10790 CONTINUES TO BE IMPORTANT SUPPORT; 11225 IS THE IMMEDIATE HURDLE

 

10790 CONTINUES TO BE IMPORTANT SUPPORT; 11225 IS THE IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices rose 1.3%-2.3% on Friday, registering best day in two weeks, as tech shares gained.

 

Shares of Apple climbed 3.8% while Amazon and Facebook rose 2.5% and se 2.5% and 2.1% respectively.

 

Brent crude fell 7 cents to $41.87 a barrel, while WTI crude settled 6 cents, or 0.2%, lower at $40.25.

 

In Europe, FTSE rose 0.3% while DAX and CAC fell 1.1% and 0.7% respectively.

 

For the week, Dow and S & P 500 fell 1.8% and 0.6% respectively, extending the losing streak to fourth straight week. Nasdaq however snapped 3-week losing streak by rising 1.1%. WTI crude fell 2% for the week.

 

AT HOME

 

Benchmark indices soared 2.3% each, snapping 6-day losing streak and recouping three fourth of yesterday's losses. Sensex settled at 37388, up 835 points while Nifty added 244 points to finish at 11050. BSE mid-cap and small-cap indices rose 2.9% and 2.3% respectively. All the BSE sectoral indices ended in green with Telecom and Teck indices leading the tally, up 5.7% and 4% respectively. 47 out of 50 Nifty stocks ended higher with Bajaj Finserve and HCL Tech being the top gainers, up 6.6% and 5.3% respectively.

 

FIIs net sold stocks worth Rs 2080 cr but net bought index futures and stock futures worth Rs 1285 cr and 1538 cr respectively. DIIs were net buyers to the tune of Rs 2071 cr.

 

Rupee appreciated 28 paise to end at 73.61/$.

 

For the week, Sensex and Nifty fell 3.8% and 4% respectively, suffering the worst weekly fall in nearly 4-1/2 months.

 

OUTLOOK

 

Data over the weekend showed China's industrial profits rose 19.1% in August. Meanwhile, new daily coronavirus cases topped 1000 in New York State on Saturday for the first time since early July.

 

Today morning, Asian markets are trading with gains in the vicinity of half a percent and SGX Nifty is suggesting around 70 points higher start for our market.

 

In Friday's report we had said that 10790, the low made Thursday, which coincided with the 200-DMA, was the important immediate support to eye and that 11225 was the immediate resistance to eye.

 

Nifty, after touching a low of 10854, surged to touch a high of 11072 before closing at 11050. The benchmark is set to open above 11100 today.

 

11225 continues to be immediate hurdle.

 

10790, the low made last week, continues to be important support.