19540 IS NEXT UPSIDE LEVEL TO EYE; 19250-19200 IS THE SUPPORT ZONE

 

19540 IS NEXT UPSIDE LEVEL TO EYE; 19250-19200 IS THE SUPPORT ZONE

 

WORLD MARKETS

 

Dow and S & P 500 gained 0.3% and 0.2% respectively while Nasdaq was little changed on Friday.

 

U.S. nonfarm payrolls grew by a seasonally adjusted 187,000 for August, above the estimate for 170,000. However, job numbers first reported for June and July were revised down. The unemployment rate came in at 3.8%, up significantly from 3.5% in July and reaching the highest since February 2022. Average hourly earnings increased 0.2% over the month and 4.3% y-o-y, missing respective forecasts of 0.3% and 4.4%. Other data showed that U.S. manufacturing contracted for a 10th straight month in August, but the pace of decline continued to slow.

 

U.S. 10-year treasury yield rose 7 bps to 4.18%. Dollar index rose 0.6% to 104.26. Gold ended flat at $1939 per ounce.

 

WTI crude rose 1% to $84.45 a barrel, while Brent crude was up 0.9% at $87.65 a barrel.

 

In Europe, FTSE rose 0.3% while DAX and CAC fell 0.7% and 0.3% respectively.

 

For the week, U.S. indices gained 1.4%-2.5%.

 

AT HOME

 

Benchmark indices surged 0.9% each, posting their biggest percentage gain since 30th June. Sensex added 555 points to settle at 65387 while Nifty finished at 19435, up 181 points. Nifty mid-cap and small-cap indices gained 0.8% and 1.2% respectively, extending the winning streak to fifth consecutive day and hitting fresh record high. Except 0.6% lower Healthcare and Pharma indices, all the NSE sectoral indices ended higher, with Metal index on the top, up 2.9%, followed by 1.6% higher Auto, PSU Bank and Oil & Gas indices.

 

FIIs net bought stocks, index futures and stock futures worth Rs 488 cr, 99 cr and 1752 cr respectively. DIIs were net buyers to the tune of Rs 2295 cr.

 

Rupee appreciated 7 paise to end at 82.71/$.

 

For the week, Sensex and Nifty gained 0.8% and 0.9% respectively, snapping a 5-week losing streak.

 

Eicher Motors August sales rose 11% y-o-y at 77583 units. Hero Motocorp sales rose 5.6% to 4.89 lk units.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.4%-2% and GIFT Nifty is suggesting around 40 points higher start for our market.

 

In Friday's report we had said that 19160 and 18934, the 61.8% and 78.6% retracement levels of the 18646-19991 up move seen since 26th June, were the next downside levels to eye while 19452, the top made Wednesday, continued to be immediate hurdle.

 

Nifty surged to touch a high of 19458 before closing at 19435.

 

34-DMA, placed around 19540, is the next upside level to eye for Nifty, upon crossover of which, 19645 and 19795, the tops made on 9th August and 1st August respectively, would be next upside targets; 19250-19200 is the support zone.

 

Banknifty faces tough resistance in 44850-44950 region, where 34-DMA as well as couple of tops made in recent past are placed. Once this resistance zone is taken out, 45300, followed by 15775, the 61.8% and 78.6% retracement level of the 46370-43600 fall, would be next upside levels to eye. On the way down, 43600, the bottom made in mid-August, is the support to eye.

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