NIFTY ACHIEVES 9950 TARGET; 10070 IS THE IMMEDIATE HURDLE

NIFTY ACHIEVES 9950 TARGET; 10070 IS THE IMMEDIATE HURDLE

WORLD MARKETS                             

Dow ended marginally in the red while S & P 500 and Nasdaq gained 0.1% each.

Dollar index fell 0.14%. The yield on the 10-year Treasury note fell slightly to 2.259%.

European markets, except a 0.1% lower DAX, gained upto 0.6%. FTSE jumped, tracking a fall in Sterling following a speech from Prime Minister May which gave little detail on how she wants a Brexit transition period to work.

French second-quarter gross domestic product rose 0.5% from the previous quarter, on higher consumer spending. French flash PMIs showed that both services and manufacturing activities increased in August to their highest level since May 2011.

For the week, Dow and S & P 500 gained 0.4% and 0.1% respectively but Nasdaq fell 0.3%. In Europe, FTSE and CAC gained 1.3% each while DAX added 0.6%. In Asia, Nikkei soared 19%, Hang Seng and Shanghai rose 0.3% and 0.2% respectively but India fell 1.2%.

Moody's downgraded Britain's sovereign credit rating over the weekend to Aa2 from Aa1.

Trump tweeted on Saturday attacking North Korea's Foreign Minister Ri Yong-ho's comment about him during the United Nations General Assembly Meet. Soon after this, North Korea held a large anti-US rally in Pyongyang, supporting their leader Kim Jong-un.

AT HOME

Sensex and Nifty nosedived 1.4% and 1.6% respectively, registering the biggest single day fall since 21st November, 2016. Sensex slumped 448 points to settle at 31992 while Nifty finished at 9964, down 158 points. BSE mid-cap and small-cap indices tumbled 2.7% and 2.9% respectively. All the BSE sectoral indices ended in red with Realty and Metal indices leading the tally, down 4.3% and 4% respectively.

FIIs net sold stock and index futures worth Rs 1242 cr and 126 cr respectively but net bought index futures worth Rs 1688 cr. DIIs were net buyers to the tune of Rs 521 cr.

Rupee appreciated 2 paise to end at 64.79/$.

For the week, Sensex and Nifty lost 0.9% and 1.2% respectively.

The central government has extended the validity of interest subsidy benefit of about Rs.2.60 lakh on home loans under Pradhan Mantri Awas Yojana (Urban) for beneficiaries belonging to Middle Income Groups (MIG) by 15 more months beyond earlier stipulated one year period ending December this year.

OUTLOOK

Today morning, except a half a percent higher Nikkei, other Asian markets are trading with cuts of 0.2%-0.9% and SGX Nifty is suggesting a flattish start for our market.

In Friday's report we had reiterated the view that 10040 was the immediate support and if that is taken out, Nifty can slip to around 9950, where 34-DMA was placed.

Nifty, on Friday, broke 10040 support in the first hour itself and plunged all the way to 9953, achieving the 9950 target and vindicating our view.

9950 continues to be important immediate support, upon breach of which 9874, the 61.8% retracement level of the 9685-10180 upmove, would be the next immediate support. Below 9875, the possibility of retesting of 9685 would open up.

Immediate resistance on the hourly chart is placed around 10070 above which 10180, the top made last week, would be the bigger hurdle to eye.

Traders are advised to wait for the crossover of 10070-9950 levels on either side for taking a fresh view on Nifty.

NIFTY REBOUNDS FROM THE VICINITY OF 10040 SUPPORT

NIFTY REBOUNDS FROM THE VICINITY OF 10040 SUPPORT

WORLD MARKETS                             

US indices fell 0.2%-0.5% with the Dow breaking a nine-day winning streak, digesting the prospects of interest rate hike in December. Financial stocks however rose as higher interest rates generally correlate with increased profits for the sector.

The yield of the benchmark 10-year U.S. Treasury note stood at 2.2782%. Dollar index, after touching a high of 62.66, slipped to end at 62.19, the previous close being 92.45.

Trump signed a new measure that expanded Treasury Department's authority to target people and institutions conducting business with North Korea. In turn, North Korean leader Kim Jong Un has said that Trump would "pay dearly" for his speech at the United Nations earlier this week.

European markets, except a 0.1% lower FTSE, gained 0.2%-0.6%.

Earlier, S&P downgraded China's sovereign credit rating to A+ from AA-, citing country's credit growth as a risk. The downgrade from S&P put its rating in line with Moody's and Fitch.

AT HOME

After plunging about eight tenth of a percent in first hour, benchmark indices recouped most of the losses through rest of the session to end modestly lower. Sensex settled at 32370, down 30 points while Nifty lost 19 points to finish at 10122. BSE mid-cap and small-cap indices fell 0.3% and 0.5% respectively. BSE Realty and Consumer Durable indices tumbled 2.3% and 1.4% respectively, becoming top losers among the sectoral indices while Healthcare index jumped 2.7%, becoming top gainer, followed by 0.2% higher IT index.

FIIs net sold stocks, index futures and stock futures worth Rs 1205 cr, 376 cr and 103 cr respectively. DIIs were net buyers to the tune of Rs 1417 cr.

Rupee plunged 54 paise to end at 64.81/$, marking a near three month low.

Finance Minister Arun Jaitley yesterday said the government would take all the necessary steps to boost the Indian economy and measures are being mulled to strengthen bank balance sheets by recapitalizing public sector undertaking (PSU) banks.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.3%-0.8% and SGX Nifty is suggesting about 50 points lower start for our market.

In yesterday's report we had reiterated the view that 10040, the bottom made last Friday, continues to be immediate support, with the stop-loss of which trading longs should be held on to.

Yesterday, Nifty, after touching a low of 10058, rebounded smartly to end at 10122, holding on to 10040 support and vindicating our view.

10040 continues to be immediate support upon breach of which 34-DMA, placed around 9950, would be the next major support.

On the way up, 10180, the top made on Tuesday, is the immediate hurdle, above which 10220 would be the next target.

Traders are advised to maintain the stop-loss of 10040 in long positions.

DOLLAR, US TREASURY YIELD RISE ON HAWKISH FED STATEMENT; 10040 CONTINUES TO BE IMMEDIATE SUPPORT FOR NIFTY

DOLLAR, US TREASURY YIELD RISE ON HAWKISH FED STATEMENT; 10040 CONTINUES TO BE IMMEDIATE SUPPORT FOR NIFTY

WORLD MARKETS                             

While Dow and S & P 500 gained 0.2% and 0.1% respectively, Nasdaq fell 0.1%, digesting the outcome of Fed meeting.

Fed said it would start winding down its $4.5 trillion balance sheet in October and indicated that one additional rate hike was probable this year.

Treasury yields rose with the 10-year note hitting a high of 2.29%, its highest level since Aug. 8. The two-year note yielded as high as 1.451%, touching its highest levels since 2008. Dollar index rose 0.7% to 92.45.

Main European markets ended little changed but Italy and Spain fell 0.3% and 0.8% respectively. UK retail sales surged 1% last month, beating forecasts.

AT HOME

It was yet another day of consolidation as benchmark indices ended little changed after trading in a narrow range. Sensex settled at 32400, down 2 points while Nifty lost 6 points to finish at 10141. BSE mid-cap and small-cap indices fell 0.1% each. BSE Telecom and Auto indices fell 0.8% and 0.7% respectively, becoming top losers among the sectoral indices while Capital Goods and Healthcare indices were the top gainers, putting on 0.5% and 0.2% respectively.

FIIs net sold stocks and index futures worth Rs 1185 cr and 469 cr respectively but net bought stock futures worth Rs 129 cr. DIIs were net buyers to the tune of Rs 946 cr.

Rupee appreciated 6 paise to end at 64.27/$

OUTLOOK

Today morning, Nikkei is up 0.7% but other Asian markets are trading with modest cuts and SGX Nifty is suggesting about 20 points lower start for our market.

10040, the low made last Friday, continues to be immediate support below which 34 DMA, which also coincides with the upward sloping trendline adjoining recent bottoms, placed around 9950, would be the crucial support to eye.

10220 continues to be immediate upside target.

Traders are advised to hold long positions with the stop-loss of 10040.

STAY LONG WITH THE STOP-LOSS OF 10040

STAY LONG WITH THE STOP-LOSS OF 10040

WORLD MARKETS                             

US indices gained 0.1%-0.2% and dollar slipped as the U.S. Federal Reserve began its two-day meeting.

In his address to United Nations, Trump said the U.S. would have to "totally destroy" North Korea if forced.

U.S. import prices posted their biggest gain in seven months in August amid a spike in petroleum costs.

Treasury yields rose slightly, with the benchmark 10-year yield at 2.24% and the two-year yield at 1.401%.

Brent crude settled 34 cents lower at $55.14 a barrel and U.S. crude lost 43 cents to settle at $49.48.

European markets gained upto 0.4%.

AT HOME

Benchmark indices ended marginally in the red after trading in a narrow range through the session. Sensex settled at 32402, down 21 points while Nifty finished at 10148, down 6 points. BSE mid-cap and small-cap indices gained 0.1% and 0.4% respectively. BSE Oil & Gas and Utilities indices climbed 1.2% each, becoming top gainers among the sectoral indices while Metal and Capital goods indices were the top losers, down 0.6% and 0.4% respectively.

FIIs net sold stocks and index futures worth Rs 1720 cr and 1029 cr respectively but net bought stock futures worth Rs 9 cr. DIIs were net sellers to the tune of Rs 78 cr.

Rupee depreciated 20 paise to end at 64.33/$, a near two-month low.

TRAI yesterday cut termination charge for all mobile to mobile calls to 6 paise per minute from 14 paise. The revised charge, effective October 1, will be reduced to zero from January 1, 2020. For calls between landlines, between mobiles and landlines and vice versa, this charge will continue to be nil,

OUTLOOK

Today morning, except a modestly higher Hang Seng, other Asian markets are trading flat to modestly lower and SGX Nifty is suggesting about 15 points lower start for our market.

After Nifty achieved the 10138 target, we are working with next immediate target of 10220. Yesterday, Nifty, after touching a high of 10180, slipped to end at 10148 and is set to open modestly lower today.

10040, the bottom made on Friday, continues to be immediate support,  below which trendline adjoining recent bottoms on daily chart, placed around 9950, would be the next important support to eye.

Traders are advised to hold long positions with the stop-loss of 10040.

The Fed is expected to keep interest rates steady when it announces its rates decision today but is expected to announce the unwinding of its $4.5 trillion portfolio. Markets will also look for cues to December rate hike.

NIFTY TAKES OUT 10138 HURDLE; STAY LONG WITH THE STOP-LOSS OF 10040

NIFTY TAKES OUT 10138 HURDLE; STAY LONG WITH THE STOP-LOSS OF 10040

WORLD MARKETS                             

US indices gained 0.1%-0.3% with the Dow and S & P 500 hitting a fresh record intraday and closing high ahead of the beginning of two-day Fed meeting.

The benchmark 10-year yield rose to 2.23% and two-year yield, which is more sensitive to changes in monetary policy, traded at 1.397%.

Shares of Orbital ATK rose about 20% after announcing it is being bought by defense giant Northrop Grumman.

European markets climbed 0.3%-0.6%. Portugal's PSI 20 index surged 1.5% after rating agency Standard & Poor's upgraded Portugal to investment grade status on Friday.

AT HOME

Sensex and Nifty climbed 0.5% and 0.7% today with Nifty scaling a fresh intraday as well closing all-time-high. Sensex added 151 points to settle at 32424 while Nifty finished at 10153, up 68 points. BSE mid-cap and small-cap indices gained 0.7% and 0.9% respectively. Except a 0.1% lower Oil & Gas index, all the BSE sectoral indices ended in green with Telecom and Capital Goods indices leading the tally, up 1.9% and 1.5% respectively.

FIIs net sold stocks and index futures worth Rs 97 cr and 198 cr respectively but net bought stock futures worth Rs 84 cr. DIIs were net buyers to the tune of Rs 776 cr.

Rupee depreciated 6 paise to end at 64.13/$.

SEBI yesterday amended norms governing real estate investments trusts (REITs) and infrastructure investment trusts (InvITs), allowing them to raise funds through debt securities and also permitting single-asset REITs in a bid to boost the financial instruments.

OUTLOOK

Today morning, Nikkei, which was shut yesterday, is trading with gains of more than a percent while other Asian markets are trading with modest gains. SGX Nifty is suggesting a flattish start for our market. Nifty yesterday climbed 68 points to end at 10153, taking out the 10138 top made on 2nd August. Next immediate target on the way up is around 10225 above which 10600 would be next major target to eye.

10040, the bottom made Friday is the immediate support below which 20-DMA, placed around 9950, would be the next important support to eye.

Traders are advised to hold on to long positions with the stop-loss of 10040.

Prime Minister Narendra Modi will interact with Finance Minister Arun Jaitley and other top officials today to take stock of the situation and discuss remedial measures to bolster growth.

US President Donald Trump addresses world leaders at the United Nations.

10138-9930 IS THE IMMEDIATE RANGE

10138-9930 IS THE IMMEDIATE RANGE

WORLD MARKETS                             

US indices gained 0.2%-0.3% on Friday with the S & P 500 breaking above the 2500 mark for the first time.

Retail sales for August fell 0.2% as against expectation of a rise of 0.1%. Industrial production fell 0.9% month-on-month.

Pound surged nearly 1.5% to trade above the $1.36 mark after Bank of England policymaker Gertjan Vlieghe said data "increasingly" suggested that it would be timely to raise interest rates in the "coming months."

In Europe, FTSE plunged 1.1% while other markets fell 0.2%-0.4%. Wages in the euro zone grew at 2% y-o-y, their fastest pace in two years. FTSE was dragged down by soaring pound and an explosion at a tube train in London.

For the week US indices gained 1.4%-2.2% with the Dow notching its biggest weekly gain since the week of December 9.  In Europe, FTSE plunged 2.2% but DAX and CAC gained 1.8% and 2% respectively. In Asia Nikkei soared 3.3%, Hang Seng rose 0.5% but Shanghai fell 0.4%.

US President Trump referred to North Korean leader Kim Jong Un as "Rocket Man" in a tweet on Sunday after agreeing with South Korean President Moon Jae-in about putting more pressure on the North in a phone call.

AT HOME

Benchmark indices ended little changed after a roller coaster session. Sensex settled at 32273, up 31 points while Nifty lost 1 point to finish at 10085. BSE mid-cap index lost 0.3% while small-cap index gained 0.4%. BSE IT and Teck indices gained 1% and 0.8% respectively, becoming top gainers among the sectoral indices while Power and Telecom indices were the top losers, down 0.9% and 0.6% respectively.

FIIs net bought stocks and index futures worth Rs 419 cr and 134 cr respectively but net sold stock futures worth Rs 1123 cr. DIIs were net buyers to the tune of Rs 126 cr.

Rupee appreciated 5 paise to end at 64.08/$.

For the week, Sensex and Nifty gained 1.8% and 1.5% respectively with Nifty registering highest ever weekly close.

India's current account deficit, at $14.3 bn, hit a four-year high of 2.4% of GDP in first quarter of the current fiscal. Last year same quarter, deficit stood at 0.1% of GDP. India's trade deficit in August widened to USD 11.64 bn from USD 7.7 bn in same month a year ago. Exports rose 10.29% to USD 23.81 bn and imports surged 21% to USD 35.46 bn.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.3%-1% and SGX Nifty is suggesting about 40 points higher start for our market.

As we have been mentioning for some time, 10138, the top made on 2nd August, is the important hurdle, a crossover of which is required for a fresh upmove. Nifty was resisted near this level couple of times last week and finally closed the week at 10085.

A higher opening today would again take it close to this hurdle. Only if this hurdle is decisively taken out, upside till about 10600 would open up.

The trendline adjoining bottoms made in August, which also coincides with 20-DMA, has now moved up to 9930 and is the important immediate support to eye.

This makes 10138-9930 immediate range, a crossover of which, on either side, is required for taking a fresh directional view.

NIFTY AGAIN RESISTED NEAR 10138; 9925 IS THE IMPORTANT SUPPORT

NIFTY AGAIN RESISTED NEAR 10138; 9925 IS THE IMPORTANT SUPPORT

WORLD MARKETS                             

Dow gained 0.2% but S & P 500 and Nasdaq fell 0.1% and 0.5% respectively as strong inflation data raised the possibility of tighter monetary policy.

The Consumer Price Index rose 1.9% y-o-y in August, a touch above the 1.8% increased forecast.

The benchmark 10-year yield rose to 2.22% before trading at 2.197%. Dollar index, after touching a high of 62.66, slipped to end at 92.13.

Brent crude rose 0.6% to $55.47 a barrel, its highest level in around five months. WTI crude added 1.2% to settle at $49.89.

In Europe, FTSE nosedived 1.1% while other markets ended mixed with modest changes. FTSE was dragged down by a fall in U.K. miners and an uptick in Sterling, which rose on the Bank of England's suggestion that an interest rate hike could emerge in the "coming months."

AT HOME

Benchmark indices ended marginally higher after a choppy session. Sensex added 55 points to settle at 32242 while Nifty finished at 10087, up 7 points. BSE mid-cap and small-cap indices climbed 0.6% each. BSE Healthcare index soared 2.1%, becoming top gainer among the sectoral indices, followed by 0.9% higher Industrial index. Metal and Realty indices lost 0.7% and 0.5% respectively, becoming top losers.

FIIs net sold stocks and index futures worth Rs 1334 cr and 484 cr respectively but net bought stock futures worth Rs 58 cr. DIIs were net buyers to the tune of Rs 793 cr.

Rupee depreciated 14 paise to end at 64.13/$.

WPI inflation touched a four-month high of 3.24% in August, up from 1.88% in July.

OUTLOOK

North Korea launched a missile which flew over Japan before landing in the sea. The hermit state had warned through a state agency on Thursday that it would "sink" Japan and turn US to ashes and darkness.

Except a 0.1% higher Nikkei, other Asian markets are trading with cuts of upto 0.7% and SGX Nifty is suggesting about 60 points lower start for our market.

Readers would recall that for past two days we have been saying that traders should book some profit in long positions and wait for the decisive crossover of 10138, the highest high made in early August, for taking a fresh positive view.

Nifty has been facing resistance around this level for past two sessions and is set to open sharply lower today.

We would like to reiterate that a decisive crossover of 10138 is required for a fresh upmove.

On the way down, 20 DMA+rising trendline is now placed around 9925, which makes 9925 an important immediate support to eye. Before that 10000 is the nearest support on the hourly chart.