11140-11220 CONTINUES TO BE TARGET ZONE; 10900 IMMEDIATE SUPPORT

11140-11220 CONTINUES TO BE TARGET ZONE; 10900 IMMEDIATE SUPPORT

WORLD MARKETS

US indices rose 0.7%-1.1%, with the Dow rising for the sixth straight day, as shares of Apple surged.

Apple rose 3.2% after unveiling three new iPhones on Tuesday along with a new Apple Watch and a TV subscription service. Apple also showcased a gaming subscription called Apple Arcade.

On the data front, the U.S. producer price index rose 0.1% in August, as against expectation of it being unchanged.

Earlier, China moved to exempt 16 types of U.S. products from its additional retaliatory tariffs.

WTI crude fell 2.9% to $55.75 a barrel, while Brent fell 2.3% to $60.96 a barrel after Trump discussed easing sanctions on Iran in order to reopen negotiations.

Main European markets gained 0.4%-1%.

AT HOME

Benchmark indices rose three tenth of a percent, with Nifty extending the winning streak to fifth consecutive day. Sensex settled at 37270, up 125 points while Nifty added 32 points to finish at 11035. BSE mid-cap and small-cap indices soared 1% and 1.4% respectively. BSE Realty and Auto indices soared 4.4% and 3.5% respectively, becoming top gainers among the sectoral indices while IT and Teck indices were the top losers, down 1.3% and 1.2% respectively

FIIs net bought stocks, index futures and stock futures worth Rs 267 cr, 41 cr and 498 cr respectively. DIIs were net buyers to the tune of Rs 1132 cr.

Rupee appreciated 5 paise to end at 71.65/$.

Yes Bank soared on reports that co-founder Rana Kapoor is in talks with Paytm to sell his stake in the bank. Tata Motors jumped after company's retail sales in China recovered in the month of August.

OUTLOOK

U.S. President Trump tweeted couple of hours back that increased tariffs on 250 billion dollars worth of Chinese goods that were set to kick in on October 1 have now been delayed to October 15 “as a gesture of good will.”

Today morning, Asian markets are trading with gains of 0.3%-1% and SGX Nifty is suggesting about 20 points higher start for our market.

In yesterday's report we had said that 11140-11220 is the next target zone and had advised holding on to long positions with the stop-loss of 10885.

Nifty, after touching a high of 11054, closed at 11035 and is set to open higher today.

11140-11220 continues to be next target zone where 11141 and 11181 are the tops made on 27th August and 9th August respectively while 11220 is where 200-DMA is placed. Immediate support on the hourly chart has moved up to 10900, with the stop-loss of which, trading longs can be held on to.

IIP for July will be released today and is expected to show a growth of 2.26% as against growth of 2% registered in June. CPI for August too will be out and is expected to inch up to 3.28% from 3.15% in July.

The European Central Bank meets today to decide its latest monetary policy, with markets cautiously hopeful of a fresh stimulus package to boost the ailing euro zone economy.