulus package, smaller than the more than $3 trillion proposed earlier in the crisis but still well above what Republican leaders have offered. The new bill would include enhanced unemployment benefits and aid to airlines and state and local governments, according to a summary.

 

Brent crude settled 51 cents, or 1.2%, higher at $42.43 per barrel while WTI rose 35 cents, or 0.9% to $40.60 per barrel. The dollar index slipped 0.33% to 94.27, its biggest daily percentage drop in a month.

 

European markets climbed 1.5%-3.2%

 

AT HOME

 

Benchmark indices soared 1.6% each, extending the winning streak to second straight day and wiping out more than half of the losses suffered in previous six sessions. Sensex settled at 37981, up 592 points while Nifty added 177 points to finish at 11227. BSE mid-cap and small-cap indices climbed 2.7% and 2.5% respectively. All the BSE sectoral indices ended in green with Power index and Bankex leading the tally, up 3.4% each.

 

FIIs net sold stocks worth Rs 27 cr but net bought index futures and stock futures worth Rs 709 cr and 777 cr respectively. DIIs were net buyers to the tune of Rs 542 cr.

 

Rupee depreciated 16 paise to end at 73.77/$.

 

OUTLOOK

 

Today morning, Hang Seng and Shanghai are marginally higher while Nikkei is off half a percent. SGX Nifty is suggesting around 20 points higher start for our market.

 

After Nifty rebounded from the 200-DMA support placed around 10800, we had said that 11225 was the immediate hurdle on the way up.

 

Nifty yesterday surged to 11239 before closing at 11227, crossing the 11225 hurdle decisively.

 

11345, the 67% retracement level of the recent 11618-10790 fall, which also coincides with the 20-DMA, is the next upside target/resistance to eye.

 

Immediate support on the hourly chart is palced at 11075, with the stop-loss of which, trading longs can be held on to.

 

10790 CONTINUES TO BE IMPORTANT SUPPORT; 11225 IS THE IMMEDIATE HURDLE

 

10790 CONTINUES TO BE IMPORTANT SUPPORT; 11225 IS THE IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices rose 1.3%-2.3% on Friday, registering best day in two weeks, as tech shares gained.

 

Shares of Apple climbed 3.8% while Amazon and Facebook rose 2.5% and se 2.5% and 2.1% respectively.

 

Brent crude fell 7 cents to $41.87 a barrel, while WTI crude settled 6 cents, or 0.2%, lower at $40.25.

 

In Europe, FTSE rose 0.3% while DAX and CAC fell 1.1% and 0.7% respectively.

 

For the week, Dow and S & P 500 fell 1.8% and 0.6% respectively, extending the losing streak to fourth straight week. Nasdaq however snapped 3-week losing streak by rising 1.1%. WTI crude fell 2% for the week.

 

AT HOME

 

Benchmark indices soared 2.3% each, snapping 6-day losing streak and recouping three fourth of yesterday's losses. Sensex settled at 37388, up 835 points while Nifty added 244 points to finish at 11050. BSE mid-cap and small-cap indices rose 2.9% and 2.3% respectively. All the BSE sectoral indices ended in green with Telecom and Teck indices leading the tally, up 5.7% and 4% respectively. 47 out of 50 Nifty stocks ended higher with Bajaj Finserve and HCL Tech being the top gainers, up 6.6% and 5.3% respectively.

 

FIIs net sold stocks worth Rs 2080 cr but net bought index futures and stock futures worth Rs 1285 cr and 1538 cr respectively. DIIs were net buyers to the tune of Rs 2071 cr.

 

Rupee appreciated 28 paise to end at 73.61/$.

 

For the week, Sensex and Nifty fell 3.8% and 4% respectively, suffering the worst weekly fall in nearly 4-1/2 months.

 

OUTLOOK

 

Data over the weekend showed China's industrial profits rose 19.1% in August. Meanwhile, new daily coronavirus cases topped 1000 in New York State on Saturday for the first time since early July.

 

Today morning, Asian markets are trading with gains in the vicinity of half a percent and SGX Nifty is suggesting around 70 points higher start for our market.

 

In Friday's report we had said that 10790, the low made Thursday, which coincided with the 200-DMA, was the important immediate support to eye and that 11225 was the immediate resistance to eye.

 

Nifty, after touching a low of 10854, surged to touch a high of 11072 before closing at 11050. The benchmark is set to open above 11100 today.

 

11225 continues to be immediate hurdle.

 

10790, the low made last week, continues to be important support.

 

NIFTY ACHIEVES 10800 TARGET

 

NIFTY ACHIEVES 10800 TARGET

 

WORLD MARKETS

 

US indices ended higher by 0.2%-0.4% after a choppy session.

 

Weekly unemployment claims totaled 870,000, higher than estimate of 850,000. Continuing claims declined slightly but were still higher than forecast.

 

Reports suggested that House Democrats are preparing a new $2.4 trillion stimulus plan as the party looks to restart negotiations with the White House following talks that fell apart last month.

 

Goldman Sachs cut its fourth quarter projection for US GDP growth to 3% on an annualized basis, down from 6%.

 

Brent crude future rose 8 cents, or 0.2%, to $41.85 a barrel while WTI crude settled 38 cents, or 1%, higher at $40.31 per barrel.

 

European markets fell 0.3%-1.3% as surging coronavirus cases weighed on the sentiment. The U.K.’s finance minister announced a new package of measures to contain unemployment.

 

AT HOME

 

Benchmark indices nosedived 3%, suffering the worst single day fall in four months and extending the losing streak to sixth straight day. Sensex settled at 36553, down 1114 points while Nifty lost 326 points to finish at 10805. Both the indices closed at more than 2-month low. BSE mid-cap and small-cap indices fell 2.1% and 2.3% respectively. All the BSE sectoral indices ended in red with IT and Auto indices leading the losses, down 4.4% and 3.6% respectively.

 

FIIs net sold stocks and index futures worth Rs 1886 cr and 1799 cr respectively but net bought stock futures worth Rs 494 cr. DIIs were net buyers to the tune of Rs 189 cr.

 

Rupee depreciated 32 paise to end at 73.89/$.

 

TCS tumbled on concerns that Tata group might sell a portion of their stake in TCS to raise money to buy Pallonji Mistry family's stake in Tata Sons.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.1%-0.7% and SGX Nifty is suggesting around 100 points higher start for our market.

 

In yesterday's report we had said that 11000, where 34-month moving average was placed, continued to be immediate support, upon breach of which 200-DMA, placed around 10800, would be next major support.

 

Nifty broke 11000 support in the initial trade itself and plunged all the way to 11790 before closing at 10805 and is set to open near 10900 today.

 

10790, the low made yesterday, is the important immediate support to eye. It that breaks, 10400, where 34-week moving average is placed, would be the next meaningful support.

 

On the way up, 11225 is the immediate resistance to eye.

 

10800 BELOW 11000; 11400 IS IMMEDIATE HURDLE

 

10800 BELOW 11000; 11400 IS IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices tumbled 1.9%-2.7% as tech shares slipped once again and uncertainty around the coronavirus pandemic and further stimulus weighed on the sentiment.

 

Federal Chair Jerome Powell said before Congress that further fiscal stimulus is still needed for the U.S. economic recovery to continue.

 

Brent crude rose 53 cents, or 1.3%, to $42.25 a barrel while WTI crude settled 13 cents, or 0.3%, higher at $39.93 per barrel after data showed that US crude and fuel inventories dropped last week.

 

Spot gold dipped 1.9% to $1,862.56 per ounce, it's lowest in over two-month as the dollar index hit an eight-week high.

 

European markets rose 0.4%-1.2%. IHS Markit’s preliminary euro zone composite PMI came in below expectations at 50.1, down from 51.9 in August. Spain revised its second-quarter GDP contraction to 17.8% quarter-on-quarter, less severe than the initial estimate of 18.5%.  U.K.’s flash composite PMI for September came in at 55.7, below expectations of 56.3 and down from 59.1 in August.

 

AT HOME

 

Benchmark indices ended lower by a fifth of a percent after a choppy session, extending the losing streak to fifth straight day and closing at the lowest level since 5th August. Sensex settled at 37668, down 65 points while Nifty lost 22 points to finish at 11131. BSE mid-cap and small-cap indices fell 0.3% and 0.1% respectively. BSE Telecom index collapsed 7.4%, becoming top loser among the sectoral indices, followed by 2.1% lower Power index. Consumer Durables and Realty indices were the top gainers, up 0.8% and 0.6% respectively.

 

FIIs net sold stocks and index futures worth Rs 3912 cr and 587 cr respectively but net bought stock futures worth Rs 1322 cr. DIIs were net buyers to the tune of Rs 1629 cr.

 

Rupee appreciated 1 paise to end at 73.57/$.

 

Parliament yesterday passed the three key labour reform bills that will provide greater flexibility to employers to hire and fire while ensuring social security for workers.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.5%-1.4% and SGX Nifty is suggesting around 130 points lower start for our market.

 

In yesterday's report we had said that 11000, where 34-month moving average was placed, was the next support to eye.

 

Nifty, after touching a low of 11024 rebounded to end at 11131 but is set to open near 11000 today.

 

11000, where 34-month moving average is placed, continues to be immediate support to eye. If that breaks, 200-DMA, placed around 10800, would be next major support.

 

20-DMA as well as 34-DMA, which are placed roughly around 11400, would work as immediate hurdle.

 

11000 IS NEXT SUPPORT; 11440 IMMEDIATE HURDLE

 

11000 IS NEXT SUPPORT; 11440 IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices gained 0.5%-1.7% as tech stocks, led by Amzon, rebounded, even as a likely delay in new fiscal stimulus by Congress and an increase in the number of coronavirus cases dampened hopes of a faster economic recovery.

 

In a prepared testimony, Fed Chair Powell said central bank remans committed to supporting the economy through its tools "for as long as it takes." He also noted that "many economic indicators show market improvement," though the path forward "continues to be highly uncertain."

 

Brent crude futures rose 27 cents or 0.6% to $41.71 a barrel and WTI crude futures rose 0.7% to $39.60 a barrel.

 

In Europe, FTSE and DAX rose 0.4% each while CAC eased 0.4%. UK Prime Minister Boris Johnson reversed the lifting of some lockdown measures in England.

 

AT HOME

 

Benchmark indices fell eight tenth of a percent, extending the losing streak to fourth consecutive day. Sensex settled at 37734, down 300 points. Nifty lost 97 points to finish at 11153,  its lowest in 1-1/2 month. BSE mid-cap and small-cap indices fell 1.7% and 1.6% respectively. BSE Industrials and Capital Goods indices were the top losers among the sectoral indices, down 2.5% each while IT and Teck indices were the top gainers, up 0.9% and 0.7% respectively.

 

FIIs net sold stocks and index futures worth Rs 2072 cr and 696 cr respectively but net bought stock futures worth Rs 840 cr. DIIs were net buyers to the tune of Rs 879 cr.

 

Rupee depreciated 20 paise to end at 73.58/$.

 

Adani Ports fell after Adani Gobal PTE, the Singapore-based global arm of the Adani Group, featured in Suspicious Activity Reports (SARs) filed by FinCEN, the top US financial watchdog.

 

OUTLOOK

 

Today morning, Hang Seng and Shanghai are little changed while Nikkei, which has opened after holidays, is down 0.7%. SGX Nifty is suggesting a flattish start for our market.

 

In yesterday's report we had said that 11218-11185 was the next important support zone.

 

Nifty broke this support zone and plunged all the way to 11084 before closing at 11153.

 

11000, where 34-month moving average is placed, is the next support to eye.

 

11440, where 20-DMA is placed, would work as immediate hurdle.

 

11218-11185 IS THE SUPPORT ZONE; 11450 IMMEDIATE HURDLE

11218-11185 IS THE SUPPORT ZONE; 11450 IMMEDIATE HURDLE

 

WORLD MARKETS

 

After plunging 2.5%-3.5% in the first half on account of allegations surrounding bank dealings and rising coronavirus infections, US indices rebounded later to end with much lesser cuts.  Dow and S & P 500 eased 1.8% and 1.2% respectively while Nasdaq fell just 0.1%. S&P 500 fell for the fourth consecutive day and the Dow had its worst day since Sept. 8.

 

Media reports, citing confidential documents submitted by banks to the U.S. government, said that several global lenders allegedly moved suspicious funds over a period of nearly two decades. Shares of Standard Chartered and HSBC tumbled following the news.

 

Meanwhile, reports suggested that U.K. is reportedly considering another national lockdown as daily new infections rise.

 

Coming back to the US, prospects of further U.S. coronavirus fiscal stimulus became bleaker as lawmakers brace for a Supreme Court confirmation fight as President Donald Trump rushes to nominate a successor to Justice Ruth Bader Ginsburg, who died on Friday.

 

Brent crude slipped $2, or 4.6%, to $41.15 a barrel while WTI crude fell $1.80, or 4.4%, to settle at $39.31 a barrel. Dollar index rose 0.6% to 93.55. Spot gold dropped 2.1% to $1,909.05 per ounce.

 

European markets tumbled 3.4%-4.4%.

 

AT HOME

 

Benchmark indices nosedived more than 2%, extending the losing streak to third straight day and closing at the lowest level in more than a month. Sensex settled at 38034, down 811 points while Nifty lost 254 points to finish at 11250. BSE mid-cap and small-cap indices collapsed 3.4% and 3.6% respectively. All the BSE sectoral indices ended in red with Telecom and Realty indices leading the losses, down 5.7% each.

 

FIIs net sold stocks and stock futures worth Rs 540 cr and 330 cr respectively but net bought index futures worth Rs 432 cr. DIIs were net sellers to the tune of Rs 518 cr.

 

Rupee appreciated 6 paise to end at 73.37/$.

 

OUTLOOK

 

Today morning, Shanghai and Hang Seng are down 1% and 0.6% respectively while Nikkei continues to be shut. SGX Nifty is suggesting around 25 points higher start for our market.

 

Readers would recall that last week, on Thursday, we had advised trailing the stop-loss in long positions to 11460, where 20-DMA was placed. In yesterday's report we had said that 11400, the 50% retracement level of the recent 11185-11618 upmove, which also coincides with 34-DMA, is the next important support to eye.

 

Nifty broke 11400 support and plunged all the way to 11218 before closing at 11250.

 

11218, the low made yesterday, also coincided with a trendline support adjoining recent bottoms on the daily chart.  Immediate previous bottom on the daily chart is placed at 11185. This makes 11218-11185 next important support zone.

 

11450, where 20-DMA is placed, would work as immediate hurdle.

  

11400 IS THE SUPPORT TO EYE; 11618 CONTINUES TO BE IMMEDIATE HURDLE

 

11400 IS THE SUPPORT TO EYE; 11618 CONTINUES TO BE IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices fell 0.9%-1.1% on Friday, with S & P 500 and Nasdaq extending the losing streak to third straight day, as profit booking continued in high-flying tech stocks. Tensions between China and the U.S. also dampened market sentiment.

 

Apple dropped more than 3% while Microsoft and Alphabet pulled back by 1.2% and 2.4%, respectively.

 

U.S. government said it will block all TikTok and WeChat downloads in the country on Sunday.

 

Brent crude fell 55 cents to $42.75 a barrel while WTI settled 14 cents, or 0.3%, higher at $41.11 per barrel.

 

In Europe, FTSE and DAX slipped 0.7% each while CAC was down 1.2%. The World Health Organization warned of a “very serious situation” arising in Europe as cases rise significantly across the continent, forcing a reimplementation of lockdown measures in certain regions. Meanwhile, EU Chief Brexit negotiator Michel Barnier said that a deal with the U.K. is still possible. British retail sales rose by 0.8% in August, continuing a steady incline and slightly outpacing average economist expectations.

 

For the week, Dow ended flat while S & P 500 and Nasdaq fell 0.6% each. Main European markets fell 0.4%-1.1%. In Asia, Shanghai climbed 2.4% while other markets ended flat to marginally lower. WTI crude rallied 7.4%, snapping 2-week losing streak.

 

AT HOME

 

After rising nearly half a percent, benchmark indices slipped in late noon trade to end modestly lower, extending the losing streak to second straight day. Sensex settled at 38845, down 134 points while Nifty fell 11 points to finish at 11505. BSE mid-cap index gained 0.3% while small-cap index fell 0.3%. BSE Healthcare and Telecom indices climbed 3.5% and 2.7% respectively, becoming top gainers among the sectoral indices while Bankex and Finance indices were the top losers, down 1.1% each.

 

FIIs net bought stocks and index futures worth Rs 205 cr and 1900 cr respectively but net sold stock futures worth Rs 1449 cr. DIIs were net sellers to the tune of Rs 101 cr.

 

Rupee appreciated 20 paise to end at 73.44/$.

 

Dr Reddy shares surged after it settled a patent litigation with Celgene, which will allow the company to sell generic version of a blood cancer drug in the US post-March 2022.

 

Cipla climbed after the rival Perrigo pharma voluntarily recalled a key asthama drug.

 

For the week, Sensex ended flat while Nifty rose 0.4%.

 

OUTLOOK

 

Today, markets in Japan are closed for a holiday. Hang Seng and Shanghai are down 0.5% and 0.1% respectively and SGX Nifty is suggesting around 40 points lower start for our market.

 

In Friday's report we had said that 11460, where 20-DMA was placed, continued to be immediate support and that 11618, the top made on Wednesday was the immediate hurdle.

 

Nifty, after touching a high of 11584 in the initial trade, plunged to 11446 before closing at 11505 and is set to open near 11450 today.

 

11400, the 50% retracement level of the recent 11185-11618 upmove, which also coincides with 34-DMA, is the next important support to eye.

 

On the way up 11618, the top made last week, continues to be immediate hurdle.