9685 BELOW 9783; 9948 CONTINUES TO BE IMPORTANT HURDLE

9685 BELOW 9783; 9948 CONTINUES TO BE IMPORTANT HURDLE

WORLD MARKETS                             

US indices reversed opening losses to end with gains of 0.1%-0.3%, shrugging off tension between the U.S. and North Korea.

United Technologies and Boeing contributed the most to the gains in Dow. Apple hit a record high.

President Trump, in a statement said that "all options are on the table" for dealing with North Korea.

In economic news, home price index rose slightly from May to June. Consumer confidence hit 122.9 in August, higher than the expected number of 120.3.

Gold futures for December delivery rose 0.3% to settle at $1,319 per ounce — its highest level since September 2016 — while the 10-year US Treasury yield hit its lowest level since November on safe haven buying.

Brent crude futures added 11 cents to settle at $52 a barrel while U.S. crude futures lost 13 cents to settle at $46.44.

European markets ended with cuts of 0.9%-1.5%. German Gfk consumer sentiment index rose to 10.9 going into September, marking the fifth consecutive monthly increase. The U.K.'s nationwide house prices index showed house prices down by 0.1% month-on-month. The yearly growth figure fell 2.1% from 2.9% in July.

AT HOME

After a gap down opening on the back of fresh missile launch by North Korea, benchmark indices saw a sustained downward move through the session to end with deep cuts of about a percent and fifth and breaking four-day winning streak. Sensex plunged 362 points to settle at 31388 while Nifty finished at 9796, down 117 points. BSE mid-cap and small-cap indices fell 0.8% and 1% respectively. All the BSE sectoral indices ended in red with Telecom and Energy indices leading the losses, down 1.9% and 1.6% respectively.

FIIs net sold stocks and stock futures worth Rs 1460 cr and 68 cr respectively but net bought index futures worth Rs 241 cr. DIIs were net buyers to the tune of Rs 1391 cr.

Rupee depreciated 11 paise to end at 64.02/$.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.1%-0.7% and SGX Nifty is suggesting about 40 points higher start for our market.

In yesterday's report we had mentioned that "Immediate support on the hourly chart is placed around 9800, below which 9685, the bottom made in August, would be the crucial support to eye".

The benchmark touched a low of 9783 before closing at 9796, but is set to open higher today.

A breach of 9783 would confirm a sell on the hourly chart and would pave the way for further correction. 9685, the bottom made in August so far, would be the next crucial support if that happens.

9948, the top made on 17th August, continues to be important hurdle, a crossover of which is required for a fresh upmove.