11794 ABOVE 11593; 11350 CONTINUES TO BE IMMEDIATE SUPPORT

 

11794 ABOVE 11593; 11350 CONTINUES TO BE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Nasdaq surged 1.2%, S & P 500 rose 0.5% while Dow ended flat, as tech stocks extended gains while bank stocks fell.

 

Apple announced new devices and services, including a new Apple Watch and two new iPad models. The stock however ended off the day’s high.

 

FedEx and Adobe rose 9% and 2% respectively in extended trading following better-than-expected earnings.

 

Brent crude rose 92 cents, or 2.3%, to $40.53 a barrel, while WTI crude futures gained $1.02, or 2.7%, to settle at $38.28 per barrel.

 

European markets gained 0.2%-1.3%. Germany’s ZEW survey of economic conditions exceeded expectations in September.

 

Earlier, data from China showed retail sales rose 0.5% in August from a year ago — the first positive report for the year so far. For the first eight months of the year, retail sales were down 8.6%. Industrial production grew 5.6% in August while fixed-asset investment declined 0.3% for the first eight months of the year.

 

AT HOME

 

Benchmark indices gained seven tenth of a percent to close at near two-week high. Sensex settled at 39044, up 287 points while Nifty added 81 points to finish at 11521. Nifty mid-cap and small-cap indices gained 1.1% and 1.5% respectively, extending the winning streak to fourth straight day and closing at the highest level in nearly seven months. Except 0.6% lower Realty index, all the BSE sectoral indices ended in green with Telecom and Healthcare indices leading the tally, up 1.9% each

 

FIIs net bought stocks and index futures worth Rs 1171 cr and 84 cr respectively but net sold stock futures worth Rs 301 cr. DIIs were net sellers to the tune of Rs 896 cr.

 

Rupee depreciated 17 paise to end at 73.64/$.

 

OUTLOOK

 

Japan's exports in August fell 14.8% y-o-y. That compared against a 16.1% drop expected.

 

Today morning, Asian markets are trading mixed with modest changes and SGX Nifty is suggesting a marginally lower start for our market.

 

In yesterday's report we had said that 11593 continued to be upside target/resistance to eye while 11350 continued to be immediate support on the hourly chart, with the stop-loss of which, trading longs should be held on to.

 

Nifty rose to close at 11521.

 

11593, the 67% retracement level of recent 11794-11185 fall, continues to be upside target/resistance to eye. Once 11593 is taken out, 11794, the top made on 31st August, would be the next major target.

 

11350 continues to be immediate support on the hourly chart, with the stop-loss of which, trading longs should be held on to.

 

Fed, at the end of its 2-day policy meeting today, is widely expected to maintain is downbeat stance on the economy. The Federal Open Market Committee will provide its quarterly update on its estimates for GDP, unemployment and inflation.