STAY LONG WITH THE STOP-LOSS OF 17660

 

STAY LONG WITH THE STOP-LOSS OF 17660

 

WORLD MARKETS

 

US indices gained 0.9%-1.2%, rebounding from previous day's tech led sell-off.

 

ISM services PMI for September rose to 61.9 from 61.7 in August, 0.2 points better than expected.

 

US 10-year treasury yield rose 5 bps to 1.531%. Spot gold fell 0.6% to $1,758.27 per ounce. Dollar index rose 0.13% to 93.957.

 

Brent crude settled 1.6% higher at $82.56 per barrel to hit its highest in three years. WTI rose $1.31, or 1.7% to $78.93 per barrel to reach its best level after 2014.

 

European markets rose 0.9%-2%. Eurozone final IHS Markit composite PMI came in at 56.2 last month, compared to 59.0 in August. French industrial output climbed 1% m-o-m in August, outstripping forecast of 0.3%, and accelerating from the 0.5% growth seen in July. Italy's GDP grew by 17.2% y-o-y in second quarter, fractionally below the 17.3% previously reported.

 

AT HOME

 

After a negative start, benchmark indices saw a sustained northward move through the session to end higher by three fourth of a percent, extending the winning streak to second straight day. Sensex settled at 59745, up 445 points while Nifty added 131 points to finish at 17822. Nifty mid-cap and small-cap indices gained 0.4% each, rising for the fifth straight day and hitting fresh record highs. BSE Oil & Gas and Energy indices soared 3.2% and 2.5% respectively, becoming the top gainers among the sectoral indices while Realty and Healthcare indices were the top losers, down 1.6% and 0.4% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 1915 cr, 580 cr and 699 cr respectively. DIIs were net buyers to the tune of Rs 1868 cr.

 

Rupee depreciated 13 paise to end at 74.44/$.

 

Rating Agency Moody's raised the outlook on India's sovereign rating to 'stable' from 'negative' in a revision after nearly two years.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are down nearly a percent and SGX Nifty is suggesting around 30 points lower start for our market.

 

In yesterday's report we had said that 17452, the low made last week, was the immediate support to eye while 17782 continued to be immediate hurdle.

 

Nifty surged to cross 17782 hurdle and touched a high of 17833 before closing at 17822.

 

17947, the top made last week, is the next upside level to eye.

 

17660 is the immediate support, with the stop-loss of which, trading longs can be held on to.

 

37900 is immediate hurdle for Banknifty, above which, 38377 would be next upside target; 37300 is immediate support.