NIFTY CROSSES 9860 HURDLE; STAY LONG WITH THE STOP-LOSS OF 9820

NIFTY CROSSES 9860 HURDLE; STAY LONG WITH THE STOP-LOSS OF 9820

WORLD MARKETS                             

US indices gained 0.1%-0.2% but backlash from the business community against President Donald Trump kept gains in check.

CEOs who were part of a strategic council to Trump agreed to disband the group and condemn Trump's confrontational response to a violent white supremacist rally in Charlottesville, Virginia. Shortly after this development, Trump took to Twitter to say he was ending that forum and another featuring manufacturing leaders.

The minutes of the July 26 Fed meeting showed Fed officials were split over the path of future monetary policy. While some Fed members said they were worried over the tightening labor market, others voiced their concern over low inflation rates in the U.S.

U.S. Treasury yields eased after the minutes' release, with the benchmark 10-year yield at 2.234% and the two-year yield at 1.33%. Dollar index fell about a third of a percent to 93.47.

Housing starts and permits fell unexpectedly last month.

Oil fell more than 1% on concerns that U.S. production was increasing.

European markets added 0.7%. Eurozone GDP grew by 2.2% in the second quarter which was slightly stronger-than-expected.

AT HOME

Benchmark indices soared a percent, extending the pullback rally to second straight day. Sensex settled at 31771, up 322 points while Nifty added 103 points to finish at 9897. BSE mid-cap and small-cap indices gained 1.3% each. Except a 0.1% lower Capital Goods and Utilities indices, all the BSE sectoral indices ended in green with FMCG and Metal indices leading the tally, up 2.5% and 1.7% respectively.

FIIs net sold stocks and index futures worth Rs 1090 cr and 1683 cr respectively but net bought stock futures worth Rs 201 cr. DIIs were net buyers to the tune of Rs 1337 cr.

Rupee depreciated 3 paise to end at 64.15/$.

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 9860, the 38.2% retracement level of the recent 10140-9685 fall, is the immediate hurdle, a crossover of which is required for a fresh upmove.

The benchmark surged 103 points to settle at 9897, crossing the 9860 hurdle decisively.

Next meaningful resistance would come around 10000, where a trendline adjoining recent tops on the hourly chart is placed.

Meanwhile, immediate support on the hourly chart is placed around 9820, with the stop-loss of which, trading longs should be held on to.