25200-25250 IS THE NEXT TARGET AREA; 24900-24850 IS THE SUPPORT ZONE

 

25200-25250 IS THE NEXT TARGET AREA; 24900-24850 IS THE SUPPORT ZONE

 

WORLD MARKETS

 

Dow rose 0.6% to a record, S & P 500 was flat while Nasdaq fell 0.2%.

 

Initial jobless claims fell to 231,000 from the prior week’s 232,000, but were slightly higher than the 230,000 expected by Dow Jones. In addition, the second-quarter GDP growth was revised higher to 3% from the initial 2.8% rate.

 

U.S. 10-year treasury yield rose 3 bps to 3.863%. Dollar index rose a third of a percent to 101.37. Gold rose two third of a percent to $2521 per ounce.

 

WTI crude futures rose 1.9% to $75.91 while Brent futures rose 1.6% to $79.94 per barrel.

 

European markets gained 0.2%-0.9%. Germany's headline annual inflation on an EU-harmonized basis eased more than expected to 2% in August as against expectation of 2.3%, and previous month’s 2.6% print. Spain’s preliminary harmonized inflation came in at 2.4% for August, down from July’s 2.9% reading and below 2.5% prediction.

 

AT HOME

 

Benchmark indices ended higher by four tenth of a percent after a choppy session on the expiry day of the August derivative series, with both Sensex and Nifty hitting fresh record highs. Sensex settled at 82134, up 349 points while Nifty added 100 points to finish at 25151. Nifty mid-cap and small-cap indices however fell 0.4% and 0.5% respectively. Nifty Oil & Gas and FMCG indices were the top gainers among the sectoral indices, up 0.9% and 0.7% respectively while Metal and Pharma indices were the top losers, down 0.5% each.

 

FIIs net bought stocks and index futures worth Rs 3260 cr and 2103 cr respectively but net sold stock futures worth Rs 3072 cr. DIIs were net buyers to the tune of Rs 2691 cr.

 

Rupee appreciated 8 paise to end at 83.87/$.

 

For the August derivative series, Nifty gained 3%.

 

OUTLOOK

 

Inflation rate in Japan’s capital city of Tokyo rose to 2.6% from June’s 2.2%, hitting its highest since March. The core inflation rate — which strips out prices of fresh food — rose 2.4%, higher than the 2.2% expected. Unemployment in Japan rose to 2.7%, more than the estimate of 2.5%. Retail sales in the country rose 2.6% -o-y, lower than the 2.9% growth expected.

 

Today morning, Asian markets are trading with gains of 0.4%-1.1% and GIFT Nifty is suggesting a marginally higher start for our market.

 

In yesterday's report we had said that 25200 was the next upside target to eye for Nifty while 24900-24850 was the immediate support zone, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a high of 25193, closed at 25151.

 

25200-25250 is the next target area, above which, 25350 would be next upside level to eye; 24900-24850 continues to be immediate support zone, with the stop-loss of which, trading longs could be held on to.

 

For Banknifty, 51500 and 51943, the 50% and 61.8% retracement levels of the entire 53357-49654 fall, are the next upside levels to eye; On the way down, 50900-50800 is the immediate support zone, with the stop-loss of which, trading longs can be held on to.

Investment in securities market is subject to market risk.

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