19600-19650 IS THE NEXT TARGET AREA; 19350 IS IMMEDIATE SUPPORT

 

19600-19650 IS THE NEXT TARGET AREA; 19350 IS IMMEDIATE SUPPORT

 

WORLD MARKETS

 

U.S. indices gained 0.5%-1.6% with S & P 500 posting its best daily performance since June 30, while Nasdaq Composite climbed for its third straight day of gains.

 

S&P Global said its flash U.S. Composite PMI fell to a reading of 50.4 in August from 52 in July, the biggest drop since November 2022.

 

U.S. 10-year treasury yield fell 13 bps to 4.192%. Dollar index fell 0.2% to 103.39. Gold jumped 1% to $1916 per ounce.

 

European markets rose 0.1%-0.7%. Eurozone composite PMI dropped to 47.0 in August from July’s 48.6, its lowest since November 2020. The services component sank to 48.3 from 50.9, its first time below the 50 mark that separates growth from contraction this year. The German composite figure fell to its lowest since May 2020 as a deepening downturn in manufacturing output was accompanied by a renewed contraction in services activity.

 

AT HOME

 

Sensex and Nifty rose a third and a quarter of a percent respectively to close at one-week high. Sensex settled at 65433, up 213 points while Nifty added 47 points to finish at 19444. Nifty mid-cap and small-cap indices gained 0.4% and 0.9% respectively, with the former hitting fresh record high. Nifty Bank and Financial Services indices were the top gainers among the sectoral indices, up 1.1% and 0.9% respectively while FMCG and Oil & Gas indices were the top losers, down 0.5% and 0.3% respectively.

 

 

FIIs net bought stocks, index futures and stock futures worth Rs 614 cr, 505 cr and 125 cr respectively. DIIs were net buyers to the tune of Rs 505 cr.

 

Rupee appreciated 25 paise to end at 82.69/$.

 

OUTLOOK

 

Nvidia reported earnings after-the-bell which beat estimates and issued optimistic guidance.

 

Today morning, Asian markets are trading with gains of 0.3%-1.1% and GIFT Nifty is suggesting around 80 points higher start for our market.

 

In yesterday's report we had reiterated resistance and support of 19550 and 19253 respectively.

 

Nifty surged to touch a high of 19472 before closing at 19444. The benchmark is set to open near 19500 today.

 

A crossover of 19472, the top made yesterday, would confirm a "Buy" on the hourly chart, after which, 19600-19650 would be next target area for Nifty; 19350 is the immediate support on the hourly chart, below which, 19253, the low made last week, would be important support to eye.

 

For Banknifty, 45000 is the next upside target; 44000 is the immediate support on hourly chart.

Investment in securities market is subject to market risk.

Please check https://www.prudentbroking.com/Disclaimert.aspx for detailed disclaimer.