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.