NIFTY HOLDS 11300 SUPPORT ON CLOSING; 11452-11507 IS THE RESISTANCE ZONE

 

NIFTY HOLDS 11300 SUPPORT ON CLOSING; 11452-11507 IS THE RESISTANCE ZONE

 

WORLD MARKETS

 

US markets were shut yesterday in observation of Labor Day.

 

European markets gained 1.3%-2.4%, monitoring progress on various coronavirus vaccines. The president of Sanofi France said a coronavirus vaccine being developed by Sanofi and Britain’s GlaxoSmithKline will likely cost less than 10 euros ($11.80).

 

Earlier, data showed China’s dollar-denominated exports beat expectations in August to climb 9.5% from a year ago, while imports declined 2.1%.

 

Brent crude fell 45 cents or 1.1% to $42.21 a barrel while WTI crude slipped 51 cents, or 1.3%, to $39.26 a barrel.

 

AT HOME

 

After yo-yoing between positive and negative territory, benchmark indices finally ended higher by a fifth of a percent. Sensex settled at 38417, up 60 points while Nifty added 21 points to finish at 11355. BSE mid-cap and small-cap indices however ended lower by 0.8% and 0.2% respectively. BSE IT index was the top gainer among the sectoral indices, rising 0.8%, followed by 0.7% higher FMCG and Teck indices. Realty and Utilities indices were the top losers, down 0.8% each.

 

FIIs net sold stocks and stock futures worth Rs 7 cr and 50 cr respectively but net bought index futures worth Rs 653 cr. DIIs were net sellers to the tune of Rs 816 cr.

 

Rupee depreciated 20 paise to close at 73.34/$.

 

OUTLOOK

 

Japan’s revised GDP figures for the April-June quarter showed the country’s economy shrinking an annualized 28.1%, worse than preliminary estimates which had shown contraction of 27.8%.

 

Today morning, Asian markets are trading flat with modest gains and SGX Nifty is suggesting around 40 points higher start for our market.

 

In yesterday's report we had said that 11303, the low made Friday, also coincided with the 34-DMA and hence was the important immediate support to eye and that if 11300 breaks, 11111, the bottom made on 14th August, would be the next support.

 

Nifty, after touching a low of 11251, rebounded to end at 11355, holding on to 34-DMA on closing basis. The benchmark is set to open nar 11400 today.

 

11452-11507, the gap created by Friday's gap-down opening, is the immediate resistance zone to eye.

 

11300, where 34-DMA is placed, continues to be important immediate support to eye on closing basis. Below 11300, 11111, the bottom made on 14th August, would be the next support.