11345 CONTINUES TO BE UPSIDE LEVEL TO EYE; 11075 CONTINUES TO BE IMMEDIATE SUPPORT

 

11345 CONTINUES TO BE UPSIDE LEVEL TO EYE; 11075 CONTINUES TO BE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Dow and S & P 500 fell 0.5% each while Nasdaq eased 0.3% to snap three-day winning streak as virus resurgence dampened market sentiment. Markets also looked forward to the first U.S. presidential debate between Democrat Joe Biden and Republican Donald Trump later on Tuesday.

 

New York City Mayor said the city’s daily positive rate of coronavirus tests is back above 3% for the first time in months.

 

Brent futures for November delivery fell $1.60, or 3.8%, to $40.83 a barrel, while WTI crude fell $1.31, or 3.2%, to settle at $39.29 per barrel.

 

European markets fell 0.2%-0.5%. Final euro zone economic sentiment rose to 91.1 in September from 87.5 in August, while sentiment in the U.K. rose to 83.0 from 75.1.

 

After the US markets closed, Regeneron said its REGN-COV2 drug reduced viral levels and improved symptoms in non-hospitalized coronavirus patients.

 

AT HOME

 

After rising more than half a percent at the open, benchmark indices gave away all the gains through the session to end little changed. Sensex settled at 37973, down 8 points while Nifty lost 5 points to finish at 11222. BSE mid-cap index fell 0.2% while small-cap index closed flat. BSE Consumer Durables and Metal indices rose 2% and 1.8% respectively, becoming top gainers among the sectoral indices while Telecom index fell 2.1%, becoming top loser, followed by 1.5% lower Utilities index.

 

FIIs net sold stocks and index futures worth Rs 1457 cr and 644 cr respectively but net bought stock futures worth Rs 133 cr. DIIs were net buyers to the tune of Rs 576 cr.

 

Rupee depreciated 8 paise to end at 73.85/$.

 

OUTLOOK

 

China's September services PMI has come in at 55.9, up from 55.2 in August. Manufacturing PMI has improved to 51.5 from 51, the expected figure being 51.2.

 

Today Hang Seng and Shanghai are up 0.9% and 0.3% respectively while Nikkei is off 0.3%. SGX Nifty is suggesting around 30 points higher start for our market.

 

In yesterday's report we had said that 11345, the 67% retracement level of the recent 11618-10790 fall, which also coincided with the 20-DMA, was the next upside target/resistance to eye and that immediate support on the hourly chart was placed at 11075, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a high of 11305 in the initial trade, slipped to end at 11222.

 

11345, the 67% retracement level of the recent 11618-10790 fall, continues to be upside target/resistance to eye.

 

11075 continues to be immediate support on the hourly chart was placed at 11075, with the stop-loss of which, trading longs could be held on to.