BROADER MARKET OUTPERFORMS WHILE NIFTY CORRECTS; 8100-8060 CONTINUES TO BE IMMEDIATE SUPPORT ZONE

BROADER MARKET OUTPERFORMS WHILE NIFTY CORRECTS; 8100-8060 CONTINUES TO BE IMMEDIATE SUPPORT ZONE

WORLD MARKETS

US indices, after dipping into red in the initial trade, saw a sustained northward move through the session to end with gains ranging from 0.3%-0.8%, with social media shares boosting the technology sector.

Apple rose 3.1%, halting a two-session drop. Twitter rallied after UBS advised buying its shares; Facebook and LinkedIn also rose after UBS also raised its price targets on the social-media companies.

Nymex crude fell 1.1% to $91.7 a barrel, touching a 16-month low on lower OPEC demand forecasts and a jump in U.S. refined product stocks. Brent lost $1.1 to $98.04. Gold lost 0.3% to $1245 an ounce.

European markets ended flat to modestly lower. French industrial production numbers for July posted a monthly rise of 0.2%, beating expectations.

                                                             

AT HOME

It was a day of weakness as benchmark indices, after a lower start, slipped further through the session to end with cuts of about three fourth of a percent, marking the largest fall in a month. Sensex tumbled 208 points to settle at 27057 while Nifty finished at 8094, down 59 points. BSE mid-cap and small-cap indices however gained 0.1% and 0.6% respectively. Except a 0.6% and 0.1% rise in BSE Realty and Power indices, all other sectoral indices ended in red with Consumer Durable and Oil & Gas indices leading the tally, giving away 1.6% and 1.5% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 10 cr, 828  cr and 759 cr respectively. DIIs were net sellers to the tune of Rs 511 cr.

Rupee fell 34 paise to close at 60.94/$, hitting one month low.

OUTLOOK

Today morning Asian markets are trading mixed with modest changes and SGX Nifty is suggesting a flattish start for our market.

In yesterday's report we had mentioned that 8100-8060 is the important near term support zone, a breach of which would generate a sell on the hourly chart after many days and would set the stage for the further correction. Nifty, after touching a low of 8082, closed at 8094.

Having breached the 8100 mark yesterday, it remains to be seen whether Nifty rebounds or breaks the 8100-8060 support area decisively. Trading longs should be liquidated if 8060 is breached.

India's trade data for August would be released today.