19645 ABOVE 19545; 19400-19350 IS THE SUPPORT ZONE

 

19645 ABOVE 19545; 19400-19350 IS THE SUPPORT ZONE

 

WORLD MARKETS

 

The US stock markets were closed yesterday on account of the Labor Day holiday.

 

European markets ended modestly lower. German trade data showed a 0.9% month-on-month fall in exports in July, while imports rose by 1.4%.

 

Brent crude futures for November rose 45 cents to $89.00 a barrel and WTI October futures rose 40 cents to $85.95.

 

AT HOME

 

Sensex and Nifty gained 0.4% and 0.5% respectively, extending Friday's big upmove and closing at the highest level after 10th August. Sensex settled at 65628, up 241 points while Nifty added 93 points to finish at 19528. Nifty mid-cap and small-cap indices surged 1% and 1.3% respectively, extending the winning streak to sixth consecutive day and hitting fresh record highs. Except 0.2% and 0.1% lower Consumer Durables and FMCG indices respectively, all the NSE sectoral indices ended higher, with PSU Bank and Metal indices being the top gainers, up 2.4% and 2.3% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 488 cr, 150 cr and 738 cr respectively. DIIs were net buyers to the tune of Rs 2295 cr.

 

Rupee depreciated 3 paise to end at 82.75/$.

 

OUTLOOK

 

China's August Caixin Services PMI has come in at 51.8 Vs 54.1 Month-on-Month.

 

Today morning, Asian markets are trading with cuts of 0.3%-1.2% and GIFT Nifty is suggesting a modestly lower start for our market.

 

In yesterday's report we had said that 34-DMA, placed around 19540, was the next upside levevl to eye for Nifty while 19250-19200 was the support zone.

 

Nifty, after touching a high of 19545, closed at 19528.

 

19545, the top made yesterday, coincided with 34-DMA as well as a trendline adjoining recent tops. Upon crossover of 19545, 19645, the top made on 9th August, would be next upside level to eye; 19400-19350 is the immediate support area, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty 44850-44950 continues to be immediate resistance zone, above which, 45300, followed by 45775, the 61.8% and 78.6% retracement level of the 46370-43600 fall, would be next upside levels to eye; On the way down, 43830, the bottom made last week, is the immediate support.

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