11460 CONTINUES TO BE IMMEDIATE SUPPORT; 11618 IMMEDIATE HURDLE

 

11460 CONTINUES TO BE IMMEDIATE SUPPORT; 11618 IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices fell 0.5%-1.3%, with Nasdaq reaching 10% correction level from the top, as tech sell-off extended. Delay in further coronavirus stimulus and uncertainty over timing of a viable coronavirus vaccine also weighed on the sentiment.

 

Talking on stimulus, President Trump said Wednesday he liked “the larger numbers,” urging GOP lawmakers to go for a bigger coronavirus stimulus, but his comments left Republicans skeptical.

 

Health officials said coronavirus vaccinations would be in limited quantities this year and not widely distributed for six to nine months. Meanwhile, the World Health Organization’s regional director for Europe on warned of a “very serious situation” unfolding in Europe.

 

Brent crude futures rose 2.3% to $43.21 a barrel while U.S. crude futures settled 81 cents, or 2%, higher at $40.97 per barrel. OPEC and its allies said the group would crack down on countries that failed to comply with output cuts and planned to hold an extraordinary meeting in October if oil markets weaken further.

 

Main European markets eased 0.4%-0.7%. The Bank of England left interest rates unchanged and maintained its current level of asset purchases, but warned that the outlook for the economy remains “unusually uncertain.”

 

AT HOME

 

Benchmark indices slipped eight tenth of a percent, snapping two-day winning streak. Sensex settled at 38979, down 323 points while Nifty lost 88 points to finish at 11516. BSE mid-cap and small-cap indices fell 0.2% and 0.5% respectively, snapping 5-day rising streak. BSE Realty index tumbled 1.9%, becoming top loser among the sectoral indices, followed by 1.3% lower Metal index. Healthcare and IT indices rose 0.5% and 0.2% respectively, becoming top gainers.

 

 

FIIs net sold stocks, index futures and stock futures worth Rs 250 cr, 673 cr and 1159 cr respectively. DIIs were net sellers to the tune of Rs 1068 cr.

 

Rupee depreciated 13 paise to end at 73.65/$.

 

OUTLOOK

 

Today morning, Asian markets are flat to modestly higher and SGX Nifty is suggesting a flattish start for our market.

 

In yesterday's report we had said that 20-DMA, placed around 11460, would act as immediate support and trading longs can be held on to with the stop-loss of the same.

 

Nifty yesterday slipped to touch a low of 11498 before closing at 11516.

 

11460, where 20-DMA is placed, continues to be immediate support. If 11460 breaks, 11360, where 34-day moving average is placed, would be the next support.

 

11618, the top made Wednesday, is the immediate hurdle, upon crossover of which, 11794, the top made on 31st August, would be the next major target.