11200 BELOW 11285; 11460 IS THE IMMEDIATE HURDLE

 

11200 BELOW 11285; 11460 IS THE IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices fell 0.3%-0.6%, reacting to the cautious outlook from the minutes of the latest Fed meeting.

 

In the minutes from its July meeting, the Fed said “the ongoing public health crisis would weigh heavily on economic activity, employment, and inflation in the near term and was posing considerable risks to the economic outlook over the medium term.”

 

Apple, however, made history by becoming the first U.S. company to reach a market cap of $2 trillion.

 

Meanwhile, President Trump on Tuesday said he has postponed trade talks with China and does not want to speak with China right now. White House Chief of Staff Mark Meadows later told reporters that there were no new high-level talks scheduled between Washington and Beijing.

 

Brent crude futures fell 13 cents to $45.33 a barrel, while WTI crude settled 4 cents higher at $42.93 per barrel.

 

European markets gained 0.6%-1.1%. U.K. inflation unexpectedly jumped to a four-month high in July at 1.0%, surpassing expectations of 0.6%.

 

AT HOME

 

After opening higher by nearly two third of a percent, benchmark indices gave away most of the gains through the session to end just modestly higher. However, this was the third straight day of gains and fresh highest close in more than five and a half months for both Sensex and Nifty. Sensex settled at 38614, up 86 points while Nifty added 23 points to finish at 11408. BSE mid-cap and small-cap indices rose 0.6% and 1.2% respectively. BSE Telecom and Realty indices gained 1.5% and 1.4% respectively, becoming top gainers among the sectoral indices while IT and FMCG indices were the top losers, down 0.5% and 0.4% respectively.

 

FIIs net bought stocks worth Rs 459 cr but net sold index futures and stock futures worth Rs 250 cr and 669 cr respectively. DIIs were net sellers to the tune of Rs 97 cr.

 

Rupee depreciated 6 paise to end at 74.82/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.4%-1.5% and SGX Nifty is suggesting around 130 points lower start for our market.

 

In yesterday's report we had said that 11536, the upper end of the gap created by gap-down opening on 28th February, was the next upside target while 11285 was the immediate support on the hourly chart with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a high of 11460, slipped to end at 11408 and is set to open near 11300 today.

 

11285 continues to be immediate support on the hourly chart, upon breach of which 11200, where a trendline adjoining recent bottoms on the daily chart is placed, would be the important support.

 

11460, the top made yesterday, would now act as immediate hurdle, upon crossover of which, 11536, the upper end of the gap created by gap-down opening on 28th February, would be the next target.

 

Meanwhile, trading longs should be cut if Nifty sustains below 11285.