16701 ABOVE 16600; 16376 CONTINUES TO BE IMMEDIATE SUPPORT

 

16701 ABOVE 16600; 16376 CONTINUES TO BE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices gained 0.6%-1.6% with Nasdaq leading the tally on news that U.S. regulators granted full approval for Pfizer-BioNTech’s Covid vaccine. Rebound in oil also aided sentiment.

 

IHS Markit's flash U.S. manufacturing PMI for August fell to 61.2 from July’s 63.4. Service-sector PMI dropped to 55.2, down from July’s reading of 59.9. Existing home sales increased by 2% month-on-month to 5.99 million in July, beating forecasts for a rise to 5.83 million.

 

US 10-year treasury yield were little changed at 1.257%. Dollar index fell 0.57% to 92.95. Spot gold jumped 1.3% to $1,803.29.

 

Oil prices surged to snap a seven-day losing streak. WTI gained $3.50, or 5.6%, to settle at $65.64 per barrel while Brent advanced 5.48%, or $3.57, to $68.75 per barrel.

 

European markets rose 0.3%-0.9%. IHS Markit’s flash composite PMI for the euro zone hit a two-month low of 59.5 in August versus 60.2 in July. UK's IHS Markit/CIPS flash composite PMI fell to 55.3 from 59.2 in July, its third consecutive monthly decline and lowest reading since February.

 

AT HOME

 

After a gap-up opening, Sensex and Nifty gave away more than half of the gains through the session to end higher by 0.4% and 0.3% respectively. Sensex settled at 55555, up 226 points while Nifty added 46 points to finish at 16496. Nifty mid-cap and small-cap indices tumbled 0.9% and 1.8% respectively to close at the lowest level since 1st July and 24th June respectively.

 

Basic Materials and Auto indices fell 1.5% and 1.3% respectively, becoming top losers among the sectoral indices while Teck and IT indices were the top gainers, up 1.3% and 1.2% respectively.

 

FIIs net sold stocks worth Rs 1363 cr but net bought index futures and stock futures worth Rs 310 cr and 2723 cr respectively. DIIs were net buyers to the tune of Rs 1452 cr.

 

Rupee appreciated 17 paise to end at 74.21/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.6%-1.4% and SGX Nifty is suggesting around 100 points higher start for our market.

 

In yesterday's report we had said that 16600 was the immediate hurdle on the hourly chart.

 

Nifty, after touching a high of 16592 in the initial trade, slipped to end at 16496 and is set to open near 16600 today.

 

16600 continues to be immediate hurdle on the hourly chart, upon crossover of which, 16701, the top made last week, would be the next upside level to eye; 16376, the low made Friday, continues to be immediate support, with the stop-loss of which, trading longs can be held on to.

 

34800, 34400 are supports for Banknifty; 35700 is the immediate resistance, above which, 36300 would be the bigger hurdle to eye.