STAY LONG WITH THE STOP-LOSS OF 10040

STAY LONG WITH THE STOP-LOSS OF 10040

WORLD MARKETS                             

US indices gained 0.1%-0.2% and dollar slipped as the U.S. Federal Reserve began its two-day meeting.

In his address to United Nations, Trump said the U.S. would have to "totally destroy" North Korea if forced.

U.S. import prices posted their biggest gain in seven months in August amid a spike in petroleum costs.

Treasury yields rose slightly, with the benchmark 10-year yield at 2.24% and the two-year yield at 1.401%.

Brent crude settled 34 cents lower at $55.14 a barrel and U.S. crude lost 43 cents to settle at $49.48.

European markets gained upto 0.4%.

AT HOME

Benchmark indices ended marginally in the red after trading in a narrow range through the session. Sensex settled at 32402, down 21 points while Nifty finished at 10148, down 6 points. BSE mid-cap and small-cap indices gained 0.1% and 0.4% respectively. BSE Oil & Gas and Utilities indices climbed 1.2% each, becoming top gainers among the sectoral indices while Metal and Capital goods indices were the top losers, down 0.6% and 0.4% respectively.

FIIs net sold stocks and index futures worth Rs 1720 cr and 1029 cr respectively but net bought stock futures worth Rs 9 cr. DIIs were net sellers to the tune of Rs 78 cr.

Rupee depreciated 20 paise to end at 64.33/$, a near two-month low.

TRAI yesterday cut termination charge for all mobile to mobile calls to 6 paise per minute from 14 paise. The revised charge, effective October 1, will be reduced to zero from January 1, 2020. For calls between landlines, between mobiles and landlines and vice versa, this charge will continue to be nil,

OUTLOOK

Today morning, except a modestly higher Hang Seng, other Asian markets are trading flat to modestly lower and SGX Nifty is suggesting about 15 points lower start for our market.

After Nifty achieved the 10138 target, we are working with next immediate target of 10220. Yesterday, Nifty, after touching a high of 10180, slipped to end at 10148 and is set to open modestly lower today.

10040, the bottom made on Friday, continues to be immediate support,  below which trendline adjoining recent bottoms on daily chart, placed around 9950, would be the next important support to eye.

Traders are advised to hold long positions with the stop-loss of 10040.

The Fed is expected to keep interest rates steady when it announces its rates decision today but is expected to announce the unwinding of its $4.5 trillion portfolio. Markets will also look for cues to December rate hike.