AGR VERDICT IN FOCUS

 

WORLD MARKETS

 

Dow and S & P 500 fell 0.8% and 0.2% respectively while Nasdaq gained 0.7%. Apple rose 3.4% after 4-for-1 stock split.

 

Brent crude futures for November were unchanged at $45.81 per barrel, while WTI crude rose 8 cents to $43.05 a barrel.

 

European markets fell 0.6%-1.1%

 

On monthly basis, US indices rose for the fifth straight month. Dow rallied 7.6% for its biggest August gain since 1984. The S&P 500 rose 7%, clinching its best August since 1986. Nasdaq surged 9.6%, posting its best monthly performance since 2000.

 

AT HOME

 

After rising nearly 2% at the open, benchmark indices saw a big reversal through the session to end with cuts of more than 2%, snapping 6-day winning streak and suffering the worst fall in 3 months. Sensex settled at 38628, down 839 points while Nifty lost 260 points to finish at 11387. BSE mid-cap and small-cap indices plunged 3.8% and 4.4% respectively. All the BSE sectoral indices ended in red with Ralty and Healthcare indices leading the losses, down 4.7% and 4.6% respectively.

 

The sell-off happened after the government said the Chinese troops 'carried out provocative military movements in Eastern Ladakh to change the status quo' but they were blocked by Indian soldiers. The change in margin system and securities pledge-repledg system, that will kick start fron 1^st September, also dented the sentiment.

 

FIIs net sold stocks, index futures and stock futures worth Rs 3395 cr, 4068 cr and 1344 cr respectively. DIIs were net buyers to the tune of Rs 681 cr.

 

Rupee depreciated 22 paise to end at 73.61/$.

 

The Indian economy contracted by a record 23.9% in April-June 2021 quarter. In gross value added terms, the economy contracted 22.8%.

 

OUTLOOK

 

Today morning, Asian markets are trading with modest gains and SGX Nifty is suggesting around 30 points higher start for our market.

 

In yesterday's report we had said that 12012-12071, the gap created by gap-down opening on 24th February, was the next major target/resistance to eye and that immediate support on the hourly chart had moved up to 11500, with the stop-loss of which, trading longs should be held on to.

 

Nifty, after touching a high of 11794 in the initial trade, reversed and plunged all the way to 11325 before closing at 11387.

 

11325, the low made yesterday, also coincided with 20-DMA, and hence is the immediate support to eye. Below 11325, 34-DMA, placed around 11250, would be the next important support.

 

11550 is the immediate hurdle on the hourly chart above which, 11794, the top made yesterday, would be major hurdle.

 

The Supreme Court will pronounce its verdict on the AGR case at 11.30 am today. 

Auto companies will report August sales figures today.