11490, 11593 ARE UPSIDE LEVELS TO EYE; 11327-11298 IS THE SUPPORT ZONE

 

11490, 11593 ARE UPSIDE LEVELS TO EYE; 11327-11298 IS THE SUPPORT ZONE

 

WORLD MARKETS

 

US indices plunged 1.4%-2% as tech stock resumed sell-off.

 

Facebook, Amazon, Apple, Netflix, Alphabet and Microsoft all closed sharply lower.

 

Weekly jobless claims stood at 884,000, slightly higher than the expected figure of 850,000.

 

Brent crude futures fell 25 cents or 0.6% to $40.54 a barrel while WTI crude fell 75 cents or 2% to $37.30 per barrel after data from EIA showed crude inventories rose 2.0 million barrel last week as against the forecast of 1.3 million barrel fall.

 

European markets fell 0.2%-0.4%. The ECB kept its interest rates and coronavirus-stimulus program unchanged and said it now expects euro zone GDP to contract 8% this year, a modest improvement on the 8.7% contraction it had projected in June.

 

AT HOME

 

Sensex and Nifty climbed 1.7% and 1.5% respectively, registering their biggest single day gain in more than 2-months and snapping 2-day losing streak. Sensex settled at 38840, up 646 points while Nifty added 171 points to finish at 11449. BSE mid-cap and small-cap indices rose 0.9% and 1.3% respectively, snapping 4-day losing streak. BSE Energy index soared 6.3%, becoming top gainer among the sectoral indices, followed by 3.6% higher Oil & Gas index. Telecom and Metal indices were the top losers, down 1.4% and 0.9% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 838 cr, 609 cr and 447 cr respectively. DIIs were net sellers to the tune of Rs 317 cr.

 

Rupee appreciated 7 paise to end at 73.45/$.

 

Reliance soared on media reports that it is offering to sell a roughly $20 billion stake in its retail arm to Amazon.com Inc.

 

OUTLOOK

 

Today morning, Shanghai is little lower while Nikkei and Hang Seng are modestly higher. SGX Nifty is suggesting around 35 points lower start for our market.

 

In yesterday’s report we had said that 11185, the low made Wednesday, also coincided with the 67% retracement level of the 10882-11794 upmove seen in August, and hence was the immediate support to eye. We had also said that 11437, the top made on Tuesday, would act as the immediate hurdle.

 

Nifty surged to cross the 11437 hurdle touch a high of 11464 before closing at 11449. The benchmark is set to open near 11400 today.

 

11490, the 50% retracement level of the recent 11794-11185 fall, is the immediate hurdle to eye on the way up, upon crossover of which, 11593, the 67% retracement level of this fall, would be the next target.

 

11327-11298, the gap created by yesterday's gap-up opening, would act as immediate support zone.

 

India’s August CPI and July IIP data will be released today.