NIFTY TAKES OUT 9950 HURDLE; STAY LONG WITH THE STOP-LOSS OF 9890

NIFTY TAKES OUT 9950 HURDLE; STAY LONG WITH THE STOP-LOSS OF 9890

WORLD MARKETS                             

US indices gained 0.1%-0.2% on Friday after digesting weaker-than-expected employment data.

U.S. nonfarm payrolls for August showed 156,000 jobs were created, below the 180,000 forecast. Wages grew at an annualized rate of 2.5%, less than expected. Construction spending for July hit a nine-month low and national factory activity for August expanded more than expected.

The benchmark 10-year yield hit 2.11% before jumping to 2.155%. The dollar, meanwhile, traded more than half a percent lower before holding slightly above breakeven.

Brent crude fell 11 cents to settle at $52.75 a barrel while West Texas Intermediate added 6 cents to settle at $47.29 a barrel.

European markets added 0.1%-0.9%. Basic resources were higher after data showed the Caixin China manufacturing PMI for August hit a six-month high of 51.6, topping analyst expectations. Euro zone manufacturing PMI confirmed an earlier reading of 57.4 for August. In the U.K., the manufacturing purchasing managers' index rose to a four-month high of 56.9 in August, beating forecasts.

For the week, US indices gained 0.8%-2.7%, with the Nasdaq notching its best weekly performance of the year. In Europe, FTSE gained 0.4% but DAX and CAC lost 0.9% and 0.4% respectively. Asian markets gained 0.4%-1.2%.

North Korea yesterday claimed that it had conducted a test of a hydrogen bomb meant to be carried by a long-range missile. The test — which the North called a "perfect success" — was estimated to have an explosive yield of up to 100 kilotons.

Following this, the US Treasury Department chief said they will prepare a package of sanctions that would "cut off North Korea economically"

AT HOME

Benchmark indices gained about half a percent, extending the winning streak to third straight day. Sensex settled at 31892, up 162 points while Nifty finished at 9974, up 56 points. BSE mid-cap and small-cap indices climbed 1% and 0.8% respectively. BSE Realty index jumped 2.6%, becoming top gainer among the sectoral indices, followed by 1.9% higher Auto and Metal indices. Telecom and Consumer Durable indices were the top losers, down 0.4% and 0.3% respectively.

FIIs net sold stocks worth Rs 833 cr but net bought index futures and stock futrues worth Rs 294 cr and 93 cr respectively. DIIs were net buyers to the tune of Rs 732 cr.

Rupee depreciated 12 paise to end at 64.02/$.

For the week, Sensex and Nifty gained 0.9% and 1.2% respectively.

India's Nikkei/Markit manufacturing PMI rose to 51.2 in August from 47.9 in July.

Auto sales were mostly good. Escorts reported 23% jump in August sales at 4587 units. Tata Motors sold 48988 units, a growth of 14%. Maruti sales jumped 23.8% to 1.63 lakh units. Eicher Motor sold 67977 Royal Enfield, a growth of 22%. M & M total sales rose 4% to 42116 while tractor sales were up 22% at 16516 units. TVS Motors and Hero Motocorp reported 16% and 10% growth respectively in August sales.

In yesterday's Cabinet reshuffle 9 new ministers were inducted as Cabinet ministers. Nirmala Sitharaman was made India's first full-fledged woman defence minister. Piyush Goyal will be India’s new Railway Minister. Petroleum Minister Dharmendra Pradhan and the Minority Affairs Minister Mukhtar Abbas Naqvi have been elevated to Cabinet rank. Suresh Prabhu will be the commerce and industry minister replacing Sitharaman.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.2%-1% and SGX Nifty is suggesting about 20 points lower start for our market.

Nifty on Friday climbed 56 points to end at 9974, taking out the immediate hurdle of 9950. Next hurdle would come around 10100. Immediate support on the hourly chart is placed around 9890, with the stop-loss of which, trading longs should be held on to.

U.S. markets will be closed today for Labor Day.