11111 BELOW 11300; 11585 IS IMMEDIATE HURDLE

 

11111 BELOW 11300; 11585 IS IMMEDIATE HURDLE

 

WORLD MARKETS

 

On Friday, after plunging 2-5% in the first half, US indices recouped nearly two-third of the losses in second half to end lower by 0.6%-1.3%. Names that would benefit from the economy reopening tried to offset another steep decline in tech.

 

US economy added 1.37 million jobs in August, topping an estimate of 1.32 million. The U.S. unemployment rate fell to 8.4% last month from 10.2% in July.

 

Brent crude settled $1.41, or 3.2%, lower at $42.66 per barrel while WTI crude fell $1.60, or 3.8%, to settle at $39.77 per barrel.

 

Main European markets fell 0.9%-1.6%.

 

For the week, S&P 500 and Nasdaq fell 2.3% and 3.3% respectively, snapping their five-week winning streaks. The Dow fell 1.8%. Main European markets saw weekly cuts of 0.8%-2.8%. In Asia, except 1.4% higher Nikkei, other markets fell 1.4%-3%.

 

WTI crude plunged 8% for its biggest weekly decline since June as concern around a slow economic recovery from the COVID-19 pandemic added to worries about weak oil demand.

 

AT HOME

 

Sensex and Nifty nosedived 1.6% each, extending the losing streak to second straight day and closing at the lowest level since 21st August, marking a 2-week low. Sensex settled at 38357, down 633 points while Nifty lost 193 points to finish at 11333. BSE mid-cap and small-cap indices slipped 1.7% and 1.1% respectively. All the BSE sectoral indices ended in red with Metal index leading the losses, down 3%, followed by 2.6% lower Power and Telecom indices. Except 1.8% higher Maruti, all the Nifty stocks ended in red with Tata Steel and Axis Bank being the top losers, down 4% and 3.8% respectively. BSE advance-decline ratio stood at 1:1.7.

 

FIIs net sold stocks, index futures and stock futures worth Rs 1889 cr, 696 cr and 603 cr respectively. DIIs were net sellers to the tune of Rs 457 cr.

 

Rupee appreciated 33 paise to close at 73.13/$.

 

For the week, Sensex and Nifty fell 2.8% and 2.7% respectively.

 

OUTLOOK

 

Today morning, Asian markets are trading flat to modestly higher and SGX Nifty is suggesting around 30 points lower start for our market.

 

In Friday's report we had said that 11325, the bottom made on Monday, continued to be important immediate support.

 

Nifty plunged to touch a low of 11303 before closing at 11333 and is set to open near 11300 today.

 

11303, the low made Friday, also coincided with the 34-DMA and hence is the important immediate support to eye. IF 11300 breaks, 11111, the bottom made on 14th August, would be the next support.

 

11585, the top made on Thursday, would work as immediate hurdle.