NIFTY NEARS 8540 TARGET AFTER BEING RESISTED AT 8800 HURDLE AND BREACH OF 8690 SUPPORT; VINDICATES OUR VIEW

NIFTY NEARS 8540 TARGET AFTER BEING RESISTED AT 8800 HURDLE AND BREACH OF 8690 SUPPORT; VINDICATES OUR VIEW

WORLD MARKETS                             

US indices plunged nearly a percent yesterday on concerns over Deutsche Bank's stability.

Deutsche Bank plunged 9% to $11.19, hitting an all-time intraday low before recovering some losses to end 6.7% lower on news report that about 10 hedge funds had cut their exposure to Deutsche Bank over concerns the German bank would be crippled by a potential $14 billion settlement with the U.S. Department of Justice over alleged mortgage derivatives misspelling.

The third — and final — read on second-quarter US GDP showed the U.S. economy grew at an annualized rate of 1.4%, slightly faster than previously estimated. Weekly jobless claims rose 3,000 to 254,000, slightly less than expected. Pending home sales fell 2.4% in August, marking the third straight monthly decline

European markets, except a 0.3% lower DAX, gained 0.3% to 1%, with FTSE on the top.

AT HOME

After gaining more than half a percent in the opening trade, Sensex and Nifty nosedived more than two and a half percent from the top of the day on escalating tension between India and Pakistan and finally settled lower by 1.6% and 1.8% respectively. This was the largest single day fall both the indices since 24th June. Sensex settled at 27828, down 465 points while Nifty lost 154 points to finish at 8591. BSE mid-cap and small-cap indices collapsed 3.6% and 4% respectively. All the BSE sectoral indices ended in red with Realty and Power indices leading the tally, down 6.3% and 4.1% respectively.

FIIs net bought stocks and index futures worth Rs 3413 cr and 876 cr respectively but net sold stock futures worth Rs 137 cr. DIIs were net buyers to the tune of Rs 1631 cr. FII cash figure however included Rs 3653 cr for ING Group NV's 2.5% stake sell in Kotak Mahindra Bank.

Rupee depreciated 39 paise to end at 66.85/$.

For the September derivative series, Nifty ended absolutely flat.

Director General of Military Operations Lt General Ranbir Singh told media in New Delhi that the Indian Army has conducted surgical strikes crossing the Line of Control (LoC) into Pakistan Occupied Kashmir inflicting significant damage to the terrorist infrastructure across the border The operations took place on Wednesday night and is now over, he added.  

OUTLOOK

China's September Caixin manufacturing PMI has come in at 50.1, up marginally from previous month's 50.

Today morning, except a flattish Shanghai, other Asian markets are trading with cuts of 1%-1.6% and SGX Nifty is suggesting about 40 points lower start for our market.

Readers would recall that for past couple of session we had been telling that 8690 was the important immediate support on the daily chart, a breach of which can take Nifty to 8540, the bottom made towards the end of August. In yesterday's report we had also mentioned that 8800 is the immediate hurdle on the hourly chart a sustained trading above which is required to bring bulls back in the game.

Yesterday, the benchmark, after touching a high of 8800, reversed on reports of "surgical strike", broke 8690 support and plunged all the way to 8558 before closing at 8591, vindicating our view.

A gap down opening today would take Nifty close to 8540 support. 8540 is also where a trendline adjoining major bottoms on daily chart lands a support and a close below 8540 can take Nifty all the way to 8300, which was the top made in June this year.

8750 is the immediate hurdle on the way up, until the crossover of which, near term bias would continue to be negative.

8690-8800 IS THE IMMEDIATE RANGE

8690-8800 IS THE IMMEDIATE RANGE

WORLD MARKETS                             

US indices gained 0.2%-0.6% yesterday as oil prices jumped amid reports that OPEC had reached a deal to cut production.

US oil rallied 5.3% to $47.05 and Brent soared 6% to $48.69 on the back of report that OPEC members had reached an agreement to limit production to a range of 32.5 million to 33.0 million barrels per day, down slightly on Augusts’ output of 33.2 million barrels a day and that OPEC would finalize an output reduction plan at its official meeting on November 30.

Fed Chair Janet Yellen, in a prepared testimony to the House Financial Services Committee, said the central bank does not have a "fixed timetable" for raising rates. She also said that U.S. banks are well capitalized, but remain challenged by weak interest income.

In economic data news, U.S. durable goods orders for August came in unchanged versus an expected decline, but core capital goods orders rose for a third straight month.

European markets added 0.5%-0.8%, buoyed by a rally in Deutsche Bank shares and a strong performance in the basic resources stock sector. Shares of Deutsche Bank rebounded from all-time low levels after CEO John Cryan told a German newspaper that the bank did not need any government assistance or a capital increase.

AT HOME

After a flattish start, benchmark indices saw a sustained northward move through the session with Sensex and Nifty ending with gains of 0.25% and 0.45% respectively and breaking the three-day losing streak. Sensex added 39 points to settle at 8745 while Nifty finished at 8745, up 39 points. BSE mid-cap and small-cap indices soared 0.9% and 1% respectively. Except a 0.5% and 0.3% cut in Energy and IT indices respectively, all the BSE sectorla indices ended in green with Telecom and Metal indices leading the tally, up 2.3% and 1.9% respectively.

FIIs net bought stocks and index futures worth Rs 74 cr and 135 cr respectively but net sold stock futures worth Rs 357 cr. DIIs were net sellers to the tune of Rs 70 cr.

Rupee appreciated 2 paise to end at 66.46/$.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.2%-1.5% with Nikkei on the top and SGX Nifty is suggesting about 40 points higher start for our market.

After Nifty bounced back exactly from the 8690 support on Tuesday, in yesterday's report we had mentioned that 8800 is the immediate resistance, at least a crossover of which is required to bring bulls back in the game.

The benchmark added 39 points yesterday to end at 8745 and a higher opening today would take it closer to the 8800 hurdle mentioned above. A sustained trading above 8800 would generate a buy on the hourly chart and would pave the way for the further upside. 8893, the top made last week, would be the next target if that happens.

Meanwhile, traders would do well to wait for the breach of either 8690 support or 8800 resistance, for taking a fresh view on Nifty.

NIFTY ACHIEVES 8690 TARGET; 8800 IS THE IMMEDIATE HURDLE

NIFTY ACHIEVES 8690 TARGET; 8800 IS THE IMMEDIATE HURDLE

WORLD MARKETS                             

US indices gained 0.6%-0.9% yesterday, despite a sharp fall in oil prices, on the back of the first presidential debate and a beat on consumer confidence.

Democratic candidate Hillary Clinton was seen as having an upper edge over her opponent Republican hopeful Donald Trump at the first U.S. presidential debate.

U.S. Consumer Confidence Index hit 104.1 in September, notably higher than the 99.0 print expected. The read was also the highest since the recession. The S&P CoreLogic Case-Shiller 20-City Composite index rose 5% y-o-y, slightly below the expected 5.1% increase. The September Markit Flash U.S. Services PMI showed expansion.

US crude fell 2.7% to $44.67 a barrel while Brent lost 3% to $45.97 as hopes for an output-limiting deal during an oil producer meeting in Algeria faded. 

Gold fell $14 to $1330 per ounce.

European markets fell 0.2%-0.4%.  Deutsche Bank shares hit a fresh all-time, weighing on European equities. Volkswagen shares fell on reports that the U.S. Department of Justice was calculating what criminal fine it could levy on the carmaker.

AT HOME

After gaining about half a percent in the initial trade, benchmark indices tumbled about seven tenth of a percent from the top of the day to end lower by a fifth of a percent, extending the losing streak to third straight day. Sensex settled at 28224, down 71 points and Nifty lost 17 points to finish at 8706. BSE mid-cap and small-cap indices however managed to end 0.1% higher. BSE Telecom and Capital Goods indices were the top losers among the sectoral indices, down 1.5% and 1.1% respectively while IT and Healthcare were the top gainers, up 0.7% and 0.6% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 155 cr, 356 cr and 17 cr respectively. DIIs were net buyers to the tune of Rs 91 cr.

Rupee appreciated 12 paise to end at 66.48/$.

OUTLOOK

Today morning Nikkei is down more than a percent and half as the yen has strengthened to around 100.20 against the dollar. Other Asian markets are trading with cuts of upto half a percent and SGX Nifty is suggesting a marginally lower start for our market.

Readers would recall that after Nifty broke the immediate support of 8790 on Monday, we had been working with the downside target of 8690, which was the bottom made in mid-September.

The benchmark touched exactly that level yesterday before closing at 8706, achieving the target mentioned above and vindicating our view.

8690 is the important support to eye, a close below which would confirm a lower-top lower-bottom formation on the daily chart. 8540, the bottom made towards the End of August, would be the next support to eye if that happens.

Immediate resistance on the hourly chart has moved to 8800, at least a crossover of which is required to bring bulls back in the game.

Traders would do well to wait for the breach of 8690 for taking a fresh bearish view.

NIFTY NEARS 8690 TARGET AFTER BREACHING 8790 SUPPORT; 8810 IS THE IMMEDIATE HURDLE

NIFTY NEARS 8690 TARGET AFTER BREACHING 8790 SUPPORT; 8810 IS THE IMMEDIATE HURDLE

WORLD MARKETS                             

US indices fell 0.9% each yesterday, keeping an eye on an informal OPEC meeting in Algeria and looked ahead to the first U.S. presidential debate. Financials and health care lead the losses.

US crude rose 3.3% to $45.93 a barrel and Brent added 3.2% to $47.35  after media reports cited the Algerian energy minister saying all options were possible for an output cut or freeze and that OPEC oil ministers will "not come out empty-handed" from the meeting.

European markets saw cuts of 1.3%-2.2%. Shares of Deutsche Bank plunged 7.5% to hit an all-time low after German Chancellor Angela Merkel had reportedly ruled out helping the bank with its U.S. legal troubles. 

Back in the US First televised debate between the two presidential candidates Hillary Clinton and Donald Trump is scheduled for 6.30 am IST.

AT HOME

After a modestly lower start, benchmark indices saw a sustained downward move through the session to end with deep cuts of nearly a percent and fourth. Sensex lost 374 points to settle at 28294 while Nifty finished at 8723, down 108 points. BSE mid-cap and small-cap indices lost half a percent each. BSE Realty index cracked 2%, becoming top loser among the sectoral indices, followed by 1.8% cut in Telecom index. Energy index gained 0.4%, followed by 0.1% each rise in Metal and Oil & Gas indices.

FIIs net sold stocks, index futures and stock futures worth Rs 206 cr, 1121 cr and 686 cr respectively. DIIs were net sellers to the tune of Rs 113 cr.

Rupee appreciated 5 paise to end at 66.60/$.

OUTLOOK

Today morning, Nikkei is down about half a percent, Hang Seng is up about half a percent and other Asian markets are trading in between. SGX Nifty is suggesting a flattish start for our market.

In yesterday's report we had mentioned that "8790 continues to be the immediate support, a sustained trading below which would generate a sell on the hourly chart and can take Nifty to 8690".

The benchmark broke 8790 support in the first hour itself and plunged all the way to 8715 before closing at 8723.

8690, the bottom made in the middle of September, continues to be important support to eye, a close below which would confirm a lower-top lower-bottom formation on the hourly chart and would pave the way for further correction. 8540, the bottom made towards the end of August, would be the next downside target to eye if that happens.

8810 is the immediate hurdle on the hourly chart above which 8893, the top made last week, would be the bigger resistance to eye.

Traders can hold short positions with the stop-loss of 8810.

NIFTY SLIPS AFTER FAILING TO CROSS THURSDAY’S TOP; 8790 CONTINUES TO BE IMMEDIATE SUPPORT

NIFTY SLIPS AFTER FAILING TO CROSS THURSDAY’S TOP; 8790 CONTINUES TO BE IMMEDIATE SUPPORT

WORLD MARKETS                             

US indices fell 0.6%-0.7% on Friday to snap a three-day winning streak, with energy stocks leading the losses on the back of sharp fall in oil prices.

US oil tumbled 4% to settle at $44.48 per barrel on reports that Saudi Arabia doesn't see an output deal being reached at Monday's meeting in Algeria.

The September read on the Markit Manufacturing Flash PMI came in at 51.4, below the August read of 52.0.

The U.S. dollar rose slightly against a basket of currencies

European markets saw cuts of upto 1.2%. Euro zone PMI showed that business activity in the 19-country region fell to a near two-year low at 52.6 in September versus 52.9 in August and below market expectations.

For the week, Dow added 0.8% while Nasdaq and S & P 500 rose 1.2% each. European markets soared 3%-3.6%. Asian markets gained 1%-1.5%.

U.S. presidential nominees Hillary Clinton and Donald Trump are set to go head-to-head in their first debate on Monday in the U.S.

AT HOME

After trading in a narrow range for better part of the day, benchmark indices slipped sharply in the late noon trade to end lower by four tenth of a percent, breaking two-day winning streak. Sensex lost 105 points to settle at 28668 while Nifty finished at 8832, down 36 points. BSE mid-cap and small-cap indices however, gained 0.3% and 0.1% respectively. BSE Bankex was the top loser among the sectoral indices, down 1.2%, followed by 0.7% cut in Utillities index. Realty and Energy indices were the top gainer, up 1% and 0.9% respectively.

FIIs net sold stocks and stock futures worth Rs 300 cr and 349 cr but net bought index futures worth Rs 389 cr. DIIs were net buyers to the tune of Rs 496 cr.

Rupee appreciated 1 paise to end at 66.65/$.

For the week, Sensex and Nifty gained 0.2% and 0.6% respectively.   

The Goods and Services Tax Council, in its second day of meeting, has struck political consensus on the GST threshold limit which has been set at Rs 20 lakh. For North-Eastern and other small states, the limit is Rs 10 Lakh. If a trader's turnover is less than the threshold limit per annum, he won't be covered under the indirect tax reform. The financial year ending March 31, 2016 will be the base year for making revenue projection. The Council will meet again on September 30 to finalize draft rules on exemptions. It will meet between October 17-19 to discuss rates.

SEBI board meeting on Friday amended the regulations for infrastructure investment trusts (InvITs) and real estate investment trusts (REITs) to facilitate their growth and allowed foreign portfolio investors (FPIs) to directly trade in debt markets.

OUTLOOK

Today morning Asian markets are trading with cuts of upto a percent and SGX Nifty is suggesting about 35 points lower start for our market.

In Friday's report we had mentioned that "Yesterday, Nifty, after a big gap-up opening at 8873, touched a high of 8893 in the initial trade, but failed to hold at higher level and finally settled at 8867. Usually, the first-hour high on a gap-up day works as the immediate hurdle and therefore one would want to see the crossover of 8893 as a proof of strength".

The benchmark, after touching a high of 8885, slipped to end at 8832 and is set to open lower today.

8790 continues to be the immediate support, a sustained trading below which would generate a sell on the hourly chart and can take Nifty to 8690. On the way up, 8893 continues to be immediate hurdle above which, 8970, the top made in early September, would be the bigger resistance to eye.

Traders are advised to keep stop-loss of 8790 in long positions.

STAY LONG WITH THE STOP-LOSS OF 8790

STAY LONG WITH THE STOP-LOSS OF 8790

WORLD MARKETS                             

US indices gained between 0.5%-0.8% amid rising oil and mixed economic data.

Economic data was mixed. Existing home sales for August fell 0.9%, as against the expectation for an increase of 1.3%. Leading indicators for August fell 0.2%. Weekly jobless claims fell to a two-month low.

US crude rose 2.2% to $46.32 and Brent added 1.8% to settle at $47.65 per barrel, extending the winning streak to third day.

Dollar index, after touching a low of 95.05, recovered to close at 95.37, the previous close being 95.44. Gold gained $13 to $1345 per ounce.

European markets climbed 1.1%-2.3% with the basic resources sector leading the gains as a weaker dollar after the Fed announcement helped the prices of commodities.

AT HOME

Benchmark indices soared 1% with Sensex and Nifty closing at the highest level since 9th September and 8th September respectively. Sensex added 266 points to settle at 28773 while Nifty finished at 8867, up 90 points. BSE mid-cap and small-cap indices climbed 1.4% and 1% respectively. Except a 0.4% and 0.1% cut in IT and Teck indices respectively, all the BSE sectoral indices ended in green with Finance and Oil & Gas indices leading the tally, up 1.6% and 1.5% respectively.

FIIs net bought stocks worth Rs 337 cr but net sold index futures and stock futures worth Rs 299 cr and 127 cr respectively. DIIs were net buyers to the tune of Rs 310 cr.

Rupee appreciated 35 paise to end at 66.66/$.

Aurobindo Pharma surged 6% on the back of announced that it has received the tentative approval for Dolutegravir 50mg from US Food & Drug Administration (USFDA). The drug is used for the treatment of HIV.

The Appointments Committee of the Cabinet yesterday announced the names of Monetary Policy Committee members, who will hold office for a period of four years. This includes Chetan Ghate, Associate professor - Economics & Planning Unit, Indian Statistical Institute; Pami Dua, Professor and Head of department at Delhi School of economics and Ravindra Dholakia, economics professor at IIT, Ahmadabad. The committee will also include the Reserve Bank Governor Urjit Patel and the deputy governor and an executive director. This comes just before the next central bank meet scheduled for October 4.

The first meeting of the newly constituted GST Council Centre and states agreed on a timetable for deciding on the tax rate and completion of legislative work but differences remained on the turnover limit for exemption from the new tax.

OUTLOOK

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

Yesterday, Nifty, after a big gap-up opening at 8873, touched a high of 8893 in the initial trade, but failed to hold at higher level and finally settled at 8867. Usually, the first-hour high on a gap-up day works as the immediate hurdle and therefore one would want to see the crossover of 8893 as a proof of strength. Meanwhile, 8970, the top made in early September, continues to be the upside target to eye.

8790 is now the immediate support on the hourly chart, with the stop-loss of which trading longs can be held on to.

WORLD EQUITIES CHEER BOJ, FED OUTCOME; NIFTY SET TO CHALLENGE 8860 HURDLE

WORLD EQUITIES CHEER BOJ, FED OUTCOME; NIFTY SET TO CHALLENGE 8860 HURDLE

WORLD MARKETS                             

US indices soared 0.9%-1.1% after the Federal Reserve kept interest rates unchanged but hinted at the possibility of one rate hike later this year. The Nasdaq composite hit a fresh all-time intraday high, and closed at a new all-time high.

In its post-meeting statement, Fed expressed confidence in economic growth, but not enough to make a move this month. They also lowered their expectations for rate hikes in the years ahead, suggesting two hikes in 2017 and three each in 2018 and 2019.

Dollar index, after touching a high of 96.33, eased to end at 95.50, the previous close being 96. Gold rose $13 to $1335 an ounce.

US oil climbed nearly 3% to $45.34 after data from the U.S. Energy Information Administration (EIA) showed crude inventories fell 6.2 million barrels in the previous week, compared to expectation of a 3.4 million build. Brent rose 2% to $46.83.

European markets saw gains of upto 0.9%

Earlier, Nikkei soared nearly 2% and yield on the 10-year Japanese government bond rose into positive territory for the first time since March after the Bank of Japan announced it would change policy, abandoning its monetary base target in favor of targeting the yield curve for Japanese bonds. It held the deposit rate unchanged at -0.1% and said it would maintain its program of bond purchases.

AT HOME

After gaining more than half a percent in the morning session, benchmark indices gave away all the gains in the noon trade to end little changed. Sesex settled at 28507, down 16 points while Nifty rose 1 point to finish at 8777. BSE mid-cap index lost 0.1% but the small-cap index added 0.2%. BSE Telecom index was the top gainer among the sectoral indices, rising 1.5%, followed by 0.8% rise in Consumer Durable index. FMCG and Power indices fell 0.6% and 0.2% respectively, becoming top losers.

FIIs net bought stocks and index futures worth Rs 184 cr and 444 cr respectively but net sold stock futures worth Rs 502 cr. DIIs were net sellers to the tune of Rs 231 cr.

Rupee depreciated 1 paise to end at 67.01/$.

India’s current account deficit (CAD) narrowed sharply to just USD 300 million, or 0.1% of GDP, in the June quarter, driven by lower trade deficit on deeper import contraction. CAD had stood at a high of USD 6.1 billion, or 1.2% of GDP, in the year-ago period.

IDFC Bank, DCB Bank and Torrent Power will be included in the derivative segment of NSE from September 30.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.4%-1.4% with Hang Seng on the top and SGX Nifty is suggesting about 50 points higher start for our market.

Yesterday, Nifty, after touching a high of 8827, eased to end at 8777, extending the consolidation within the 8690-8860 range we have been talking for past couple of days.

A gap up opening today would take the benchmark back near the high made yesterday.

8860, the upper level of the gap created by the big gap-down opening last Monday, continues to be immediate hurdle to eye, above which 8970, the top made earlier this month, would be the next big resistance to eye. 8690, the bottom made last week, continues to be important immediate support.

Meanwhile, 8750 is where a double-bottom on the hourly chart is placed and traders can use this level as the stop-loss in long positions once they are initiated if Nifty is able to take out 8960 hurdle.

ALL EYES ON BOJ, FED; 8690-8860 CONTINUES TO BE RANGE AT HOME

ALL EYES ON BOJ, FED; 8690-8860 CONTINUES TO BE RANGE AT HOME

WORLD MARKETS                             

US indices, after gaining about half a percent in the initial trade, gave away most of the gains through the session to end just marginally higher, awaiting the latest monetary policy decisions from the Federal Reserve and the Bank of Japan.

U.S. housing starts came in at an annualized rate of 1.14 million in August, well below the expected 1.19 million. Construction permits fell 0.4% to a 1.14 million-unit rate last month.

US oil ended 0.32% higher at $43.44 per barrel.

Dollar index rose to 96 from 95.84. U.S. Treasuries traded mixed, with the two-year note yield traded at 0.77% and the benchmark 10-year note yield around 1.69%.

AT HOME

Benchmark indices ended lower four tenth of a percent yesterday, breaking the four-day winning streak. Sensex lost 111 points to settle at 28523 while Nifty finished at 8776, down 32 points. BSE mid-cap and small-cap indices fell 0.1% and 0.3% respectively. Except a 0.3% and 0.2% rise in Metal and Oil & Gas indices respectively, all the BSE sectoral indices ended in red with Realty and Power indices leading the tally, down 1.9% and 0.8% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 1147 cr, 89 cr and 896 cr respectively. DIIs were net buyers to the tune of Rs 778 cr.

Rupee depreciated 5 paise to end at 67.01/$.

OUTLOOK

All eyes today would be on the Bank of Japan and US Federal Reserve, which are scheduled to issue policy statements today, at the end of their two-day policy review meetings.

There is some talk the Japanese central bank could cut rates further into negative territory, but it could also cut back on purchases of long-dated bonds while continuing to buy short-dated securities in  a bid to steepen the yield curve to mitigate the costs of negative rates. Market would also be interested in the outcome of an internal staff review of Japan's growth and inflation under the bank's quantitative and qualitative easing (QQE) and negative interest rate policies (NIRP).

Fed on the other hand is widely expected not to not to raise interest rate until December owing to global economic weakness, inconsistent U.S. data, upcoming US Presidential election and the failure of the market to price in a hike. Markets however would watch out for the tone of the policy statement and inflation forecast to guage the dovishness/hawkishness of the Fed and its assessment of the US economy.

Today morning, Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 10 points lower start for our market.

At the risk of repeating, 8690, the bottom made last week, which coincided with 34-DMA, continues to be important immediate support to eye, a breach of which will also confirm a lower-top lower-bottom formation on the daily chart. 8540, the bottom made towards the end of August, would be the next support in that case. On the way up, 8860, the upper level of the gap created by the big gap-down opening last Monday, continues to be the immediate hurdle, a crossover of which is required for the fresh upmove.

8860-8690 CONTINUES TO BE THE IMMEDIATE RANGE

8860-8690 CONTINUES TO BE THE IMMEDIATE RANGE

WORLD MARKETS                             

After rising more than half a percent in the intial trade, Dow and S & P 500 gave away all the gains through the session to end flat while Nasdaq lost 0.2%.

US oil settled 0.6% higher at $43.30 per barrel, after gaining more than 2%, as Venezuela President said that OPEC and non-OPEC countries were close to reaching an output stabilizing deal. Brent rose 0.4%.

Dollar index fell to 95.87 from 96.04. US treasuries fell, with the two-year note yield near 0.77% and the benchmark 10-year yield around 1.7%. Gold rose $8 to $1318 an ounce.

European markets climbed 1%-1.5%

AT HOME

Sensex and Nifty gained 0.1% and 0.3% respectively, extending the winning streak to fourth straight day. Sensex settled at 28634, up 35 points while Nifty added 29 points to finish at 8808. BSE mid-cap and small-cap indices gained 0.6% and 0.5% respectively. Except a 0.4% lower FMCG index, all the BSE sectoral indices ended in green with Realty and Metal indices leading the tally, up 1.6% and 1.3% respectively.

FIIs net bought stocks and stock futures worth Rs 205 cr and 101 cr respectively but net sold index futures worth Rs 431 cr. DIIs were net sellers to the tune of Rs 252 cr.

Rupee appreciated 2 paise to end at 66.96/$.

OUTLOOK

Today morning, except a 0.3% higher Nikkei, other Asian markets are trading with modest cuts and SGX Nifty is suggesting about 15 points lower start for our market.

In yesterday's report we had mentioned that 8860, the upper level of the gap created by the big gap down opening last Monday, continues to be the immediate hurdle to eye, upon sustained trading above which, 8970 would the next important resistance. We had also said that 8690, the bottom made last week, is the important support to eye, a close below which, will also confirm a lower-top lower-bottom formation on the daily chart and would pave the way for the retest of the 8540 bottom, from where the rally had begun in the fag end of August.

That continues to be the view. Traders should wait for the breach of 8860 on the upside or 8690 on the downside for taking a fresh view on Nifty.

Central banks in Japan and the U.S. begin closely watched two-day policy meetings today. US Federal Reserve is widely expected to stay put, following a deluge of disappointing U.S. data. The BOJ, meanwhile, is expected to take some action, as speculation points to a possible rate cut deeper into negative territory.

NIFTY RESISTED NEAR 8860 HURDLE; 8690 CONTINUES TO BE IMPORTANT SUPPORT

NIFTY RESISTED NEAR 8860 HURDLE; 8690 CONTINUES TO BE IMPORTANT SUPPORT

WORLD MARKETS                             

US indices fell 0.1%-0.5% on Friday, digesting key inflation data and lower oil and looking ahead to Federal Reserve meeting to be held this week.

US Consumer Price Index rose at a more than expected 0.2% rate last month after being unchanged in July. In the 12 months through August, the CPI increased 1.1% after advancing 0.8% in July. September consumer sentiment came in below the expected 90.8.

Market expectations for a rate hike next week rose slightly after the inflation data, but remained relatively low. U.S. Treasuries traded lower, with the two-year note yield at 0.77% and the benchmark 10-year note around 1.69%. The U.S. dollar index surged to 96.04 from 95.28.

US oil fell 2% to $43.03 per barrel .

European markets fell 0.3%-2.4% with banks leading the declines after the U.S. Department of Justice asked the German lender, Deutsche Bank, to pay $14 billion to settle allegations of mis-selling mortgage securities.

For the week, Dow eked out 0.2% gain, S & P 500 rose 0.5% while Nasdaq soared 2.3%. Europe ended deep in the red, with key markets falling 1%-3.5%. Asian markets too fell with Nikkei and Shanghai down 2.6% and 2.5% respectively while Hang Seng fell 3.2%.

AT HOME

After soaring a percent and fifth in the morning trade, Sensex and Nifty gave away about two third of these gains in sharp noon plunge to end higher by 0.66% and 0.43% respectively. Sensex settled at 28599, up 186 points while Nifty added 37 points to finish at 8780. BSE mid-cap index once again ended in red, losing 0.3%, while small-cap index rose 0.15%. BSE FMCG and IT indices climbed 1.2% each, becoming top gainers among sectoral indices while Metal index tumbled 1.3%, becoming top loser, followed by 0.5% lower Basic Material index.

FIIs net bought stock and index futures worth Rs 661 cr and 427 cr respectively but net sold stock futures worth Rs 522 cr. DIIs were net sellers to the tune of Rs 213 cr.

Rupee appreciated 4 paise to end at 66.98/$.

For the week, Sensex and Nifty lost 0.7% and 1% respectively.

OUTLOOK

Today morning, Japanese market is closed for a public holiday, other Asian markets are trading with gains of upto half a percent and SGX Nifty is suggesting a marginally higher start for our market.

After consolidating around and testing the 34-DMA support, Nifty on Friday surged to 8848, but slipped sharply from there to end at 8780. Readers would recall that for past couple of sessions we had been mentioning that 8860 is where the upper level of the gap created by the big gap down opening on Monday, would be the immediate hurdle to eye and the top made Friday was very close to it.

8860 continues to be the immediate hurdle to eye, upon sustained trading above which, 8970 would the next important resistance. 8690, the bottom made last week, is the important support to eye, a close below which, will also confirm a lower-top lower-bottom formation on the daily chart and would pave the way for the retest of the 8540 bottom, from where the rally had begun in the fag end of August.

NIFTY SET TO SURGE AFTER HOLDING 34-DMA SUPPORT; 8860 CONTINUES TO BE IMMEDIATE HURDLE

NIFTY SET TO SURGE AFTER HOLDING 34-DMA SUPPORT; 8860 CONTINUES TO BE IMMEDIATE HURDLE

WORLD MARKETS                             

Dow and S & P 500 climbed 1% each and Nasdaq surged 1.5% yesterday, supported by gains in Apple and rebound in oil and as weak retail sales data was seen as boosting the chances of the Federal Reserve keeping interest rates on hold this month.

Retail sales for August missed expectations, falling more than expected. Initial jobless claims came in at 260,000, slightly below expectations, while August PPI came in unchanged, missing expectations. Industrial production fell 0.4% in August, more than the expected 0.3% slide.

Apple soared 3.4%, taking weekly gains to 12%, on strong iPhone 7 sales.

US oil rose 0.8% to $43.91 per barrel.

Dollar index .Gold fell $8 to $1318 per ounce.

European markets gained 0.1%-0.8%. The Bank of England kept interest rates and its bond-buying program unchanged. The central bank raised its third-quarter growth forecast to 0.3% quarter-on-quarter from a previous estimate of 0.1%. It also said inflation would reach the 2% target in the first half of 2017. U.K. retail sales rose 6.2% year-on-year last month, beating market expectations.

AT HOME

It was yet another day of consolidation with positive bias as benchmark indices ended with modest gains after a range bound but choppy trade. Sensex added 41 points to settle at 28413 while Nifty finished at 8743, up 16 points. BSE mid-cap index however fell 0.2% while small-cap index rose 0.3%. BSE FMCG and Healthcare indices rose 0.7% and 0.5% respectively, becoming top gainers among the sectoral indices while Utilities and Consumer Durable indices were the top losers, down 1.2% and 1% respectively.

FIIs net bought stocks worth Rs 345 cr but net sold index futures and stock futures worth Rs 592 cr and 518 cr respectively. DIIs were net sellers to the tune of Rs 456 cr.

Rupee depreciated 13 paise to end at 67.02/$.

India's trade deficit in August narrowed 38% y-o-y to $7.674 bn while figure for July was $7.76 bn. Exports fell 0.3% y-o-y to $21.5 bn while imports were down 14.1% y-o-y at $29.2 bn.

Oil marketing companies hiked petro price by 58 paise/litre but cut diesel price by 31 paise.

OUTLOOK

Markets in China, Taiwan and Korea continue to remain shut for the second day. Other Asian markets are trading with gains in the vicinity of half a percent and SGX Nifty is suggesting about 40 points higher start for our market.

Readers would recall that we have been repeatedly telling that the region in the vicinity of 8700 is the crucial support area as the 61.8% retracement level of the 8544-8969 upmove and 34 DMA are placed at 8706 and 8685 respectively.

Nifty has consolidated around these levels for past three sessions and is set to open higher today, giving more credence to it.

8689, the bottom made this week, is the important immediate support to eye. On the way up, 8860 continues to be the immediate hurdle to eye.

NIFTY REBOUNDS FROM 34-DMA SUPPORT; 8860 IS THE IMMEDIATE HURDLE

NIFTY REBOUNDS FROM 34-DMA SUPPORT; 8860 IS THE IMMEDIATE HURDLE

WORLD MARKETS                             

After a positive start, Dow and S & P 500 saw a gradual downward move through the session to end lower by 0.1% and 0.2% respectively. Nasdaq however, supported by gains in Apple, rose 0.4%.

Oil initially rose on EIA data which showed US oil inventories fell by about 6 lac barrels last week, but could not hold those gains and reversed to end 2.9% lower at $43.58 per barrel.

US August import prices fell 0.2%. In the 12 months through August, import prices fell 2.2%, the smallest decrease since October 2014, after declining 3.7% in July.

Dollar index fell to 95.34 from 95.58. U.S. Treasuries rose after a large sell-off on Tuesday, with the two-year note yield near 0.75% and the 10-year note yield around 1.69%.

European markets, except a 0.1% higher FTSE, ended flat to modestly lower.

AT HOME

Benchmark indices ended marginally higher after a range bound but choppy trading session, breaking two-day losing streak. Sensex settled at 28372, up 19 points while Nifty added 11 points to finish at 8727. BSE mid-cap and small-cap indices however soared 1.3% and 1.2% respectively. BSE Basic Materials and Consumer Durable indices climbed 2% and 1.1% respectively, becoming top gainers among the sectoral indices while IT and Teck indices lost 0.7% and 0.4% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 477 cr, 551 cr and 769 cr respectively. DIIs were net sellers to the tune of Rs 9 cr.

Rupee appreciated 3 paise to end at 66.89/$.

OUTLOOK

Today, markets of China, Taiwan and Korea are shut. Hang Seng is modestly higher, but Nikkei is down more than a percent and SGX Nifty is suggesting about 25 points lower start for our market.

In yesterday's report we had mentioned that 8700, the Monday's low, also roughly coincides with the 61.8% retracement level of the 8544-8969 upmove as well as the 34-DMA placed at 8706 and 8685 respectively, and therefore is an important support to eye.

The benchmark, after touching a low of 8689, rebounded to close at 8727, holding on to the support levels mentioned above.

A sustained trading below 8685 would open up the possibility of the retest of the 8544 bottom.

On the way up, 8860, the upper level of the gap created by the big gap-down opening on Monday, continues to be the immediate hurdle to eye, above which, 8969, would be the next hurdle to eye.

NIFTY TESTS CRUCIAL 8700 SUPPORT; 8860 IS THE IMMEDIATE HURDLE

NIFTY TESTS CRUCIAL 8700 SUPPORT; 8860 IS THE IMMEDIATE HURDLE

WORLD MARKETS                             

US indices plunged 1.1%-1.5% yesterday, giving away all the gains made in the previous session, amid a spike in volatility and lower oil prices.

Energy stocks fell the most as US crude fell 3% to $44.90 and Brent slipped 2.5% to $47.10 after International Energy Agency (IEA) said that it may take longer for oil prices to re-balance, citing a faster-than-expected slowdown in global oil demand growth.

The CBOE Volatility Index (VIX) rose about 23% to 18.61.

U.S. Treasuries slipped, with the two-year note yield near 0.79% and the 10-year note yield around 1.71%.

Dollar index rose to 95.58 from 95.15. Gold fell $2 to $1324 per ounce.

US indices had soared 1.3%-1.7% on Monday after Lael Brainard, a Fed governor, said it would be wise to keep rates low despite continuous economic progress and Dennis Lockhart, Atlanta Fed president, said in a separate speech that a "serious discussion" on raising rates is warranted at the central bank's upcoming meeting.

European markets fell 0.4%-1.7% yesterday.

AT HOME

After a big gap down opening benchmark indices shed some more weight through rest of the session to finally end with deep cuts of more than a percent and half, registering the biggest daily fall since 24th June 2016. Sensex slumped 444 points to settle at 28354 while Nifty finished at 8716, down 151 points. BSE mid-cap and small-cap indices tumbled 3% and 2.4% respectively. Except a 0.9% and 0.3% higher IT and Teck indices respectively, all the BSE sectoral indices ended in red with Realty and Metal indices leading the tally, down 5.2% and 4.3% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 594 cr, 598 cr and 922 cr respectively. DIIs were net sellers to the tune of Rs 13 cr.

Rupee depreciated 24 paise to end at 66.92/$.

August CPI fell sharply to 5.05% y-o-y from 6.07% in July, thanks to a sharp fall in food inflation, which slowed to 5.91% from 8.35%. Separately, July index of industrial production came in at negative 2.4%, compared to 1.95% (revised) in June and an expectation of 1.37%, driven mainly by weakness in capital goods.

Tata Steel reported a consolidated loss of Rs 3183 cr for June quarter compared with Rs 317 cr in same period last fiscal, dented by discontinued operations. However, pre-exceptional underlying profit before tax stood at Rs 1080 cr against loss of Rs 234 cr in preceding quarter. Revenue fell 5.8% to Rs 26406 cr. Operational performance was very strong, with consolidated EBIDTA rising 21.4% to Rs 3270 cr due to improved operating performance across India, Europe and South East Asia. EBIDTA margin expanded 520 bps q-o-q and 280 bps y-o-y to 12.4%. Standalone profit shot up 35.3% to Rs 575 cr and revenue grew by 1.5% to Rs 10324 cr.

OUTLOOK

Today morning Asian markets are trading mixed and SGX Nifty is suggesting a marginally higher start for our market.

After Nifty breached immediate support of 8870 on Friday, on Monday, we had said that the benchmark was likely to test 8730-8690 zone where 8730 was the upper level of the erstwhile 8540-8730 consolidation phase while 20 DMA and 34-DMA were placed around 8720 and 8690 respectively.

The benchmark plunged to 8699 on Monday before closing at 8716, testing the support area mentioned above.

8700, the Monday's low, also roughly coincides with the 61.8% retracement level of the 8544-8969 upmove as well as the 34-DMA, and therefore is an important support to eye. A sustained trading below 8700 would open up the possibility of the retest of the 8544 bottom.

8860, the upper level of the gap created by the big gap-down opening on Monday, is the immediate hurdle to eye above which 8969, would be the next hurdle to eye.