NIFTY RESISTED AT 20-DMA

 

NIFTY RESISTED AT 20-DMA

 

WORLD MARKETS

 

U.S. indices gained 0.1%-0.5%, extending the winning streak to fourth straight day, as a fresh batch of weak economic readings reinforced the view that the Fed may have to hit pause on its interest rate hikes.

 

Data from ADP showed private payrolls rose by 177,000 jobs last month, lower than the expected 195000 mark and sharply below the revised July reading of 371,000. Second-quarter GDP growth was revised downward to a 2.1%.

 

U.S. 10-year treasury yield was little changed at 4.118%. Dollar index fell 0.3% to 103.17. Gold rose 0.3% to $1942 per ounce.

 

Brent crude futures for October rose 37 cents to settle at $85.86 a barrel. WTI crude futures gained 47 cents to $81.63.

 

In Europe, FTSE inched up 0.1% but DAX and CAC fell 0.2% and 0.1% respectively. Germany reported a 13.2% y-o-y drop in imports in July, the sharpest drop since January 1987.

 

AT HOME

 

After rising more than half a percent, benchmark indices gave away all the gains in noon plunge to end flat. Sensex settled at 65087, up 11 points while Nifty added 5 points to finish at 19347. Nifty mid-cap and small-cap indices surged 0.7% and 1% respectively, hitting fresh record highs. Nifty Realty and Metal indices climbed 1.4% and 0.9% respectively, becoming top gainers among the sectoral indices while Bank and Financial Services indices were the top losers, down 0.6% and 0.5% respectively.

 

FIIs net sold stocks and index futures worth Rs 495 cr and 13 cr respectively but net bought stock futures worth Rs 1930 cr. DIIs were net buyers to the tune of Rs 1323 cr.

 

Rupee depreciated 2 paise to end at 82.75/$.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are up nearly half a percent while Shanghai is off 0.3%. GIFT Nifty is suggesting around 30 points higher start for our market.

 

In yesterday's report we had said that 19400 was the immediate hurdle on the hourly chart, upon sustained trading above which, 19584, the top made last week, would be next upside target/resistance to eye.

 

Nifty, after touching a high of 19452, slipped to end at 19347.

 

19452, the top made yesterday, roughly coincided with 20-DMA and is the immediate hurdle to eye, upon crossover of which, 19584, the top made last week, would be next upside target/resistance to eye; 19230, the low made last week, continues to be immediate support.

 

For Banknifty, 44950, the top made last week, continues to be immediate hurdle; A trendline adjoining recent bottoms lands support around 44000, below which, 43600, the low made in mid-August, would be next downside level to eye.

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