9685 CONTINUES TO BE CRUCIAL SUPPORT; 9925 IMMEDIATE HURDLE

9685 CONTINUES TO BE CRUCIAL SUPPORT; 9925 IMMEDIATE HURDLE

WORLD MARKETS                             

US indices gained 0.3%-0.7% with all three main indices closing at record high.

The ISM manufacturing index rose to 60.8 in September, the highest read since May 2004.

Dollar index rose more than half a percent to 93.60.

U.S. crude fell $1.09, or 2.1% to $50.58. Brent crude was down 85 cents, or 1.5% at $55.94 a barrel.

European markets, except a 1.2% lower Spain, gained 0.4%-0.9%. Spanish index tumbled on the back of growing political concerns following Sunday's unofficial independence referendum in the region of Catalonia. IHS Markit final manufacturing purchasing managers' index for Eurozone hit 58.1, it's highest since 2011. Unemployment rate for August stood at 9.1%, the lowest since February 2009.

AT HOME

After gaining about nine tenth of a percent, benchmark indices gave away most of the gains in last hour plunge to end flat to marginally higher. Sensex settled 1 point higher at 31284 while Nifty added 20 points to finish at 9789. BSE mid-cap and small-cap indices however gained 0.8% and 1.1% respectively. BSE Realty index soared 2.4%, becoming top gainer among the sectoral indices, followed by 1.5% higher Utilities index. FMCG and IT indices were the top losers, down 0.7% and 0.3% respectively.

FIIs were net sellers to the tune of Rs 1547 in stocks but net bought index futures and stock futures worth Rs 342 cr and 703 cr respectively. DIIS were net buyers to the tune of Rs 2065 cr.

Rupee appreciated 22 paise to end at 65.28/$.

For the week, Sensex and Nifty lost 2% and 1.8% respectively.

The market regulator SEBI has deferred new guidelines with regard to disclosure of debt default by listed companies, just a day ahead of its implementation.

Auto companies reported strong sales for September. Maruti reported 9% higher September sales at 163071 units. Bajaj Auto reported 13.8% rise at 4.28 lakh units. Tata Motors domestic sales were up 25% at 53965 units. Eicher Motor's CV sales were up 26% at 60083 units while Royal Enfield sales were up 22% at 70431 units.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.4%-1% and SGX Nifty is trading around 9860, suggesting about 60 points higher start for our market when compared to Nifty future close of Friday.

While Nifty was recovering after achieving the downside target of 9685, we had said that 34-DMA, placed around 9925, is the immediate hurdle to eye, a decisive crossover of which is required for a fresh upmove. Nifty, on Friday, after touching a high of 9854, slipped to end at 9788 but is set to open higher today.

34-DMA, placed around 9925, continues to be immediate resistance to eye. 9685 continues to be crucial support.