ASIA STARTS THE WEEK ON A WEAK NOTE; 8035 IMMEDIATE SUPPORT FOR NIFTY

ASIA STARTS THE WEEK ON A WEAK NOTE; 8035 IMMEDIATE SUPPORT FOR NIFTY

WORLD MARKETS

US indices ended mixed on Friday with the Dow finishing at a record as investors welcomed Alibaba's market debut and Scotland's vote to remain in the U.K.

55% of Scottish voters supported sticking with the nation's 307-year union with the U.K. after Prime Minister David Cameron vowed to give additional policy-making powers to Scotland.

Alibaba surged in in the Chinese online retailer's U.S. trading debut after the company raised nearly $22 billion in an initial public offering, the largest IPO ever.

Back in the US, the Conference Board's index of leading indicators rose 0.2% in August versus expectations for a 0.4% gain.

European markets too ended mixed. German producer prices for August showed a decline of 0.1% from the month before, with a yearly drop of 0.8%.

Gold fell 0.8% to $1216.6 an ounce and Nymex crude declined 66 cents to $92.4 a barrel.

For the week, Dow gained 1.7%, S & P rose 1.3% and Nasdaq was up 0.3%

Over the weekend, finance ministers and central bank chiefs from the Group of 20 met in the Australia and said they were close to adding an extra $2 trillion to the global economy and creating millions of new jobs, but Europe's extended slowdown remains a major stumbling block.

                                                             

AT HOME

After yesterday's mammoth upmove, today was a day of consolidation as benchmark indices ended little changed after a choppy trading session. Sensex lost 22 points to settle at 27090 while Nifty finished at 8121, up 7 points. BSE mid-cap and small-cap indices gained 0.04% and 0.6% respectively. BSE IT and Teck indices gained the most among the sectoral indices, rising 1.4% and 1.1% respectively while Capital Goods and Oil & Gas indices were the top losers, down 1.9% and 1.2% respectively.

FIIs net sold stocks and index futures worth Rs 7 cr and 43 cr respectively but net bought stock futures worth Rs 96 cr. DIIs were net buyers to the tune of

Rs 237 cr.

Rupee appreciated 2 paise to close at 60.81/$.

For the week, Nifty and Sensex gained 0.2% and 0.1% respectively, extending the winning streak to sixth straight week.

OUTLOOK

Today morning Asian markets are trading with cuts ranging from 0.5%-1% and SGX Nifty is suggesting about 50 points lower opening for our market.

In Friday's report we had mentioned that by taking out the 8060 hurdle, Nifty had generated a fresh buy on the hourly chart and that 8180 would be the immediate target to eye.

Nifty touched a high of 8161 on Friday, coming very close to the 8180 target mentioned above from where profit booking took the benchmark lower to 8121.

The benchmark is set to open with a downward gap today. Immediate support on the hourly chart is placed at 8035, a breach of which would confirm a sell on the hourly chart and would pave the way for the retest of the 7925 bottom.

Traders are advised to keep a stop loss of 8035 in trading longs.