NIFTY RESISTED NEAR 34-DMA; 9820 IMMEDIATE SUPPORT

NIFTY RESISTED NEAR 34-DMA; 9820 IMMEDIATE SUPPORT

WORLD MARKETS                             

US indices ended marginally in the green.

ISM nonmanufacturing index hit 59.8 in September, much higher than the 55.5 number expected. ADP and Moody's said that private-sector jobs grew by 135,000 in September, which was lower than August but topped expected print of 125000.

In Europe, DAX gained 0.5% while FTSE and CAC ended marginally lower. Spain and Italy plunged 2.8% and 1.4% respectively. Spain tumbled after the head of Catalonia's devolved government said his administration would declare independence from Spain "at the end of this week or the beginning of next."

Eurozone final composite Purchasing Managers' Index rose to 56.7 in September from 55.7 in August.

Oil prices fell for the third session with WTI down 44 cents to $49.98 a barrel after a surprising jump in U.S. crude exports to a record 2 million barrels per day. Brent fell 19 cents to $55.81.

AT HOME

Benchmark indices gained about six tenth of a percent to extend the winning streak to fourth straight day. Sensex added 174 points to settle at 31672 while Nifty finished at 9915, up 55 points. BSE mid-cap and small-cap indices gained 0.4% and 0.8% respectively. BSE Healthcare and Energy indices soared 1.8% each, becoming top gainers among the sectoral indices while Telecom index was the top loser, down 0.5%, followed by 0.2% lower Meatl and Teck indices.

FIIs net sold stocks worth Rs 632 cr but net bought index futures and stock futures worth Rs 802 cr and 1170 cr respectively. DIIs were net buyers to the tune of Rs 585 cr.

Rupee appreciated 49 paise to end at 65.01/$.

RBI kept interest rates unchanged because it anticipates upside risks to retail inflation. It maintained its neutral policy stance but lowered its fiscal 2018 projection for gross value added to 6.7% from 7.3%. RBI raise inflation forecast for second half of current fiscal to 4.2%-4.6%.

OUTLOOK

Markets in China, Hong Kong and South Korea are shut today, Nikkei is little changed and SGX Nifty is suggesting a flattish start for our market.

In yesterday's report we had reiterated the view that 34-DMA, placed around 9930, is the immediate hurdle, a decisive crossover of which is required for a fresh upmove.

Yesterday, Nifty, after touching a high of 9938, eased to end at 9915.

Just to reiterate, a decisive crossover of 34-DMA, placed around 9930, is required for a fresh upmove. If that happens, next immediate target would come around 10015, which is the two third retracement level of the recent fall.

9820 is the immediate support on the hourly chart below which 9685 would be the crucial support to eye.