11532 IS THE NEXT SUPPORT; 11700 IMMEDIATE HURDLE

11532 IS THE NEXT SUPPORT; 11700 IMMEDIATE HURDLE

WORLD MARKETS

US markets were shut yesterday for Labor Day.

In Europe, DAX fell 0.1% while FTSE, CAC and Italy gained 1%, 0.1% and 0.6% respectively.

Earlier, data showed China's August Caixin/Markit Purchasing Manager's Index (PMI) came in at 50.6, its lowest level since June 2017, as export sales fell for the fifth consecutive month.

Indonesia's rupiah fell to its weakest level in more than 20 years. Country's central bank reportedly said it would intervene in foreign exchange and bond markets.

AT HOME

Benchmark indices tumbled nearly eight tenth of a percent, registering biggest single day fall in a month. Sensex slipped 332 points to settle at 38312 while Nifty finished at 11582, down 98 points. BSE mid-cap and small-cap indices fell 0.4% and 0.2% respectively. BSE FMCG index fell 2.1%, becoming top loser among the sectoral indices, followed by 1.2% lower Realty, Power, Utilities and Bankex indices. Telecom and Consumer Durable indices were the top gainers, up 0.5% and 0.4% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 21 cr, 393 cr and 673 cr respectively. DIIs were net sellers to the tune of Rs 542 cr.

Rupee depreciated 22 paise to end at 71.21/$.

India's Nikkei manufacturing PMI fell to 51.7 in August from 52.3 in July.

OUTLOOK

Today morning, Shanghai is marginally higher while Hang Seng and Nikkei are trading with modest cuts. SGX Nifty is suggesting a marginally lower start for our market.

In yesterday's report we had said that 11620, where the rising trendline adjoining recent bottoms on the daily chart was placed, was the immediate support below which 11532, the bottom made on 24th August, would be the next support.

Nifty yesterday plunged 98 points to settle at 11582, breaking 11620 support decisively.

11532, the bottom made on 24th August, which also coincides with 20-DMA, is the next support to eye. Below 11532, 11500-11486 gap, created by a gap up opening on 20th August, would be the next support to eye.

11700 is the immediate hurdle on the hourly chart above which 11760, the top made last week, would be the bigger hurdle to eye.

Traders are advised to hold short positions with the stop-loss of 11700.