11495 ABOVE 11390; 11189 IS IMMEDIATE SUPPORT

11495 ABOVE 11390; 11189 IS IMMEDIATE SUPPORT

WORLD MARKETS

US indices soared 1.1%-1.3%  after Trump said China and the U.S. reached the first phase of a substantial trade deal that delays tariff hikes that were set to kick in next week.

Trump said phase one of the trade deal will be written over the next three weeks. As part of this phase, China will purchase between $40 billion and $50 billion in U.S. agricultural products. Trump also said the deal includes agreements on foreign-exchange issues with China. In exchange, the U.S. agreed to hold off on tariff hikes that were set to take effect Tuesday.

Brent futures surged 2.4% to $60.51 a barrel while WTI futures settled 2.2% higher at $54.70 after Iranian officials said that two rockets had struck an Iranian tanker traveling through the Red Sea.

European markets gained 0.8%-2.9% with DAX on the top.

For the week, US indices gained 03.6%-0.9%. European markets soared 1.3%-4.2% with DAX on the top. Asian markets added 1.2%-2.4%.

AT HOME

Benchmark indices ended higher by six tenth of a percent after an extremely choppy session. Sensex settled at 38127, up 246 points while Nifty added 70 points to finish at 11305. BSE mid-cap and small-cap indices gained 0.2% and 0.4% respectively. BSE Metal and IT indices climbed 2.4% and 1.7% respectively, becoming top gainers among the sectoral indices while Oil & Gas and Energy indices were the top losers, down 0.4% each.

FIIs net bought stocks and index futures worth Rs 750 cr and 661 cr respectively but net sold stock futures worth Rs 681 cr. DIIs were net sellers to the tune of Rs 703 cr.

Rupee appreciated 5 paise to end at 71.02/$.

For the week, Sensex and Nifty gained 1.2% each.

Infosys met expectations in Q2 with revenue growth of 3.3% and margin improvement of 120 bps. It hiked FY20 revenue guidance to 9-10% band.

Industiral output contracted by 1.1% in August, the slowest pace of growth in more than 6 years. Capital goods, manufacturing, electricity and consumer durables output shrinks sharply.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.4%-0.8% but SGX Nifty is suggesting about 20 points lower start for our market.

In Friday's report we had said that "11322, the top made Wednesday, continues to be immediate hurdle, upon crossover of which, 11390, the 50% retracement level of the recent 11695-11090 fall, would be the next upside target to eye".

Nifty broke 11322 hurdle and went all the way to 11363 before closing at 11305 and is set to open below 11300 today.

11390, the 50% retracement level of the recent 11695-11090 fall, continues to be next upside target/hurdle to eye, upon crossover of which 11495, the 67% retracement level of this move, would be the next target to eye.

Meanwhile, 11189, the low made on Friday, would act as immediate support below which, 11090, the low made last week, would be important support to eye.