9988 CONTINUES TO BE IMMEDIATE HURDLE; 9840 IMMEDIATE SUPPORT

9988 CONTINUES TO BE IMMEDIATE HURDLE; 9840 IMMEDIATE SUPPORT

WORLD MARKETS                             

US indices plunged 0.8%-1.1% on geopolitical worries related to North Korea.

In an emergency UN meeting held on Monday, US urged the 15-member Security Council to respond with the "strongest  possible measures" against North Korea.

A North Korean diplomat threatened that the country was prepared to deliver "gift packages" to the U.S. if the latter continues to put pressure on it. South Korea has said further missile tests could be expected from North Korea following its last nuclear test on Sunday.

Also, Trump yesterday tweeted that he would be letting Japan and South Korea purchase a "substantially increased amount" of military equipment from the U.S. Meanwhile, Russian President Vladimir Putin cautioned over increasing "military hysteria" in reaction to developments in the region.

Gold rose 1.1% to $1,344.50 per ounce, around a one-year high. The yen gained 0.9% against the dollar to 108.82. US 10-year treasury yield stood at 2.06%, its lowest since November.

European markets, except a 0.2% higher DAX, fell 0.2%-0.6%

AT HOME

Benchmark indices ended higher by four tenth of a percent after a choppy session. Sensex added 107 points to settle at 31810 while Nifty finished at 9952, up 39 points. BSE mid-cap and small-cap indices climbed 0.6% and 1% respectively. Except a 1.6% lower Telecom index, all the BSE sectoral indices ended in green with Consumer Durable and Realty indices leading the tally, up 2.3% and 1.6% respectively.

Bharti Airtel plunged 2.5% on reports that the Telecom Regulatory Authority of India (TRAI) might soon release guidelines to phase out Interconnection Usage Charge (IUC), the charge companies pay their peers for using their network to complete calls and/or other services.

FIIs net sold stocks worth Rs 379 cr but net bought index futures and stock futures worth Rs 80 cr and 33 cr respectively. DIIs were net buyers to the tune of Rs 474 cr.

Rupee depreciated 7 paise to end at 64.12/$.

The government yesterday said that names of over 2.09 lakh firms have been struck off from register of companies for failing to comply with regulatory requirements and action has been initiated to restrict operations of their bank accounts.

India's Nikkei/IHS Markit Services PMI for August rose to 47.5, up from July's 45.9 but still below the 50 mark that separates expansion from contraction. A composite PMI, which takes into account both manufacturing and services activity, was up from July's 46.0 but remained in contraction territory at 49.0

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.2%-0.4% and SGX Nifty is suggesting about 30 points lower start for our market.

Yesterday, after touching a high of 9963, Nifty closed at 9952, a gain of 39 points compared to previous daily close. 9988, the top made on Monday, continues to be immediate hurdle above which 10138, the top made in August, would be the next major hurdle to eye.

Trendline adjoining recent bottoms on the daily chart has now moved up to 9840, which makes it immediate support below which 9685, the bottom made in August, would be the crucial support to eye.

9830 NEXT SUPPORT; 9988 IMMEDIATE HURDLE

9830 NEXT SUPPORT; 9988 IMMEDIATE HURDLE

WORLD MARKETS                             

US markets were shut yesterday for Labor Day.

European markets fell 0.3%-0.8% after North Korea conducted its sixth and most powerful nuclear test to date on Sunday.

In response, South Korea carried out a live-fire exercise simulating an attack on North Korea. It came as U.S. Defense Secretary James Mattis warned that any threat from North Korea towards the U.S. or its allies would be met with a "massive military response."

The Japanese yen, gold, spot silver and sovereign bonds rose on safe haven buying. Gold climbed to a high of $1337 an ounce, it's highest in almost a year.

AT HOME

After falling more than a percent in the morning session on the back of geopolitical worries, benchmark indices recouped nearly half of the losses in the noon trade to end lower by six tenth of a percent. Sensex lost 190 points to settle at 31702 while Nifty finished at 9913, down 62 points. BSE mid-cap and small-cap indices fell 0.7% each.

Except a 0.3% higher Metal index, all the BSE sectoral indices ended in red with Realty and Telecom indices leading the losses, down 1.4% and 1.3% respectively.

FIIs net sold stocks and index futures worth Rs 874 cr and 470 cr respectively but net bought stock futures worth Rs 214 cr. DIIs were net sellers to the tune of Rs 49 cr.

Rupee depreciated 2 paise to end at 64.05/$.

The Brics declaration bracketed Pakistan-based Lashkar-e-Taiba and Jaish-e-Mohammed with global terror groups Islamic State and al-Qaeda, marking a significant diplomatic win in India’s efforts to counter cross-border terrorism.

OUTLOOK

Today morning, Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 15 points higher start for our market.

In yesterday's report we had mentioned that 9890 is the immediate support on the hourly chart, with the stop-loss of which trading longs should be held on to.

Nifty broke this support and plunged all the way to 9861 but recovered to end at 9913.

A trendline adjoining bottoms made in August is placed around 9830 and that is the next important support to eye. Below 9830, 9685, the bottom made in August, would be the next crucial support.

On the way up, 9988, the top made yesterday, is the immediate hurdle, upon crossover of which, 10138 would be the next upside target.

NIFTY TAKES OUT 9950 HURDLE; STAY LONG WITH THE STOP-LOSS OF 9890

NIFTY TAKES OUT 9950 HURDLE; STAY LONG WITH THE STOP-LOSS OF 9890

WORLD MARKETS                             

US indices gained 0.1%-0.2% on Friday after digesting weaker-than-expected employment data.

U.S. nonfarm payrolls for August showed 156,000 jobs were created, below the 180,000 forecast. Wages grew at an annualized rate of 2.5%, less than expected. Construction spending for July hit a nine-month low and national factory activity for August expanded more than expected.

The benchmark 10-year yield hit 2.11% before jumping to 2.155%. The dollar, meanwhile, traded more than half a percent lower before holding slightly above breakeven.

Brent crude fell 11 cents to settle at $52.75 a barrel while West Texas Intermediate added 6 cents to settle at $47.29 a barrel.

European markets added 0.1%-0.9%. Basic resources were higher after data showed the Caixin China manufacturing PMI for August hit a six-month high of 51.6, topping analyst expectations. Euro zone manufacturing PMI confirmed an earlier reading of 57.4 for August. In the U.K., the manufacturing purchasing managers' index rose to a four-month high of 56.9 in August, beating forecasts.

For the week, US indices gained 0.8%-2.7%, with the Nasdaq notching its best weekly performance of the year. In Europe, FTSE gained 0.4% but DAX and CAC lost 0.9% and 0.4% respectively. Asian markets gained 0.4%-1.2%.

North Korea yesterday claimed that it had conducted a test of a hydrogen bomb meant to be carried by a long-range missile. The test — which the North called a "perfect success" — was estimated to have an explosive yield of up to 100 kilotons.

Following this, the US Treasury Department chief said they will prepare a package of sanctions that would "cut off North Korea economically"

AT HOME

Benchmark indices gained about half a percent, extending the winning streak to third straight day. Sensex settled at 31892, up 162 points while Nifty finished at 9974, up 56 points. BSE mid-cap and small-cap indices climbed 1% and 0.8% respectively. BSE Realty index jumped 2.6%, becoming top gainer among the sectoral indices, followed by 1.9% higher Auto and Metal indices. Telecom and Consumer Durable indices were the top losers, down 0.4% and 0.3% respectively.

FIIs net sold stocks worth Rs 833 cr but net bought index futures and stock futrues worth Rs 294 cr and 93 cr respectively. DIIs were net buyers to the tune of Rs 732 cr.

Rupee depreciated 12 paise to end at 64.02/$.

For the week, Sensex and Nifty gained 0.9% and 1.2% respectively.

India's Nikkei/Markit manufacturing PMI rose to 51.2 in August from 47.9 in July.

Auto sales were mostly good. Escorts reported 23% jump in August sales at 4587 units. Tata Motors sold 48988 units, a growth of 14%. Maruti sales jumped 23.8% to 1.63 lakh units. Eicher Motor sold 67977 Royal Enfield, a growth of 22%. M & M total sales rose 4% to 42116 while tractor sales were up 22% at 16516 units. TVS Motors and Hero Motocorp reported 16% and 10% growth respectively in August sales.

In yesterday's Cabinet reshuffle 9 new ministers were inducted as Cabinet ministers. Nirmala Sitharaman was made India's first full-fledged woman defence minister. Piyush Goyal will be India’s new Railway Minister. Petroleum Minister Dharmendra Pradhan and the Minority Affairs Minister Mukhtar Abbas Naqvi have been elevated to Cabinet rank. Suresh Prabhu will be the commerce and industry minister replacing Sitharaman.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.2%-1% and SGX Nifty is suggesting about 20 points lower start for our market.

Nifty on Friday climbed 56 points to end at 9974, taking out the immediate hurdle of 9950. Next hurdle would come around 10100. Immediate support on the hourly chart is placed around 9890, with the stop-loss of which, trading longs should be held on to.

U.S. markets will be closed today for Labor Day.

NIFTY MOVES CLOSER TO 9950 HURDLE; IMMEDIATE SUPPORT MOVES TO 9815

NIFTY MOVES CLOSER TO 9950 HURDLE; IMMEDIATE SUPPORT MOVES TO 9815

WORLD MARKETS                             

US indices gained 0.25%-1% with Nasdaq on top yet again.

Treasury Secretary Steven Mnuchin said that a "very detailed" tax plan had been prepared by President Donald Trump's administration and that the plan had been introduced to Congress and will be shown to the public at the end of September.

Consumer spending rose 0.3% in July, a touch below the 0.4% forecast. Meanwhile, the personal consumption expenditures price index rose 1.4% compared to the previous year, below the 1.5% rise seen in June. Weekly jobless claims totaled 236,000, matching estimates. Pending home sales fell 0.8% in June.

Treasury yields and Dollar fell after the inflation data were released. The benchmark 10-year note yield traded at 2.133%, while the two-year yield traded near 1.33%. Dollar index, after touching a high of 93.35, slipped to end at 92.57, the previous close being 92.85.

U.S. crude rose 2.8% to settle at $47.23 a barrel and Brent crude gained 3% to settle at $52.38.

European markets gained 0.4%-0.9%. Euro zone inflation hit 1.5% on a year-over-year basis in August, marking the highest rate in four months. German Statistics retail sales dropped more than expected in July.

Earlier, China's official manufacturing PMI topped expectations.

AT HOME

After falling about a fourth of a percent in the morning, benchmark indices saw a sustained northward move through rest of the session to end with gains of about three tenth of a percent, extending the winning streak to second straight day. Sensex added 84 points to settle at 31730 while Nifty finished at 9918, up 33 points. BSE mid-cap and small-cap indices gained 0.2% each. BSE Realty and Power indices were the top gainers among the sectoral indices, up 1.1% and 0.8% respectively while Healthcare index and Bankex were the top losers, down 0.5% and 0.1% respectively.

FIIs net bought stocks and index futures worth Rs 78 cr and 1185 cr respectively but net sold stock futures worth Rs 81 cr. DIIs were net buyers to the tune of Rs 510 cr.

Rupee appreciated 8 paise to close at 63.91/$.

For the August derivative series, Nifty lost 1% while for the August month, it lost 1.6%

India's GDP growth for April-June quarter hit a 13 quarter low of 5.7%, sharply lower than last year's 7.9% expansion in the same quarter as also the previous quarter's 6.1% growth. GVA grew 5.6%, lower than the last year’s 7.6% growth during the same quarter. Manufacturing sector grew at just 1.2% as against 10.7% in the same period last year. Gross Fixed Capital Formation grew 1.16% during the quarter compared to 7.39% in the same period in 2016.

Core sector growth slowed to 2.4% in July from due to contraction in output of crude oil, refinery products, fertiliser and cement.

India's fiscal deficit at July- end touched 92.4% of the budget mainly because of front loading of expenditure by various government departments.

OUTLOOK

China's August Caixin manufacturing PMI has come in at 51.6, up from 51.1 month-on-month.

Today morning, Asian markets are trading with gains of 0.2%-0.4% and SGX Nifty is suggesting about 15 points higher start for our market.

Nifty yesterday gained 33 points to finish at 9918 and after a positive start today it would be close to important 9948 hurdle, a crossover of which, as we have been mentioning, is required for a fresh upmove. If that happens, 10138, the highest high made in the beginning of August, would be the next upside target to eye.

Meanwhile, the upward sloping trendline adjoining recent bottoms on the daily chart now lands a support around 9815 which makes 9950-9815 immediate range, a breach of which, on either side, is required for a fresh directional view.

US non-farm payroll data for August will be out today and is expected to show an addition of 180000 jobs, down from 209000 figure in July. 

9950-9783 IS THE IMMEDIATE RANGE

9950-9783 IS THE IMMEDIATE RANGE

WORLD MARKETS                             

Dow and S & P 500 gained 0.1% and 0.5% respectively while Nasdaq surged 1% with technology stocks leading. S & P 500 posted a four-day winning streak.

Revised second-quarter GDP showed the U.S. economy grew 3% in that period, above the previous reading of 2.6%. The private sector in the U.S. added 237,000 positions in August, above a forecast of 185,000 and marking the fastest pace of private payrolls growth in five months.

Dollar index gained more than half a percent to 92.85.

Brent crude fell 2.2% to settle at $50.86 a barrel and U.S. crude shed 1% to settle at $45.96 as around 24% of U.S. refining capacity has now been shuttered due to tropical storm Harvey.

European markets gained 0.4%-0.5%. Eurozone economic sentiment index rose to 111.9 in August above the expected reading of 111.3.

AT HOME

After a gap up opening, benchmark indices added some more gains through the session to end higher by just under a percent. Sensex settled at 31646, up 258 points while Nifty added 88 points to finish at 9884. BSE mid-cap and small-cap indices climbed 1.5% and 1.3% respectively. All the BSE sectoral indices ended in green with Metal and Oil & Gas indices leading the tally, up 2.6% and 2.3% respectively.

FIIs net sold stocks worth Rs 12 cr but net bought index futures and stock futures worth Rs 765 cr and 63 cr respectively. DIIs were net buyers to the tune of Rs 291 cr.

Rupee appreciated 3 paise to end at 63.99/$.

The Union Cabinet approved a proposal to promulgate an ordinance that will allow hiking the cap on cess of SUVs, large, and luxury cars to 25% from 15% now.

RBI yesterday said that Rs 15.28 lakh cr. or 99% of the Rs 15.44 lakh cr. demonetised by withdrawal of Rs 500 and Rs 1000 notes, has been deposited with banks.

OUTLOOK

Today morning, Asian markets are trading mixed while SGX Nifty is suggesting about 20 points lower start for our market.

In yesterday's report we had reiterated the view that 9948, the top made on 17th August, continues to be important hurdle, a crossover of which is required for a fresh upmove. The benchmark touched a high of 9910 before closing at 9884 and is set to open modestly lower today.

9948 continues to be important resistance to eye. 9783, the bottom made on Tuesday, continues to be immediate support below which 9685, the bottom made in August so far, would be the crucial support to eye.

9685 BELOW 9783; 9948 CONTINUES TO BE IMPORTANT HURDLE

9685 BELOW 9783; 9948 CONTINUES TO BE IMPORTANT HURDLE

WORLD MARKETS                             

US indices reversed opening losses to end with gains of 0.1%-0.3%, shrugging off tension between the U.S. and North Korea.

United Technologies and Boeing contributed the most to the gains in Dow. Apple hit a record high.

President Trump, in a statement said that "all options are on the table" for dealing with North Korea.

In economic news, home price index rose slightly from May to June. Consumer confidence hit 122.9 in August, higher than the expected number of 120.3.

Gold futures for December delivery rose 0.3% to settle at $1,319 per ounce — its highest level since September 2016 — while the 10-year US Treasury yield hit its lowest level since November on safe haven buying.

Brent crude futures added 11 cents to settle at $52 a barrel while U.S. crude futures lost 13 cents to settle at $46.44.

European markets ended with cuts of 0.9%-1.5%. German Gfk consumer sentiment index rose to 10.9 going into September, marking the fifth consecutive monthly increase. The U.K.'s nationwide house prices index showed house prices down by 0.1% month-on-month. The yearly growth figure fell 2.1% from 2.9% in July.

AT HOME

After a gap down opening on the back of fresh missile launch by North Korea, benchmark indices saw a sustained downward move through the session to end with deep cuts of about a percent and fifth and breaking four-day winning streak. Sensex plunged 362 points to settle at 31388 while Nifty finished at 9796, down 117 points. BSE mid-cap and small-cap indices fell 0.8% and 1% respectively. All the BSE sectoral indices ended in red with Telecom and Energy indices leading the losses, down 1.9% and 1.6% respectively.

FIIs net sold stocks and stock futures worth Rs 1460 cr and 68 cr respectively but net bought index futures worth Rs 241 cr. DIIs were net buyers to the tune of Rs 1391 cr.

Rupee depreciated 11 paise to end at 64.02/$.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.1%-0.7% and SGX Nifty is suggesting about 40 points higher start for our market.

In yesterday's report we had mentioned that "Immediate support on the hourly chart is placed around 9800, below which 9685, the bottom made in August, would be the crucial support to eye".

The benchmark touched a low of 9783 before closing at 9796, but is set to open higher today.

A breach of 9783 would confirm a sell on the hourly chart and would pave the way for further correction. 9685, the bottom made in August so far, would be the next crucial support if that happens.

9948, the top made on 17th August, continues to be important hurdle, a crossover of which is required for a fresh upmove.

9800 IS THE IMMEDIATE SUPPORT; 9948 IMPORTANT HURDLE

9800 IS THE IMMEDIATE SUPPORT; 9948 IMPORTANT HURDLE

WORLD MARKETS                             

Dow and S & P 500 ended little changed while Nasdaq gained 0.3% yesterday.

Shares of oil refinery companies rose after Tropical Storm Harvey forced refineries in Houston to shut down. U.S. crude on the other hand settled 2.7% lower at $46.57 a barrel on concerns that refinery closures would affect crude demand.

European markets fell upto 0.5%.

AT HOME

Benchmark indices ended with gains of about half a percent, extending the winning streak to fourth straight day. Sensex added 155 points to settle at 31750 while Nifty finished at 9913, up 56 points. BSE mid-cap and small-cap indices continued to outperform, rising 1% each. All the BSE sectoral indices ended in green with Consumer Durable and IT indices leading the tally, up 1.3% and 1.2% respectively.

FIIs net sold stocks and index futures worth Rs 125 cr and 536 cr respectively but net bought stock futures worth Rs 698 cr. DIIs were net buyers to the tune of Rs 476 cr.

Rupee appreciated 13 paise to close at 63.90/$.

Infosys stock climbed after the company inducted Nandan Nilekani as the non-executive chairman on Thursday evening.

OUTLOOK

Earlier today, North Korea fired a missile that flew over Japan. Japanese Prime Minister Shinzo Abe said in a statement that the launch was reckless and unprecedented. Spot gold prices rose to $1322, their highest in around 10 months on safe-haven demand. Yen rose to 108.32, it's highest in four months.

Asian markets are trading with cuts of upto 1.5% with Kospi leading the losses and SGX Nifty is suggesting about 50 points lower start for our market.

In yesterday's report we had mentioned that 9948, the top made on 17th August, where a trendline adjoining recent tops on the daily chart is also placed, is an important resistance, a crossover of which will reestablish higher-top higher-bottom formation on the daily chart and would pave the way for further upmove.

The benchmark touched a high of 9926 before closing at 9913 but is set to open lower today.

9948 continues to be important hurdle, a crossover of which is required for fresh upmove. Immediate support on the hourly chart is placed around 9800, below which 9685, the bottom made in August, would be the crucial support to eye.