10746 IS NEXT SUPPORT; 10990 IMMEDIATE HURDLE

10746 IS NEXT SUPPORT; 10990 IMMEDIATE HURDLE

WORLD MARKETS

US indices gained 0.1%-0.4%, waiting to hear from Federal Reserve, which kicked off a two-day monetary policy meeting.

Stocks briefly jumped after President Donald Trump said a U.S.-China trade deal could come soon.

Brent dropped 6.6% or $4.5, to $64.46 per barrel and WTI fell 5.7% or $3.56 to $59.3 after the Saudi energy minister said the country’s oil supply will be back online by the end of the month.

In Europe, CAC rose 0.2% while FTSE and DAX ended marginally in the red.

AT HOME

Sensex and Nifty nosedived 1.7% each to close at the lowest level since 22nd August and 3rd September respectively. Sensex settled at 36481, down 642 points while Nifty lost 185 points to finish at 10817. BSE mid-cap and small-cap indices tumbled 1.8% each. All the BSE sectoral indices ended in red with Auto and Realty indices leading the losses, down 3.8% and 3.7% respectively.

FIIs net sold stocks worth Rs 808 cr but net bought index futures and stock futures worth Rs 592 cr and 365 cr respectively. DIIs were net buyers to the tune of Rs 86 cr.

Rupee depreciated 19 paise to end at 71.78/$.

OUTLOOK

Today morning, Nikkei is little changed while Hang Seng and Shanghai are up about a fifth of a percent. SGX Nifty is suggesting about 50 points higher start for our market.

In yesterday's report we had said that "10945, the low made on Friday, continues to be the immediate support, upon breach of which, 10870, where a trendline adjoining recent bottoms on the daily chart is placed, would be the next support to eye".

Nifty broke 10945 support and plunged all the way to 10796 before closing at 10817.

10746, the low made on 4th September, is the next downside support to eye upon breach of which, 10637, the low made in August, would be the crucial support.

Immediate hurdle on the hourly chart is placed around 10990, with the stop-loss of which, trading shorts can be held on to.