11285-11460 CONTINUES TO BE IMMEDIATE RANGE

 

11285-11460 CONTINUES TO BE IMMEDIATE RANGE

 

WORLD MARKETS

 

US indices gained 0.3%-0.7% on Friday on the back of strong economic data. Both S & P 500 and Nasdaq made new record closing highs.

 

Data from IHS Markit showed U.S. manufacturing activity hit its highest level in 19 months in August, while services were at their highest level in 17 months. Existing-home sales for July saw a record month-over-month spike of 24.7%.

 

Brent crude futures fell 84 cents, or 1.9%, to $44.06 a barrel while WTI futures settled 48 cents, or 1.12%, lower at $42.34 per barrel.

 

European markets fell 0.2%-0.5% as economic data disappointed. Eurozone composite PMI fell to 51.6 from July’s 54.9, considerably below market expectations. U.K. August composite PMI came in at 60.3, outstripping expectations of 57.1 and a marked improvement from July’s 57.0.

 

For the week, Nasdaq climbed 2.5%, S & P 500 rose 0.7% while Dow ended flat.

 

AT HOME

 

After opening with a gap of nearly a percent, benchmark indices gave away nearly half of the gains through the session to end higher by nearly half a percent. Sensex settled at 38434, up 214 points while Nifty added 59 points to finish at 11371. BSE mid-cap and small-cap indices gained 0.6% and 1.4% respectively. BSE Power and Utilities indices climbed 2.8% and 2.6% respectively, becoming top gainers among the sectoral indices while Telecom and Energy indices were the top losers, down 0.8% and 0.6% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 410 cr, 1236 cr and 315 cr respectively. DIIs were net sellers to the tune of Rs 251 cr.

 

Rupee appreciated 18 paise to close at 74.84/$.

 

For the week, Sensex and Nifty gained 1.5% and 1.7%.

 

OUTLOOK

 

Today morning, Hang Seng and Nikkei are up 1.4% and 0.4% respectively while Shanghai is off 0.3%. SGX Nifty is suggesting around 40 points higher start for our market.

 

In Friday's report we had said that 11285 continued to be immediate support, while 11460, the top made on Wednesday, continued to be immediate hurdle.

 

Nifty, after touching a high of 11418 in the initial trade, slipped to end at 11371 and is set to open near 11400 today.

 

11460, the top made last week, continues to be 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/resistance.

 

11285 continues to be immediate support, with the stop-loss of which, trading longs can be held on to.