NIFTY AGAIN RESISTED NEAR 10138; 9925 IS THE IMPORTANT SUPPORT

NIFTY AGAIN RESISTED NEAR 10138; 9925 IS THE IMPORTANT SUPPORT

WORLD MARKETS                             

Dow gained 0.2% but S & P 500 and Nasdaq fell 0.1% and 0.5% respectively as strong inflation data raised the possibility of tighter monetary policy.

The Consumer Price Index rose 1.9% y-o-y in August, a touch above the 1.8% increased forecast.

The benchmark 10-year yield rose to 2.22% before trading at 2.197%. Dollar index, after touching a high of 62.66, slipped to end at 92.13.

Brent crude rose 0.6% to $55.47 a barrel, its highest level in around five months. WTI crude added 1.2% to settle at $49.89.

In Europe, FTSE nosedived 1.1% while other markets ended mixed with modest changes. FTSE was dragged down by a fall in U.K. miners and an uptick in Sterling, which rose on the Bank of England's suggestion that an interest rate hike could emerge in the "coming months."

AT HOME

Benchmark indices ended marginally higher after a choppy session. Sensex added 55 points to settle at 32242 while Nifty finished at 10087, up 7 points. BSE mid-cap and small-cap indices climbed 0.6% each. BSE Healthcare index soared 2.1%, becoming top gainer among the sectoral indices, followed by 0.9% higher Industrial index. Metal and Realty indices lost 0.7% and 0.5% respectively, becoming top losers.

FIIs net sold stocks and index futures worth Rs 1334 cr and 484 cr respectively but net bought stock futures worth Rs 58 cr. DIIs were net buyers to the tune of Rs 793 cr.

Rupee depreciated 14 paise to end at 64.13/$.

WPI inflation touched a four-month high of 3.24% in August, up from 1.88% in July.

OUTLOOK

North Korea launched a missile which flew over Japan before landing in the sea. The hermit state had warned through a state agency on Thursday that it would "sink" Japan and turn US to ashes and darkness.

Except a 0.1% higher Nikkei, other Asian markets are trading with cuts of upto 0.7% and SGX Nifty is suggesting about 60 points lower start for our market.

Readers would recall that for past two days we have been saying that traders should book some profit in long positions and wait for the decisive crossover of 10138, the highest high made in early August, for taking a fresh positive view.

Nifty has been facing resistance around this level for past two sessions and is set to open sharply lower today.

We would like to reiterate that a decisive crossover of 10138 is required for a fresh upmove.

On the way down, 20 DMA+rising trendline is now placed around 9925, which makes 9925 an important immediate support to eye. Before that 10000 is the nearest support on the hourly chart.