10980 CONTINUES TO BE IMMEDIATE HURDLE; 10746 IMMEDIATE SUPPORT

10980 CONTINUES TO BE IMMEDIATE HURDLE; 10746 IMMEDIATE SUPPORT

WORLD MARKETS

US indices soared 1.3%-1.8% and treasury yield jumped after the U.S. and China agreed to meet next month in Washington to discuss trade and economic data came in better-than-expected.

Data from ADP and Moody's Analytics showed private payrolls in the U.S. increased by 195,000, beating expected figure of 140,000. The Institute for Supply Management said the U.S. services sector expanded at a faster-than-expected rate last month.

Brent crude gained 16 cents, or 0.2%, to $60.86 a barrel. WTI crude added 4 cents, or 0.1%, to $56.30 a barrel.

Gold slumped more than 2% and silver shed 4% on account of stronger-than-expected U.S. economic data and hopes of a thaw in the U.S.-China trade war.

European markets, except 0.6% lower FTSE, gained 0.8%-1.5%.

AT HOME

After a choppy session, Nifty ended little changed while Sensex lost a fifth of a percent. Sensex settled at 36644, down 80 points while Nifty finished at 10847, up 3 points. BSE mid-cap and small-cap indices gained 0.2% and 0.7% respectively. BSE Oil & Gas and Metal indices climbed 2.5% and 2.4% respectively, becoming top gainers among the sectoral indices while Realty and Finance indices were the top losers, down 1.8% and 1% respectively.

FIIs net sold stocks and index futures worth Rs 561 cr and 955 cr respectively but net bought stock futures worth Rs 232 cr. DIIs were net buyers to the tune of Rs 699 cr.

Rupee appreciated 27 paise to end at 71.84/$.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.1%-0.7% and SGX Nifty is suggesting about 20 points higher start for our market.

In yesterday's report we had said that immediate hurdle on the hourly chart was placed around 10980 while 10746, the low made Wednesday, was the immediate support below which 10637, the bottom made in August, would be the crucial support to eye.

Nifty, after touching a high of 10920, slipped to end at 10847 and is set to open modestly higher today.

10980 continues to be immediate hurdle, a crossover of which is required to generate a "buy" on the hourly chart. If that happens, 11140-11200 would be the next target zone.

10746, the low made Wednesday, continues to be immediate support upon breach of which, 10637, the bottom made in August, would be the crucial support to eye.