10945 CONTINUES TO BE IMMEDIATE SUPPORT

10945 CONTINUES TO BE IMMEDIATE SUPPORT

WORLD MARKETS

US indices fell 0.3%-0.5%, with the Dow breaking eight day winning streak, amid fears that a surge in oil prices following an attack in Saudi Arabia could slow down global economic growth.

Brent crude futures surged 19.5% to $71.95 per barrel at the open, the biggest jump on record before closing 14.6% up at $69.02. U.S. crude futures climbed as much as 15.5% to $63.34, the biggest climb since December 2008 and settled at $62.9, up $8.05 or 14.8%.

The attack was claimed by Yemen’s Houthi rebels and the Trump administration has blamed Iran. A Saudi-led military coalition said Monday the attack was carried out by “Iranian weapons” and did not originate from Yemen.

Earlier, data showed China’s industrial production fell to a new 17½-year low. Production rose 4.4% in August as against expectation of a gain of 5.2%.

European markets fell 0.6%-1%.

AT HOME

Benchmark indices tumbled seven tenth of a percent as crude oil shot up nearly 10% following weekend attacks on Saudi oil facilities. Sensex lost 261 points to settle at 37123 while Nifty finished at 11003, down 72 points. Broader indices however outperformed as BSE mid-cap index fell 0.2% while Small-cap index rose 0.6%. BSE Oil & Gas and Energy indices fell 1.6% and 1.3% respectively, becoming top losers among the sectoral indices while Consumer Durable and FMCG indices were the top gainers, up 1.2% and 0.6% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 751 cr, 1634 cr and 397 cr respectively. DIIs were net buyers to the tune of Rs 309 cr.

Rupee depreciated 67 paise to close at 71.59/$.

India's August WPI remained unchanged month-on-month at 1.08%.

OUTLOOK

Today morning, Nikkei is little changed while Hang Seng and Shanghai are off 0.7% and 0.2% respectively. SGX Nifty is suggesting about 20 points lower start for our market.

In yesterday's report we had said that 10945, the low made on Friday, was the immediate support.

Nifty, after touching a low of 10968, recovered to end at 11003 and is se to open lower today.

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.

11140-11120 continues to be resistance zone.