11945 ABOVE 11844; 11745 IS IMMEDIATE SUPPORT

11945 ABOVE 11844; 11745 IS IMMEDIATE SUPPORT

WORLD MARKETS

US indices gained 0.8%-1% with the S & P 500 hitting a record close, led by strong gains in tech and energy shares.

Energy stocks jumped tracking higher oil. US oil surged $2.89 or 5.4% to $56.65 and Brent climbed $2.79 or 4.5% to $64.61 a barrel after Iran shot down a U.S. military drone and Trump responded by saying that Iran made a very big mistake.

The yield on the 10-year Treasury fell below 2% for the first time since November 2016. It touched a low of 1.974% before ending the day around 2.02%.

European markets climbed 1.2%-2.5% reacting to interest rate decisions from the Bank of England and the Federal Reserve. The Bank of England held interest rates steady at 0.75% while cutting its growth forecast for Britain’s economy to zero in the second quarter of 2019, citing global trade tensions and the growing risk of a damaging no-deal Brexit.

AT HOME

Bulls made a grand comeback as benchmark indices soared a percent and fourth in today's trade, marking the biggest gain since 3rd June. Sensex settled at 39601, up 488 points while Nifty added 140 points to finish at 11831. BSE mid-cap and small-cap indices gained 1.6% and 1% respectively. All the BSE sectoral indices ended in green with Auto and Capital Goods indices leading the tally, up 2.5% and 2.4% respectively.

FIIs net sold stocks and index futures worth Rs 438 cr and 237 cr respectively but net bought stock futures worth Rs 1076 cr. DIIs were net buyers to the tune of Rs 1241 cr.

Rupee appreciated 24 paise to end at 69.44/$.

UPL shares plunged after HSBC Research raised concerns on declining soyabean demand, pricing pressure from the US-China trade tensions and the African swine fever (ASF).

OUTLOOK

Today morning, Nikkei is down 0.2% while Hang Seng and Shanghai are up 0.1% each. SGX Nifty is suggesting a flattish start for our market.

In yesterday's report we had mentioned that 11605-11591 was the immediate support zone while 11800-11850 is the resistance zone to eye.

Nifty, after touching a low of 11635, reversed to touch a high of 11843 before closing at 11831.

A crossover of 11844, the high made yesterday, would confirm a buy on the hourly chart and would pave the way for further upmove.

11945, the two-third retracement level of the recent 12103-11625 fall, is would be the next target to eye if that happens. Above 11945, 12103, the top made in early June, would be the next target to eye.

11745 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.