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.