8060 CONTINUES TO BE IMMEDIATE SUPPORT; IIP, CPI IN FOCUS

8060 CONTINUES TO BE IMMEDIATE SUPPORT; IIP, CPI IN FOCUS

WORLD MARKETS

US indices, after falling about half a percent in the initial trade, recovered through rest of the session to end mixed with modest changes.

Initial claims for state unemployment benefits increased 11,000 to 315,000 for the week ended September 6, the highest level since June.

US President Obama said that the US will join EU in intensifying sanctions on Russia.

Earlier Chinese inflation data showed some indication that the world's second-largest economy was losing steam.

European markets ended with cuts of upto half a percent on concerns regarding U.S. military action and the independence vote in Scotland.

Nymex crude rose $1.2 to $92.8 a barrel while gold fell $6.3 to $1239 an ounce.

                                                             

AT HOME

Benchmark indices ended modestly lower after a choppy trading session, extending the losing streak to third straight day. Sensex lost 62 points to settle at 26996 while Nifty finished at 8086, down 8 points. Broader market however had a different story to tell as BSE mid-cap and small-cap indices climbed 1.1% and 1.5% respectively. BSE Healthcare and Metal indices were the top losers among the sectoral indices, giving away 1.7% and 1.1% respectively while Auto and Capital Goods indices gained 0.7% each.

FIIs net bought stocks and index futures worth Rs 434 cr and 32 cr respectively but net sold stock futures worth Rs 512 cr. DIIs were net sellers to the tune of Rs 531 cr.

Rupee appreciated 2 paise to close at 60.925/$.

OUTLOOK

Today morning Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 15 points lower opening for our market.

In yesterday's reports we had reiterated that 8100-8060 continues to be the support area and trading longs should be liquidated if 8060 is breached. Nifty, after touching a low of 8057 rebounded to close at 8086, holding the 8060 support on closing basis.

8060 continues to be important near term support a sustained trading below which will generate a "sell" on the hourly chart after many days and would set the stage for the further fall.

India's index of industrial production for July will be released today and is likely to see a lower growth of 1.7% as against previous month's 3.4% uptick. CPI for August too will come out and is expected to ease to 7.7% from 7.96% in July.