18115 ABOVE 17992; 17690-17650 IS THE SUPPORT AREA

 

18115 ABOVE 17992; 17690-17650 IS THE SUPPORT AREA

 

WORLD MARKETS

 

US indices climbed 1.2%-2.1% on Friday, extending the winning streak to third consecutive day.

 

US 10-year treasury yield was little changed at 3.314%. Dollar index fell 0.6% to 108.97. Spot gold rose 0.5% to $1,716.30 per ounce.

 

Brent crude rose $3.30, or 3.7%, to $92.45 a barrel and WTI crude rose $3.11, or 3.7%, to $86.65 a barrel.

 

European markets gained 1.2%-1.9%.

 

For the week, US indices gained 2.7%-4.1%, snapping a 3-week losing streak. Dollar index fell 0.6%, snapping 3-week winning streak. Gold rose 0.3% for its first weekly rise in four. Oil fell 1.2%.

 

AT HOME

 

After opening higher by seven tenth of a percent, benchmark indices gave away most of the gains to end modestly higher. Sensex settled at 59793, up 105 points while Nifty added 34 points to finish at 17833. Nifty mid-cap and small-cap indices gained 0.4% and 0.1% respectively. BSE IT and Teck indices climbed 2.1% and 1.6% respectively, becoming top gainers among the sectoral indices while Telecom and Utilities indices were the top losers, down 0.7% and 0.6% respectively.

 

FIIs net bought stocks worth Rs 2132 cr but net sold index futures and stock futures worth Rs 125 cr and 246 cr respectively. DIIs were net sellers to the tune of Rs 1168 cr.

 

Rupee appreciated 13 paise to end at 79.58/$.

 

For the week, Sensex and Nifty gained 1.7% each, snapping a 2-week losing streak.

 

OUTLOOK

 

Chinese and Hong Kong market are shut today while Nikkei is up more than a percent. SGX Nifty is suggesting a flat to marginally lower start for our market.

 

In Friday's report we had said that 17992, the top made in August, was the next upside level to eye while 17484, the low made Tuesday, would act as immediate support, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a high of 17925, slipped to end at 17833.

 

17992, the top made in August, continues to be immediate hurdle to eye, upon crossover of which, 18115, the tops made in April, would be next upside levels to eye; On the way down, 17690-17650, the gap created by Thursday’s gap-up opening, would be immediate support area, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 40900 followed by 41800 are upside levels to eye; 39700 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.