11593 ABOVE 11493; 11350 IS THE IMMEDIATE SUPPORT

 

11593 ABOVE 11493; 11350 IS THE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Dow rose 0.5%, S & P 500 ended flat while Nasdaq fell 0.6% on Friday after a volatile session.

 

U.S. consumer price index rose by 0.4% in August as against expected rise of 0.3%.

 

Brent crud rose 16 cents, or 0.4%, to $40.22 a barrel while WTI crude settled 3 cents, or 0.1%, higher at $37.33.

 

In Europe, FTSE and CAC rose 0.5% and 0.2% respectively while DAX ended little changed. The U.K. economy grew 6.6% in July on a monthly basis, according to initial estimates.

 

Tense negotiations between the U.K. and the European Union were the key focus area. On Thursday, the EU urged the U.K. to abandon its plan to renege on the Brexit Withdrawal Agreement and threatened legal action. On Friday, Britain announced it had secured its first major trade deal post-Brexit, agreeing in principle to a free trade deal with Japan.

 

This was the second straight week of losses for the US markets. Nasdaq and S & P 500 fell 4.1% and 2.5% respectively for theri biggest weekly decline since March and June respectively. Dow fell 1.7%. WTI crude declined more than 6%, marking the second weekly drop.

 

AT HOME

 

Benchmark indices ended marginally higher after a rangebound session, extending the winning streak to second straight day. Sensex settled at 38854, up 14 points while Nifty added 15 points to finish at 11464. BSE mid-cap and small-cap indices rose 0.6% and 0.5% respectively. Except 1% and 0.1% lower Telecom and Utilities indices respectively, all the BSE sectoral indices ended in green with Realty and IT indices leading the tally, up 1.3% and 1.2% respectively. Wipro and SBI climbed 2.8% each, becoming top Nifty gainers whereas ZEEL and Indusind Bank were the top losers, down 2.2% and 1.7% respectively. BSE advance-decline ratio stood at 1.1:1.

 

FIIs net bought stocks worth Rs 1176 cr (which included around Rs 800 cr on account of Max Health and Amber deal) but net sold index futures and stock futures worth Rs 467 cr and 238 cr respectively. DIIs were net sellers to the tune of Rs 724 cr.

 

Rupee depreciated 8 paise to end at 73.53/$.

 

For the week, Sensex and Nifty gained 1.3% and 1.2% respectively.

 

India's Index of Industrial Production contracted 10.4% in July as against contraction of 15.7% in June and marking the fifth consecutive month of degrowth.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.4%-0.7% and SGX Nifty is suggesting around 25 points higher start for our market.

 

In Friday's report we had said that 11490, the 50% retracement level of the recent 11794-11185 fall, is the immediate hurdle to eye on the way up.

 

Nifty, after touching a high of 11493, eased to end at 11464 and is set to open near Friday’s high today.

 

11493, the top made on Friday, is the immediate hurdle to eye, upon crossover of which, 11593, the 67% retracement level of recent 11794-11185 fall, would be the next target.

 

11350 is the immediate support on the hourly chart.

 

Monsoon session of the Parliament starts today. Total 45 bills will be taken up for discussion and key among them are IBC Amendment Bill and Banking Regulation Bill.