20250-20300 IS THE TARGET AREA; 19900-19850 IS THE SUPPORT ZONE

 

20250-20300 IS THE TARGET AREA; 19900-19850 IS THE SUPPORT ZONE

 

WORLD MARKETS

 

U.S. indices gained 0.8%-1%, cheering revival of Wall Street’s IPO market and a decent batch of economic data. Dow notched it's best day since Aug. 7.

 

Arm shares surged 24.7% after the chip design company started trading.

 

August’s producer price index showed core PPI increased 0.2%, in line with estimate. However, the headline number rose 0.7%, more than the expected 0.4% increase. August retail sales jumped 0.6% last month against a 0.1% increase expected. Excluding autos, retail sales rose 0.6%, more than the forecasted 0.4% increase. Weekly initial jobless claims rose to 220,000 but were below the 225,000 forecast.

 

European Central Bank hiked rates by an expected quarter percentage point but noted inflation is easing and hinted it could be near the end of its rate-hiking campaign.

 

U.S. 10-year treasury yield rose 4 bps to 4.292%. Dollar index rose 0.6% to 105.34, it's highest level in six months. Gold inched up 0.1% to $1911 per ounce.

 

WTI crude jumped 1.9% to $90.16 and Brent crude settled up 2% at $93.70.

 

European markets gained 1%-2%.

 

AT HOME

 

After gaining half a percent in the initial trade, benchmark indices cooled off to end marginally in the green. Sensex settled at 67519, up 52 points while Nifty added 33 points to finish at 20103 to hit record intraday and closing high. Nifty mid-cap and small-cap indices gained 1.2% and 1.3% respectively. Nifty PSU Bank and Metal indices were the top gainers among the sectoral indices, up 1.6% and 1.5% respectively while Media index was the top loser, down 0.4%, followed by 0.2% lower Consumer Durables and FMCG indices.

 

FIIs net bought stocks worth Rs 295 cr but net sold index futures and stock futures worth Rs 185 cr and 749 cr respectively. DIIs were net sellers to the tune of Rs 51 cr.

 

Rupee depreciated 4 paise to end at 83.03/$.

 

India's August WPI inflation came in at negative 0.52% as against negative 1.36% in July, marking fifth straight month of negative reading. Core WPI was unchanged at negative 2.2%.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.1%-1% and GIFT Nifty is suggesting around 70 points higher start for our market.

 

In yesterday's report we had said that 20250-20300 was the next target area and had advised trailing stop-loss in longs to 19850.

 

Nifty, after touching a high of 20167, eased to end at 20103.

 

20250-20300, around which, a rising trendline adjoining tops made in December 2022 and July 2023 is placed, continues to be next target area; 19900-19850 is the immediate support area, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 46370, the record high made on 21st July, continues to be next upside level to eye, upon crossover of which, 47000, around which a trendline adjoining tops made in December 2022 and July 2023 is placed, would be next upside target; On the way down, 45300-45250 is the immediate support area.

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