NIFTY NEARS 10915 SUPPORT; 11140-11200 CONTINUES TO BE RESISTANCE ZONE

NIFTY NEARS 10915 SUPPORT; 11140-11200 CONTINUES TO BE RESISTANCE ZONE

WORLD MARKETS

US indices climbed 1.2%-1.5% after China said it wished to resolve its protracted trade dispute with the US with a “calm ” attitude.

When asked about its ongoing trade war with the U.S., China’s commerce ministry said that it was opposed to escalating trade tensions, hinting Chinese authorities will not retaliate against the latest round of U.S. tariffs.

Second-quarter U.S. GDP growth was revised down to 2% from 2.1%, which was in line with expectations.

Brent crude rose 51 cents to $61 a barrel while WTI was up 87 cents, or 1.7% to settle at $56.71 a barrel.

European markets rose 1%-1.9%. Data from six German states indicated that overall German inflation likely slowed in August from the prior month, sliding further below the ECB’s target.

AT HOME

Benchmark indices ended lower by a percent after a choppy expiry session, extending the losing streak to second consecutive day. Sensex lost 383 points to settle at 37068 while Nifty finished at 10948, down 98 points. BSE mid-cap and small-cap indices fell 0.2% and 0.6% respectively, outperforming main indices. BSE Bankex and Finance indices tumbled 1.9% and 1.7% respectively, becoming top losers among the sectoral indices while Healthcare and Metal indices were the top gainers, up 1.5% and 1.3% respectively.

FIIs net sold stocks and index futures worth Rs 987 cr and 1092 cr respectively but net bought stock futures worth Rs 475 cr. DIIs were net buyers to the tune of Rs 489 cr.

Rupee depreciated 3 paise to end at 71.80/$.

For the August derivative series, Nifty fell 2.7%.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.6%-1% but SGX Nifty is suggesting a marginally lower start for our market.

In yesterday's report we had reiterated the view that 11140-11200 continues to be immediate resistance zone while 10915 continues to be immediate support.

Nifty plunged to touch a low of 10922, from where it rebounded to close at 10948 and is set to open marginally lower today.

10915 continues to be immediate support, a breach of which will confirm a "Sell" on the hourly chart and would pave the way for further correction. 10830, followed by 10800, the 61.8% and 67% retracement levels of the recent 10637-11141 upmove, would be next downside targets/supports to eye if that happens.

11140-11200 continues to be resistance zone.