11695-11381 CONTINUES TO BE IMMEDIATE RANGE

11695-11381 CONTINUES TO BE IMMEDIATE RANGE

WORLD MARKETS

US indices fell 0.2%-0.6% as markets monitored the latest trade developments and assessed a whistleblower complaint against President Donald Trump that was released.

Media reports suggested that the U.S. is unlikely to extend a temporary waiver that allows U.S. companies to sell supplies to Huawei, a Chinese telecommunications giant. On the flip side, China’s foreign Minister Wang Yi said the U.S. has shown good will by waiving tariffs and China is willing to buy more American products.

The U.S. House Intelligence Committee released a declassified version of a whistleblower report alleging Trump used his office to solicit interference in the 2020 presidential election from a foreign country.

Brent crude futures rose 40 cents, or 0.6%, to $62.79 a barrel while WTI crude settled down 8 cents, or 0.1%, to $56.41 a barrel.

European markets gained 0.4%-0.8%. German Gfk consumer confidence survey rose for the first time in 2019 to come in at 9.9 for October following a reading of 9.7 for September.

AT HOME

Sensex and Nifty soared 1% and 1.2% respectively, nearly recouping losses suffered in yesterday's session. Sensex settled at 38989, up 396 points while Nifty added 133 points to finish at 11573. BSE mid-cap and small-cap indices rose 0.9% and 0.4% respectively. Except 0.6% and 0.3% lower IT and Teck indices respectively, all the BSE sectoral indices ended in green with Metal index leading the tally, up 4.2%, followed by 2.7% higher Realty index.

FIIs net bought stocks, index futures and stock futures worth Rs 737 cr, 1080 cr and 264 cr respectively. DIIs were net buyers to the tune of Rs 339 cr.

Rupee appreciated 15 paise to end at 70.88/$.

For the September derivative series, Nifty surged 5.7%.

OUTLOOK

Today morning, Nikkei and Hang Seng are down 0.9% and 0.2% respectively while Shanghai is little changed. SGX Nifty is suggesting about 30 points lower start for our market.

In yesterday's report we had reiterated the view that 11381, the lower end of the gap created by Monday's gap-up opening, continued to be immediate support while 11695, the top made on Monday, continued to be immediate hurdle.

Nifty surged to touch a high of 11610 before closing at 11573 and is set to open around 11550 today.

11695, the top made Monday, continues to be immediate hurdle, a crossover of which is required for a fresh upmove. If that happens, 11981, the top made in July, would be the next upside target.

11381, the lower end of the gap created by Monday's gap-up opening, continues to be immediate support.