NIFTY REBOUNDS FROM 11285 SUPPORT; 11460 CONTINUES TO BE IMMEDIATE HURDLE

 

NIFTY REBOUNDS FROM 11285 SUPPORT; 11460 CONTINUES TO BE IMMEDIATE HURDLE

 

WORLD MARKETS

 

After opening in red, US indices saw a sustained northward move through the session to end with gains of 0.2%-1.1% as gains in heavyweight tech stocks outweighed weaker-than-expected jobs data.

 

Initial weekly jobless claims came in above 1 million, surpassing estimate of 923,000. Continuing claims— those receiving unemployment benefits for at least two straight weeks — decreased by more than 600,000.

 

Meanwhile,  Chinese commerce ministry announced that Washington and Beijing will be back around the negotiating table in the coming days.

 

Brent crude fell $1.24, or 2.7%, to $44.13 a barrel, while WTI settled 35 cents, or 0.8%, lower at $42.58 per barrel.

 

European markets fell 1.1%-1.6%

 

AT HOME

 

Sensex and Nifty slipped 1% and 0.8% respectively, snapping 3-day rising streak. Sensex lost 394 points to settle at 38220 while Nifty finished at 11312, down 96 points. Nifty mid-cap and small-cap indices however climbed 0.8% and 0.7% respectively to extend their winning streak to fourth straight day and closing at the highest level since 3rd March. BSE Utilities and Power indices surged 4.2% and 4.1% respectively, becoming top gainers among the sectoral indices while Telecom index and Bankex were the top losers, down 1.8% and 1.4% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 268 cr, 1697 cr and 965 cr respectively. DIIs were net sellers to the tune of Rs 672 cr.

 

Rupee depreciated 20 paise to end at 75.02/$.

 

Divi's Lab and SBI Lfe will replace Bharti Infratel and Zee Entertainment in Nifty effective September 25.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.3%-0.8%. SGX Nifty is suggesting around 75 points higher start for our market.

 

In yesterday's report we had said that 11285 continued to be immediate support on the hourly chart.

 

Nifty, after touching  a low of 11289, closed at 11312 and is set to open near 11400 today.

 

11285 continues to be immediate support, upon breach of which, an upward sloping trendline adjoining recent bottoms on the daily chart, would land the support around 11225.

 

11460, the top made on Wednesday, continues to be immediate hurdle.

 

Meanwhile, continue to hold trading longs with the stop-loss of 11285.