10200 IS THE NEXT UPSIDE TARGET; 10900 IMMEDIATE SUPPORT

10200 IS THE NEXT UPSIDE TARGET; 10900 IMMEDIATE SUPPORT

WORLD MARKETS

US indices gained 1%-1.3% after President Trump said China had called U.S. trade negotiators to resume talks.

Speaking to reporters at the Group of Seven (G-7) meeting in France yesterday, Trump said China had expressed a desire to resume discussions over a potential trade deal and the two countries would start talking very seriously.

Brent crude fell 54 cents to $58.80 a barrel while WTI crude futures fell 53 cents, or 1%, to settle at $53.64 a barrel.

European markets rose 0.3%-1%. Munich’s Ifo Institute said that German business morale fell in August, with its business climate index coming in at 94.3, versus an expected 95.1.

AT HOME

Benchmark indices soared more than 2%, registering biggest single day gain since 20th May. Sensex settled at 37494, up 793 points while Nifty added 228 points to finish at 11057. BSE mid-cap and small-cap indices rose 1.6% each. Except a 1.1% lower Metal index, all the BSE sectoral indices ended in green with Finance index and Bankex leading the tally, up 3.9% and 3.6% respectively.

FIIs net sold stocks worth Rs 753 cr but net bought index futures and stock futures worth Rs 622 cr and 743 cr respectively. DIIs were net buyers to the tune of Rs 1272 cr.

Rupee depreciated 36 paise to end at 72.02/$.

RBI yesterday declared a record high dividend of Rs 1.2 lakh cr to government for this financial year. RBI Board also accepted the Jalan Panel's report on its capital reserves and decided to do a one-time transfer just over Rs 52000 cr from its contingency reserves.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.1%-1.1% and SGX Nifty is suggesting about 30 points higher start for our market.

In yesterday's report we had said that immediate resistance on hourly chart was placed around 10975, upon crossover of which, 200-DMA, placed around 11200 would be the next target.

Nifty, after first hour volatility, crossed 10975 hurdle decisively and touched a high of 11070 before closing at 11057 and is set to open higher today.

11200 continues to be next upside target as well as hurdle to eye, where 200 as well as 34-DMAs are placed.

Immediate support on the hourly chart is placed around 10900, with the stop-loss of which, trading longs can be held on to.