11250-10866 CONTINUES TO BE IMMEDIATE RANGE

11250-10866 CONTINUES TO BE IMMEDIATE RANGE

WORLD MARKETS

US indices gained 0.2%-0.6%, with the S & P 500 breaking 4-day losing streak, as gains in Apple and Amazon led tech shares higher.

Trump accused China of intending to interfere in November's congressional elections. This prompted an immediate rejection from the Chinese government. Trump also criticized Canada for the slow pace of discussions concerning the overhaul of NAFTA.

US crude rose 55 cents to $72.12 and Brent added 21 cents to $81.55.

Dollar index rose about three fourth of a percent to 94.99 as Euro tumbled amid concerns over Italy's budget and deficit targets for next year.

European markets, except 0.6% lower Italy, gained 0.4%-0.5%.

AT HOME

After gaining a third of a percent in the initial trade, benchmark indices nosedived a percent from the top of the day to end lower by about two third of a percent. Sensex settled at 36324, down 218 points while Nifty lost 76 points to finish at 10977. BSE mid-cap and small-cap indices nosedived 2.2% and 2% respectively and closed at the lowest level since 22 August 2017 and 30 May 2017 respectively. Except a 0.8% and 0.6% higher IT and Teck indices respectively, all the BSE sectoral indices ended in red with Realty index leading the losses, down 2.8%, followed by 2% lower Capital Goods and Finance indices.

FIIs net bought stocks and stock futures worth Rs 552 cr and 780 cr respectively but net sold index futures worth Rs 1536 cr. DIIs were net sellers to the tune of Rs 187 cr.

Rupee appreciated 2 paise to end at 72.59/$.

For the September derivative series, Nifty plunged 6%.

OUTLOOK

Today morning, Nikkei is up 1.4% while Hang Seng and Shnaghai are up 0.3% and 0.1% respectively. SGX Nifty is suggesting about 50 points higher strat for our market.

For past couple of sessions we have been mentioning that 10866-10750 is the crucial support zone as it hosts trendline adjoining bottoms made in December 2016 and March 2018, 34-week moving average as well as 200-DMA. Also, we have been pointing out that 11250 is the immediate hurdle, a crossover of which is required for a fresh upmove.

Nifty, after touching a low of 10866 last Friday, rebounded to touch a high of 11145 on Wednesday from where it eased to end at 10977 yesterday and is set to open above 11000 today.

11250 continues to be immediate hurdle to eye. Also, 10866-10750 continues to be crucial support zone.

11250 CONTINUES TO BE IMMEDIATE HURDLE; 10866-10750 CONTINUES TO BE IMPORTANT SUPPORT ZONE

11250 CONTINUES TO BE IMMEDIATE HURDLE; 10866-10750 CONTINUES TO BE IMPORTANT SUPPORT ZONE

WORLD MARKETS

US indices fell 0.2%-0.4% on the back of U.S. Federal Reserve Chairman Jerome Powell's comments on inflation after the central bank decided to increase interest rates.

Fed raised its target overnight rate by 25 bps to a range of 2%-2.25%, marking the third hike this year, as was widely expected. The central bank dropped the word "accommodative" from its statement in how it describes its monetary policy. Later, Powell told reporters that the Fed did not see inflation surprising to the upside noting: "It's not in our forecasts."

The comment sent rates lower, along with bank stocks. The 10-year Treasury note yield fell to 3.06%.

Earlier, Fed upped outlook for U.S. economic growth this year from 2.8% to 3.1% and for next year from 2.4% to 2.5%.

US crude fell 1% to $71.57 a barrel and Brent fell 39 cents to $81.48 after U.S. data showed a surprise build in domestic crude inventories.

European markets ended little changed, except 0.6% higher DAX.

AT HOME

After gaining more than half a percent in the opening trade, Sensex and Nifty indices gave away all the gains and more through the session to end lower by 0.3% and 0.1% respectively. Sensex settled at 36542, down 110 points while Nifty lost 14 points to finish at 11053. BSE mid-cap and small-cap indices however gained 0.4% and 0.1% respectively. BSE IT index fell 1.6%, becoming top loser among the sectoral indices, followed by 1.4% lower FMCG and Teck indices. Metal and Realty indices were the top gainers, up 1.7% each.

FIIs net sold stocks worth Rs 810 cr but net bought index futures and stock futures worth Rs 279 cr and 707 cr respectively. DIIs were net buyers to the tune of Rs 1555 cr.

Rupee appreciated 9 paise to end at 72.60/$.

The government has hiked import duty on high-end consumer items including washing machines, air conditioner, footwear, radial car tyre, diamonds, jet fuel as a part of its plan to reduce current account deficit (CAD) and stabilise rupee.

The Union Cabinet also approved the new telecom policy. The telecom policy is focused on increasing high-speed broadband penetration with use of modern technologies like 5G and optical fibres across the country at affordable rates.  Further, the policy also aims to rationalize the spectrum charges. The telecom sector is reeling under a huge debt with interest coverage ratios of some of the telcos such as Bharti Airtel falling below one and rationalizing of spectrum charges could possibly help the telecom operators to keep their debt under check and will help them to participate in the auctions.

Further, the government approved a Rs 45 billion package for the sugar industry. The Cabinet Committee on Economic Affairs (CCEA) approved the food ministry's proposal that seeks to address the surplus domestic stock of sugar and help mills in clearing huge cane arrears of around Rs 130 billion. This is the second financial package to bail out the sugar industry after Rs 85 billion package announced in June.

OUTLOOK

Today morning, Nikkei is up 0.1% while Hang Seng and Shanghai are down 0.3% each. SGX Nifty is suggesting about 20 points higher start for our market.

After rebounding from the vicinity of 10866 bottom made last week on Tuesday, yesterday was a day of consolidation as Nifty, after touching a high of 11145 at the open, eased to end 14 points lower at 11053.

As we have been mentioning, 10866-10750 continues to be important support zone to eye. Also, 11250 continues to be immediate hurdle, a crossover of which is required for a fresh upmove.

NIFTY REBOUNDS FROM THE VICINITY OF 10866-10750 SUPPORT ZONE; 11250 CONTINUES TO BE IMMEDIATE HURDLE

NIFTY REBOUNDS FROM THE VICINITY OF 10866-10750 SUPPORT ZONE; 11250 CONTINUES TO BE IMMEDIATE HURDLE

WORLD MARKETS

Dow and S & P 500 fell 0.3% and 0.1% respectively while Nasdaq gained 0.2% following the White House's restatement of its tough stance on trade.

Trump, speaking at the United Nations General Assembly, said the U.S. "will no longer tolerate abuse" on trade. Trump's statement came after U.S. Trade Representative Robert Lighthizer said his country was ready to move ahead on a trade deal with Mexico even if it excluded Canada.

The 10-year Treasury note yield climbed to 3.11%. The Federal Open Market Committee begins its two-day monetary policy meeting, with markets expecting the central bank to raise rates by a quarter point.

US consumer confidence rose in September to its highest level in about 18 years.

US crude rose 20 cents to $72.28 while Brent rose 70 cents or nearly a percent to $81.90 a barrel.

European markets climbed 0.7%-1.7% with FTSE on the top.

AT HOME

Benchmark indices ended higher by nearly a percent after wild intraday swings, breaking five-day losing streak. Sensex settled at 36652, up 347 points while Nifty added 100 points to finish at 11067. BSE mid-cap index gained 0.4% but the small-cap index fell 0.7%. BSE Healthcare index and Bankex climbed 1.8% and 1.4% respectively, becoming top gainers among the sectoral indices while Realty index tumbled 1.7%, becoming top loser, followed by 0.9% lower Utilities index.

FIIs net sold stocks and index futures worth Rs 1232 cr and 793 cr respectively but net bought stock futures worth Rs 649 cr. DIIs were net buyers to the tune of Rs 2284 cr.

Rupee depreciated 6 paise to end at 72.69/$.

OUTLOOK

Today morning, Nikkei is off 0.2% but Hang Seng and Shanghai are up 0.7% and 0.3% respectively. SGX Nifty is suggesting about 40 points higher start for our market.

In yesterday's report we had reiterated the view that "10866-10750 is a crucial support zone as 10866, the bottom made on Friday, also coincides with a trendline adjoining bottoms made in December 2016 and March 2018 while 34-week and 200-day moving averages are placed around 10800 and 10750 respectively".

Nifty, after touching a low of 10882, rebounded sharply to end at 11067, holding on to this support zone, and is set to open above 11100 today.

11250, which is the immediate previous bottom on the daily chart, continues to be immediate hurdle to eye, a crossover of which is required for a fresh upmove. 10866-10750 continues to be important support zone.

10866-10750 CONTINUES TO BE IMPORTANT SUPPORT ZONE; 11250 IMMEDIATE HURDLE

10866-10750 CONTINUES TO BE IMPORTANT SUPPORT ZONE; 11250 IMMEDIATE HURDLE

WORLD MARKETS

Dow and S & P 500 fell 0.7% and 0.4% respectively while Nasdaq gained 0.1% amid political uncertainty and cancellation of U.S.-China trade talks.

News reports suggested that Deputy Attorney General Rod Rosenstein was about to resign or be fired. A White House statement later said Rosenstein and President Trump will meet on Thursday amid the conflicting reports.

New tariffs on U.S. and Chinese goods took effect while both countries also cancelled trade talks.

Brent soared $2.50 or 3.2% to $81.20, its best level since November 11, 2014 while WTI rose $1.30 or 1.8% to $72.08.

The benchmark 10-year Treasury note yield traded at 3.08%.

European markets fell 0.3%-0.9%.

AT HOME

It was a weak start to the week as benchmark indices plunged a percent and half, extending the losing streak to fifth straight day and closing at the lowest level since 11th July and 19th July for Sensex and Nifty respectively. Sensex lost 536 points to settle at 36305 while Nifty finished at 10975, down 168 points. BSE mid-cap and small-cap indices tumbled 2.4% and 2.7% respectively. BSE Realty and Auto indices collapsed 5.1% and 3.8% respectively, becoming top losers among the sectoral indices while IT and Teck indices were the top gainers, up 2.1% and 1.4% respectively.

FIIs net sold stocks and stock futures worth Rs 524 cr and 1310 cr respectively but net bought index futures worth Rs 522 cr. DIIs were net buyers to the tune of Rs 1528 cr.

Rupee depreciated 43 paise to end at 72.63/$.

OUTLOOK

Today morning, Hang Seng is shut, Nikkei is up 0.1% while Shanghai is down 0.4%. SGX Nifty is suggesting a flattish start for our market.

In yesterday's report we had said that "10866-10750 is a crucial support zone as 10866, the bottom made on Friday, also coincides with a trendline adjoining bottoms made in December 2016 and March 2018 while 34-week and 200-day moving averages are placed around 10800 and 10750 respectively".

Nifty yesterday plunged 168 points to close at 10967 and is set to open flat today.

10866-10750 continues to be important support zone to eye.

11250, the previous bottom on the daily chart, is the immediate resistance to eye.

10866-10750 IS THE CRUCIAL SUPPORT ZONE; 11350 IMMEDIATE HURDLE

10866-10750 IS THE CRUCIAL SUPPORT ZONE; 11350 IMMEDIATE HURDLE

WORLD MARKETS

Dow gained 0.3%, S & P 500 ended flat while Nasdaq fell half a percent on Friday

US crude rose 46 cents to $70.78 ahead of a meeting of OPEC and other large crude exporters.

European markets gained 0.7%-1.7% with FTSE on the top. Following an informal summit in Austria, British leader said that the U.K. and EU were at an "impasse" in Brexit discussions. Streling plunged 1.3% against the dollar following the news.

Wall Street Journal reported that China had called off planned trade talks with the U.S. in the wake of a new round of duties.

For the week, Dow soared 2.2%, S & P 500 gained 0.8% but Nasdaq fell 0.3%. In Europe, FTSE and DAX soared 2.5% each and CAC was up 2.6%. In Asia, Shanghai took the lead with 4.3% gain, followed by 3.4% higher Nikkei and 2.4% up Hang Seng.

The markets in Japan, South Korea and China are closed for public holidays on Monday. The U.S.-China trade war remains in focus, with tariffs from both parties due to go into effect at 12.01 p.m. HK/SIN today.

AT HOME

It was a manic Friday as after gaining nearly a percent in first hour, benchmark indices nosedived about 4% from top of the day, only to rebound sharply to end lower by just eight tenth of a percent. Sensex settled at 36841, down 280 points while Nifty lost 91 points to finish at 11143. BSE mid-cap and small-cap indices plunged 1.7% and 3% respectively. Except 1.5% higher Oil & Gas index, all the BSE sectoral indices ended in red with Realty index and Bankex leading the losses, down 3.5% and 3.1% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 761 cr, 1564 cr and 616 cr respectively. DIIs were net buyers to the tune of Rs 497 cr.

Rupee appreciated 18 paise to end at 72.20/$.

Shares of Yes Bank fell 29% after RBI denied a three-year extension to CEO Rana Kapoor and asked him to step down after 31 January 2019.

Shares of NBFCs, led by DHFL, plunged sharply in on concerns over rising cost of borrowing for these companies amid continuing financial crisis at IL&FS. Management of DHFL however clarified that it is not facing in liquidity issue.

SEBI and RBI said over the weekend that they are watching the situation closely and are ready to take appropriate action if necessary. Also RBI will meet shareholders of IL&FS on 28th September.

OUTLOOK

Today, the markets in Japan, South Korea and China are closed for public holidays, Hang Seng is down more than a percent and SGX Nifty is suggesting about 20 points lower start for our market.

Readers would recall that after 11380 support was taken out, we had given downside target of 11160, which was the 50% retracement level of the 10560-11760 upmove.

However, in Friday's turmoil Nifty plunged all the way to 10866, from where it rebounded sharply to end at 11143.

10866, the bottom made on Friday, coincides with the trendline adjoining bottoms made in December 2016 and March 2018. It is also very close to 34-week moving average placed around 10800 and 200-DMA placed at 10750. This makes 10866-10750 a crucial support zone.

On the way up, 11350, the top made on Friday, would act as immediate hurdle above which 20-DMA, placed around 11500, would be the next major resistance.

11370 IS THE IMMEDIATE HURDLE; 11160 BELOW 11210

11370 IS THE IMMEDIATE HURDLE; 11160 BELOW 11210

WORLD MARKETS

Dow and Nasdaq soared 1% each while S & P 500 rose 0.8%, with the Dow hitting its first record high since January 2018 as trade fears eased. S & P 500 too hit fresh record.

China's commerce ministry said it hopes the U.S. would take steps to correct its behavior.

WTI crude fell 38 cents at $70.80 and Brent eased 80 cents to $78.60 after Trump, in a tweet, called on OPEC to "get prices down now!"

Dollar index fell nearly a percent to 93.90, its lowest in 2.5 months.

European markets gained 0.5%-1%. U.K. retail sales jumped 3.3% y-o-y in August, beating analyst expectations. Sterling jumped 0.7% to $1.323, lifted by the sales numbers and optimism over Brexit.

AT HOME

After gaining about half a percent in the morning, benchmark indices reversed these gains in noon trade to end lower by four tenth of a percent, extending the losing streak to third straight day. Sensex lost 169 points to settle at 37121 while Nifty finished at 11234, down 44 points. BSE mid-cap and small-cap indices fell 0.7% and 1% respectively. BSE FMCG, Finance and Realty indices fell 1% each, becoming top losers among the sectoral indices while Metal index soared 1.2%, becoming top gainer, followed by 1% higher Oil & Gas index.

FIIs net sold stocks and stock futures worth Rs 2185 cr and 59 cr respectively but net bought index futures worth Rs 355 cr. DIIs were net buyers to the tune of Rs 1201 cr.

Rupee appreciated 60 paise to end at 72.37/$.

RBI told that Yes Bank MD and CEO, Rana Kapoor's term will end on 31st January 2019.

OUTLOOK

Today morning, Nikkei and Hang Seng are up 0.4% and 0.8% respectively while Shanghai is little changed. SGX Nifty is trading around 11350, suggesting 80 points higher start when compared to close of Nifty future on Wednesday.

After Nifty broke the 11430-11380 support zone on Monday, we had given downside targets of 11340 followed by 11250. On Wednesday we had said that if 11250 gives way, 11160, the 50% retracement level of the 10560-11760 upmove, would be the next support to eye.

Nifty, touched a low of 11210 before closing at 11234 on Wednesday and is set to open around 11300 today.

While 11370 is the immediate hurdle on the hourly chart, 11470-11500 where the former is 34-DMA and later is 20-DMA, would be the tougher resistance zone to eye.

11210, the bottom made on Wednesday, is the immediate support, below which 11160, as mentioned above, would be the next support to eye.

NIFTY NEARS 11250 SUPPORT

NIFTY NEARS 11250 SUPPORT

WORLD MARKETS

US indices climbed 0.5%-0.8% despite a further escalation in the ongoing trade war between Washington and Beijing as investors considered the latest tariffs to be not as bad as previously feared. Tech shares bounced back from Monday's sell-off.

After the Trump administration announced 10% tariffs on approximately $200 billion worth of Chinese imports from Sept. 24, China announced that it was placing tariffs on approximately $60 billion worth of goods from the U.S. Some products which had previously been designated a 20% tariff, however, were revised down to 10%.

The yield on the benchmark 10-year Treasury note rose 5 bps to 3.055%, its highest level since May 23.

WTI climbed 94 cents or 1.4% to $69.85 a barrel and Brent rose $1.01 or 1.3% to $79.06 on signs that OPEC would not be prepared to raise output to address shrinking supplies from Iran, and as Saudi Arabia signaled an informal target near current levels.

European markets, except a marginally lower FTSE, gained 0.3%-0.6%.

AT HOME

Sensex and Nifty tumbled 0.8% and 0.9% respectively, extending the losing streak to second consecutive day and closing at the lowest level since 2nd August, marking a one and a half month low. Sensex lost 295 points to settle at 37290 while Nifty finished at 11278, down 98 points. BSE mid-cap and small-cap indices slipped 1.5% each. Except a 0.9% higher FMCG index, all the BSE sectoral indices ended in red with Realty and Power indices leading the tally, down 3.1% and 2% respectively.

FIIs net sold stocks and stock futures worth Rs 1144 cr and 1162 cr respectively but net bought index futures worth Rs 965 cr. DIIs were net buyers to the tune of Rs 265 cr.

Rupee depreciated 46 paise to end at record low of 72.97/$.

SEBI, after its board meeting yesterday, announced opening of commodity derivative market to foreign investors, cutting the listing timeline after an IPO to T+3 from T+6 at present and reduction in total expense ratio for investing in mutual funds. It also said that a revised circular on KYC norms for FPIs will be issued soon and mandated large firms to tap the bond market for 25% of incremental borrowings.

The stock of Bank of Baroda and Vijaya Bank ended the day trading lower by 16.6% and 6.3% respectively while Dena Bank hit the upper circuit. This is after the government declared its intentions to amalgamate the above banks.  Dena Bank is the weakest amongst the lot of the amalgamating banks with net non-performing assets exceeding 11%. The stock of Dena Bank surged as a weaker bank is getting subsumed in a much larger strong franchise. This is the same reason why Bank of Baroda and Vijaya Bank fell.  These good banks will now have a weaker franchise i.e Dena Bank under its umbrella, which may not be value accretive for their shareholders. Hence, there was heavy selling seen in their stocks.

OUTLOOK

Today morning, Nikkei and Hang Seng are up 1.5% and 0.5% respectively while Shanghai if flat. SGX Nifty is suggesting a flattish start for our market.

After Nifty broke the 11430-11380 support zone, we had said that "11340, the 67% retracement level of the recent 11250-11523 upmove, is the next support to eye below which 11250, the bottom made last week, would be the next important support.

Nifty touched a low of 11268 before closing at 11278, achieving 11340 target and moving very close to 11250 target.

11250, the bottom made last week, continues to be immediate support, upon breach of which 11160, the 50% retracement level of the 10560-11760 upmove, would be the next support to eye.

11523, the top made Friday, continues to be immediate hurdle.

11340, 11250 ARE DOWNSIDE SUPPORTS; 11523 IMMEDIATE HURDLE

11340, 11250 ARE DOWNSIDE SUPPORTS; 11523 IMMEDIATE HURDLE

WORLD MARKETS

Dow and S & P 500 fell 0.4% and 0.6% respectively while Nasdaq plunged 1.4%, after Trump said an announcement on U.S.-China trade will be coming after the close. China's foreign ministry, meanwhile, stated China would retaliate in kind to the U.S. if it initiates fresh tariffs.

In a tweet, Trump said that tariffs have "put the U.S. in a very strong bargaining position," adding: "If countries will not make fair deals with us, they will be 'Tariffed!'"

In Europe, FTSE and CAC ended marginally lower, DAX was down 0.2% while Italy and Spain rose 1% and 0.4% respectively.  Euro zone annual inflation slowed slightly to 2% in August from 2.1% in July, confirming an earlier estimate.

Later on White House announced 10% tariffs on $200 billion worth of Chinese imports, and those duties will rise to 25% at the end of the year.

AT HOME

After a gap down opening, Sensex and Nifty drifted further lower through the session to end with deep cuts of 1.3% and 1.2% respectively. Sensex lost 505 points to settle at 37585 while Nifty finished at 11377, down 137 points. BSE mid-cap and small-cap indices fell 0.8% and 0.05% respectively. BSE Finance and Energy indices tumbled 1.4% and 1.3% respectively, becoming top losers among the sectoral indices while Realty index soared 1.4%, becoming top gainer, followed by 0.1% higher Power index.

FIIs net sold stocks, index futures and stock futures worth Rs 107 cr, 617 cr and 729 cr respectively. DIIs were net sellers to the tune of Rs 180 cr.

Rupee depreciated 66 paise to end at 72.51/$.

Government, yesterday evening, announced the proposal to merge three public sector lenders - Bank of Baroda, Dena Bank and Vijaya Bank.

OUTLOOK

Today morning, Nikkei is up 0.5% while Hang Seng and Shanghai are down 0.8% and 0.1% respectively. US futures are down about three tenth of a percent. SGX Nifty is suggesting about 30 points lower start for our market.

In yesterday's report we had said that 11523, the top made on Friday, is the immediate hurdle while 11430-11380, the gap created by the gap up opening on Friday, is the immediate support zone to eye.

Nifty, touched a low of 11367 and closed at 11377, breaking below above mentioned support one and is set to open around 11350 today.

11340, the 67% retracement level of the recent 11250-11523 upmove, is the next support to eye below which 11250, the bottom made last week, would be the next important support to eye.

On the way up, 11523, the top made on Friday, continues to be immediate hurdle above which 11603 would be the next important hurdle to eye.

11430-11380 IS THE SUPPORT ZONE; 11630 ABOVE 11523

11430-11380 IS THE SUPPORT ZONE; 11630 ABOVE 11523

WORLD MARKETS

Nasdaq ended marginally in the red while Dow and S & P 500 gained a bit on Friday amidst reports that Trump instructed aides to proceed with tariffs on about $200 billion more of Chinese products. 

Financials rose as the benchmark 10-year note yield hit 3% for the first time since Aug. 2.

WTI oil settled up 40 cents at $68.99 a barrel while Brent dropped 5 cents a barrel to $78.12.

European markets gained 0.2%-0.6%.

For the week, US indices gained 0.9%-1.4% with Nasdaq on the top. In Europe, FTSE rose 0.4% while DAX and CAC climbed 1.4% and 1.9% respectively. In Asia, Nikkei was the star performer with 3.5% uptick, followed by 1.2% higher Hang Seng while Shanghai fell 0.8%.

After a volatile week, Brent posted a 1.7% weekly rise and WTI gained 1.9%.

AT HOME

Sensex and Nifty soared 1% and 1.3% respectively, extending the winning streak to second straight day. Sensex settled at 38090, up 372 points while Nifty added 145 points to finish at 11515. BSE Mid-cap and small-cap indices climbed 1.6% and 1.4% respectively. All the BSE sectoral indices ended in green with Realty index leading the tally, up 3.3%, followed by 2.7% higher Basic Materials index.

FIIs net bought stocks, index futures and stock futures worth Rs 1091 cr, 458 cr and 221 cr respectively. DIIs were net buyers to the tune of Rs 115 cr.

Rupee appreciated 34 paise to end at 71.85/$.

For the week, Sensex and Nifty lost 0.8% and 0.6% respectively, extending the losing streak to second straight week.

Finance Minister on Friday announced five decisions to increase dollar inflows into the country to fund and reduce the current account deficit (CAD). These include;

Mandatory hedging conditions for infrastructure loans through the external commercial borrowing (ECB) route will be reviewed and a 20% exposure limit on investments by foreign portfolio investors in debt to a single corporate group will be removed. Government will permit the manufacturing sector to access ECBs up to $50 million with residual maturity of one year instead of three years. Masala bonds will be exempted from withholding tax this financial year and Indian banks will be allowed to become market makers in masala bonds including by underwriting.

India's wholesale inflation eased to a 4-month low of 4.53% in August from 5.09% in July, driven by cheaper food items, especially vegetables. India’s trade deficit narrowed in August to $17.39 billion from a five-year high or $18 billion in July.

OUTLOOK

News reports over the weekend said the new tariffs by the US on China could come at 10% instead of 25%, and that Beijing could decline to participate in the trade talks if Washington pushed ahead with the new tariffs.

Owing to this news, Hang Seng and Shanghai are down 1.1% and 0.7% respectively and SGX Nifty is suggesting about 35 points lower start for our market.

In Friday's report we had said that 34-DMA, placed around 11460, was the immediate hurdle above which 11603, the top made on 7th September, would be the upside target to eye.

Nifty soared 145 points to finish at 11515, taking out the 11460 hurdle, but is set to open below 11500 today.

11430-11380, the gap created by the gap up opening on Friday, is the immediate support zone to eye.

11523, the top made on Friday, is the immediate hurdle, above which 11603, as mentioned above, would be the next target to eye.

EQUITIES, RUPEE REBOUND SMARTLY; 11460 IS THE HURDLE FOR NIFTY

EQUITIES, RUPEE REBOUND SMARTLY; 11460 IS THE HURDLE FOR NIFTY

WORLD MARKETS

US indices gained 0.5%-0.8% as Apple rose and fears of rapidly rising inflation were tempered.

US consumer price index rose 0.2% last month, the expected figure being 0.3%.

After reports on Wednesday said the U.S. was seeking to restart trade negotiations with China, Trump, in a tweet yesterday said, that Washington was "under no pressure to make a deal with China, they are under pressure to make a deal with us." He added that the U.S. "will soon be taking in Billions in Tariffs & making products at home."

US oil fell 2.5% to $68.62 and Brent dipped 1.7% to $78.35 a barrel, suffering their largest single day percentage decline in almost a month, after The International Energy Agency warned that global economic risks were mounting.

Dollar index fell about 0.3% to 94.54, extending the losing streak to fourth straight day.

In Europe, FTSE and Italy fell 0.4% and 0.5% respectively while DAX was up 0.2%. the European Central Bank decided to kept its benchmark interest rates unchanged , which was widely expected.  The Bank of England (BoE) decided to hold interest rates, with all rate-setters voting unanimously to hold rates at 0.75%, as expected.

Turkish central bank increased its benchmark rate to 24%, a hike of 625 basis points from the previous rate of 17.75%. The Turkish lira rose sharply against the dollar following the decision.

AT HOME

After falling about a third of a percent in the first half, benchmark indices saw a sharp rebound later to end higher by about eight tenth of a percent, breaking two-day losing streak. Sensex settled at 37718, up 305 points while Nifty added 82 points to finish at 11370. BSE mid-cap index rose 0.5% but small-cap index fell 0.3%. BSE FMCG index soared 2.4%, becoming top gainer among the sectoral indices, followed by 1.5% higher Metal index. Telecom and Realty indices were the top losers, down 0.8% and 0.4% respectively.

FIIs net sold stocks and index futures worth Rs 1086 cr and 391 cr respectively but net bought stock futures worth Rs 382 cr. DIIs were net buyers to the tune of Rs 541 cr.

Rupee, after hitting a record low of 72.90/$, reversed to end at 72.1850/$, appreciating 50 paise compared to previous close. The recovery happened on news reports that PM Modi will be holding a meeting to discuss economic scenario as well as the rupee during the weekend.

CPI in the month of August eased to an 11-month low of 3.69% as compared to 4.17% in July owing to fall in food inflation.

Industrial production grew at 6.6% in July as compared to downwardly revised 6.8% from the provisional estimate of 7

OUTLOOK

Today morning, Nikkei and Hang Seng are up 0.7% and 0.2% respectively but Shanghai is down 0.3%. SGX Nifty is trading around 11485, suggesting about 70 points higher start when compared to Wednesday's close of Nifty futures.

In Wednesday's report we had said that "Having breached 11300 support, 11171-11160 is the next support zone to eye where 11171 is the top made in January and 11160 is the 50% retracement level of the 10557-11760 upmove".

Nifty, after touching a low of 11250, rebounded sharply to end at 11370 and is set to open above 11400 today.

34-DMA, placed around 11460, continues to be immediate hurdle to eye, a crossover of which is required for further upmove. 11603, the top made last Friday, would be the next upside target if that happens.

11250, the bottom made on Wednesday, is now the immediate support to eye.