NIFTY RETREATS FROM THE VICINITY OF 11593 HURDLE; 11350 CONTINUES TO BE IMMEDIATE SUPPORT

 

NIFTY RETREATS FROM THE VICINITY OF 11593 HURDLE; 11350 CONTINUES TO BE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Dow and S & P 500 rose 1.2% each while Nasdaq climbed 1.9% on the back of rebound in major tech stocks and positive news on the vaccine front.

 

AstraZeneca resumed its phase three trial of coronavirus vaccine in the United Kingdom and Pfizer said the company should be able to present key data from its trial to regulators by the end of October.

 

Tech stocks rose following Nvidia’s move to buy Arm Holdings from Softbank for roughly $40 billion.

 

Brent crude fell 35 cents, or 0.9%, to $39.48 a barrel while WTI futures settled 7 cents, or 0.2%, lower at $37.26 per barrel.

 

Dollar index fell 0.4%. Spot Gold rose 0.9% to $1960 per ounce.

 

In Europe, FTSE and DAX ended marginally lower while CAC rose 0.4%. Euro zone industrial production grew by 4.1% month-on-month in July.

 

AT HOME

 

After rising nearly a percent in the morning, benchmark indices nosedived in noon trade to end lower by about three tenth of a percent. Sensex settled at 38756, down 97 points while Nifty lost 43 points to finish at 11421. BSE mid-cap and small-cap indices however climbed 1.6% and 4% respectively.  BSE IT and Realty indices soared 4.8% and 3.8% respectively, becoming top gainers among the sectoral indices while Telecom index and Bankex were the top losers, down 2.1% and 1.6% respectively.

 

FIIs net bought stocks and stock futures worth Rs 298 cr and 100 cr respectively but net sold index futures worth Rs 829 cr. DIIs were net sellers to the tune of Rs 120 cr.

 

Rupee appreciated 6 paise to close at 73.47/$.

 

India's August CPI inflation came in at 6.69% Vs 6.73% in July. Core inflation stood at 5.8% Vs 5.7%.

 

OUTLOOK

 

Today morning, Hang Seng is marginally higher while Shanghai and Nikkei are off 0.2% and 0.8% respectively. SGX Nifty is suggesting around 20 points higher start for our market.

 

In yesterday's report we had said that 11493, the top made on Friday, was the immediate hurdle to eye, upon crossover of which, 11593, the 67% retracement level of recent 11794-11185 fall, would be the next target.

 

Nifty opened above 11493 hurdle and touched a high of 11568 but reversed from there to end at 11421.

 

11593 continues to be upside target/resistance to eye.

 

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