11553-11325 IS THE IMMEDIATE RANGE

 

11553-11325 IS THE IMMEDIATE RANGE

 

WORLD MARKETS

 

Dow and S & P 500 gained 0.8% each while Nasdaq rose 1.4%, with S & P 500 and Nasdaq hitting fresh record highs, as tech shares rallied. Better-than-expected manufacturing data also aided the sentiment.

 

The final read on the ISM August manufacturing PMI came in at 56, a 19-month high, as new orders hit their highest level since 2004.

 

Apple climbed 4%, extending previous day's 3% upmove following a stock split. Walmart surged more than 6% after the retailer announced it would launch its own membership program, Walmart+, later this month.

 

Brent crude futures rose 30 cents, or 0.7%, to settle at $45.58 per barrel, while WTI crude futures settled 15 cents, or 0.4%, higher at $42.76 per barrel.

 

In Europe, DAX rose 0.2% while FTSE and CAC fell 1.7% and 0.2% respectively. Eurozone Annual headline inflation came in at -0.2% in August, down from 0.4% in July. Unemployment rate rose once again, to 7.9% for the month of July.

 

Earlier, China’s Caixin/Markit manufacturing PMI for the month of August came in at 53.1. The reading beat expectation and was best in nearly 10 years.

 

AT HOME

 

Benchmark indices ended higher by 0.7% each after a choppy session. Sensex settled at 38900, up 272 points while Nifty added 82 points to finish at 11470. BSE mid-cap and small-cap indices rose 1.2% and 0.5% respectively. BSE Telecom and Metal indices climbed 3.8% and 3.4% respectively, becoming top gainers among the sectoral indices while IT and Oil & Gas indices were the top losers, down 0.9% and 0.4% respectively.

 

FIIs net bought stocks and index futures worth Rs 486 cr and 1035 cr respectively but net sold stock futures worth Rs 184 cr. DIIs were net sellers to the tune of Rs 775 cr.

 

Rupee appreciated 75 paise to end at 72.86/$.

 

In the much awaited AGR case, the Supreme Court today announced 10 years for staggered payment of AGR dues with 10% upfront payment. In case of spectrum sale, the court said that whether spectrum sale can be allowed under Insolvency & Bankruptcy Code (IBC) is to be decided by National Company Law Tribunal.

 

India's Augusts Manufacturing PMI rose to 52 from 46 in July, rising above the 50 mark for the first time, which separated contraction from expansion.

 

Maruti August sales rose 17.1% y-o-y to 1.24 lk units. M & M tractor sales surged 65% to 24458 units while auto sales fell 16% to 30426 units. Ashok Leyland sales fell 31% to 6325 units. Eicher Motor's Royal Enfield sales fell 5% to 50144 units while commercial vehicle sales fell 30% to 2477 units. Hero Motocorp sales rose 7.6% to 5.8 lk. TVS Motors sales fell 1.1% to 2.87 lk units.

 

OUTLOOK

 

Today morning, Nikkei is up 0.4% while Hang Seng and Shanghai are down 0.4% and 0.1% respectively. SGX Nifty is suggesting a flattish start for our market.

 

In yesterday's report we had said that 11325, the low made Monday, also coincided with 20-DMA, and hence was the immediate support to eye. We had also said that 11550 was the immediate hurdle on the hourly chart above which, 11794, the top made yesterday, would be major hurdle.

 

Nifty, after touching a high of 11553, closed at 11470.

 

11553, the top made yesterday, is the immediate hurdle to eye, upon crossover of which 11640, the 67% retracement level of the 11794-11325 fall, would be the next target/resistance.

 

11325, the low made Monday, continues to be immediate support.