11695-11381 CONTINUES TO BE IMMEDIATE RANGE

11695-11381 CONTINUES TO BE IMMEDIATE RANGE

WORLD MARKETS

Nasdaq tumbled 1.1% while S & P 500 and Dow fell 0.5% and 0.3% respectively on Friday after reports that the White House is considering limits on U.S. investment into China.

Shares of Alibaba plunged 5.1% on the news. Other Chinese stocks like Baidu and JD.com also traded lower.

Data showed U.S. consumer spending slowed more than expected in August.

WTI crude futures fell 0.9% to $55.91 and brent crude futures dropped 1.4% to $61.89 after Iranian President Hassan Rouhani claimed that the U.S. offered to remove all sanctions on Iran in exchange for negotiations.

European markets gained 0.3%-1%. Eurozone economic sentiment came in at its weakest since February 2015, sinking from 103.1 in August to 101.7 in September. Consumer confidence in September improved slightly to -6.5 from -7.1 in August, while business climate measures declined to -0.22 in September from +0.12 in August.

For the week, US indices fell 0.4%-2.1% with Nasdaq leading the losses.

AT HOME

Sensex and Nifty fell 0.4% and 0.5% respectively, extending the consolidation within the highs and lows made earlier during the week. Sensex lost 167 points to settle at 38822 while Nifty finished at 11512, down 59 points. BSE mid-cap and small-cap indices fell 0.6% and 0.8% respectively. Except 1.1% and 0.1% higher Telecom and Energy indices respectively, all the BSE sectoral  indices ended in red with  Metal and Realty indices leading the losses down 2.8% and 2.6% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 214 cr, 260 cr and 1055 cr respectively. DIIs were net buyers to the tune of Rs 459 cr.

Rupee appreciated 32 paise to end at 70.56/$.

For the week, Sensex and Nifty climbed 2.1% each, extending the winning streak to third consecutive week.

OUTLOOK

Today morning, Asian markets are trading with cuts of upto 0.6% and SGX Nifty is suggesting a flattish start for our market.

For past couple of sessions we have been mentioning that 11695, the top made last Monday, is the immediate hurdle, a crossover of which is required for a fresh upmove while 11381, the lower end of the gap created by gap-up opening on Monday, is the immediate support.

Nifty has been consolidating within these levels for past four sessions and is set to open around Friday's close, 11512.

11695-11381 continues to be immediate range, a crossover of which, on either side, is required for a fresh move. Once 11695 is taken out, 11981, the top made in July, would be the next target to eye.

Meanwhile, trading longs can be held on to with the stop-loss of 11381.