11640 ABOVE 11560; 11325 CONTINUES TO BE IMMEDIATE SUPPORT

 

11640 ABOVE 11560; 11325 CONTINUES TO BE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices soared 1%-1.6%, with the Dow leading the gains, as defensive and value stocks rallied.

 

U.S. private payrolls increased last month from July, according to the ADP report, but fell short of forecast.

 

Brent crude fell $1.15, or 2.5%, to settle at $44.43 per barrel while WTI crude settled 2.9%, or $1.25, lower at $41.51 per barrel.

 

European markets climbed 1.4%-2.1%. German retail sales fell unexpectedly in July, by 0.9%, missing expectations for a 0.5% increase.

 

AT HOME

 

Sensex and Nifty rose 0.5% and 0.6% respectively, extending the winning streak to second consecutive day. Sensex settled at 39086, up 185 points while Nifty added 64 points to finish at 11535. BSE mid-cap and small-cap indices climbed 1.3% and 1.7% respectively. All the BSE sectoral indices ended higher with Energy and Industrials indices leading the tally, up 1.8% and 1.7% respectively.

 

FIIs net bought stocks worth Rs 991 cr but net sold index futures and stock futures worth Rs 820 cr and 608 cr respectively. DIIs were net sellers to the tune of Rs 657 cr.

 

Rupee depreciated 16 paise to end at 73.03/$.

 

OUTLOOK

 

China's August Caixin services PMI has come in at 54 Vs 54.1 in July. This was the fourth straight month of recovery.

Today morning, Nikkei and Shanghai are up 1% and 0.3% respectively while Hang Seng is little changed. SGX Nifty is suggesting around 20 points higher start for our market.

 

In yesterday’s reort we had said that 11553, the top made Tuesday, was the immediate hurdle to eye, upon crossover of which 11640, the 67% retracement level of the 11794-11325 fall, would be the next target/resistance. We had also said that 11325, the low made Monday, continued to be immediate support.

 

Nifty, after touching a low of 11430, rebounded to touch a high of 11554 and closed at 11535.

 

11560, the 50% retracement level of Monday’s 11794-11325 fall, which also coincides with the tops made on Tuesday and Wednesday, is the immediate hurdle to eye, upon crossover of which, 11640, the 67% retracement level of the aforementioned fall, would be the next target/resistance.

11325, the low made Monday, continues to be immediate support.