10000 IS THE UPSIDE HURDLE; 9860 IMMEDIATE SUPPORT

10000 IS THE UPSIDE HURDLE; 9860 IMMEDIATE SUPPORT

WORLD MARKETS                             

While Dow gained 0.1%, S & P 500 and Nasdaq fell 0.2% and 0.6% respectively on Friday with energy and information technology contributing the largest losses.

Hurricane Irma was downgraded from a category 5 to a category 4 early on Friday, but the head of the Federal Emergency Management Agency (FEMA) warned that the storm will "devastate" parts of the country

Wholesale inventories rose 0.6% in July, more than 0.4% expected and nearly matching its biggest gain in six months recorded in June.

European markets ended mixed with modest changes. Basic resources stocks fell, as metal prices like copper, nickel and lead all posted sharp losses. Miners were under pressure following softer-than-expected export data from China.

For the week, US indices fell 0.6%-1.2%. In Europe FTSE and CAC fell 0.8% and 0.2% respectively but DAX gained 1.3%. In Asia, Shanghai gained 0.2% but Nikkei plunged 2.2% and Hng Seng fell 1%.

China August producer price inflation rose 6.3% y-o-y, above July's 5.5% level and beating the 5.6% forecast.

News reports over the weeked suggested the European Central Bank is weighing an option to to reduce its bond-buying to 20 billion euros or 40 billion euros a month from the current 60 billion euros.

China's central bank intends to remove requirements for financial institutions to set aside foreign-exchange risk reserves for trading yuan forwards.

AT HOME

After rising about a third of a percent in the initial trade, benchmark indices gave away most of the gains through the choppy session to end just marginally higher. Sensex settled at 31688, up 25 points while Nifty added 5 points to finish at 9935. BSE mid-cap and small-cap indices lost 0.4% and 0.1% respectively. BSE Capital Goods index surged 1.9%, becoming top gainer among the sectoral indices, followed by 0.7% higher Industrial index. Realty index was the top loser, down 1.5%, followed by 0.9% lower Healthcare and Power indices.

M & M plunged 3.4% ahead of tomorrow's GST Council meet, which is expected to consider cess hike on SUVs and luxury cars.

Dr Reddy tumbled 2.9% after its Duvvada facility received six major observations from German health regulator.

FIIs net sold stocks and stock futures worth Rs 256 cr and 61 cr respectively but net bought index futures worth Rs 119 cr. DIIs were net buyers to the tune of Rs 488 cr.

Rupee appreciated 26 paise to end at 63.79/$, an over one-month high.

For the week, Sensex and Nifty lost 0.6% and 0.4% respectively.

GST Council on Saturday raised the cess on mid-sized to large cars and SUVs in the range of 2-7 percentage points but kept the tax burden lower than pre-GST levels. The council also reduced the GST rate on about 30 commonly used products.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.2%-1.5% and SGX Nifty is suggesting about 30 points higher start for our market.

As we have been mentioning, Nifty is in a consolidation mode after hitting a low of 9685 on 11th August. An upward sloping trendline adjoining recent bottoms on the daily chart is placed around 9860, which also coincides with 20-DMA, making 9860 an important immediate support.

On the way up, an upward sloping trendline adjoining tops made in mid-August and early September presents a resistance around 10000, making it an immediate hurdle. Above 10000, 10088 and 10138 would be next upside targets to eye.

CONSOLIDATION CONTINUES; 9988-9860 IS THE IMMEDIATE RANGE

CONSOLIDATION CONTINUES; 9988-9860 IS THE IMMEDIATE RANGE

WORLD MARKETS                             

US indices ended mixed with modest changes

Financials fell as the yield on the U.S. 10-year Treasury note slipped to to 2.05%.

The Senate approved a package that includes Hurricane Harvey recovery funds, a debt ceiling extension and temporary government funding.

Initial claims for state unemployment benefits soared by 62,000 to a seasonally adjusted 298,000 for the week ended Sept. 2, the highest level since April 2015

The European Central Bank held interest rates steady at 0 percent. ECB President Draghi hinted at starting to reduce the central bank's bond-buying program as early as next month. Draghi also gave an upbeat forecast on the region's economy.

In reaction, the euro spiked to $1.204 against the dollar.The dollar index hit low of 91.405, its lowest level since Jan. 6, 2015.

Brent crude rose 29 cents to $54.49 a barrel and WTI crude shed 7 cents to settle at $49.09 due to a larger-than-expected build in U.S. inventories.

European markets, except 0.4% lower Italy, gained 0.3%-0.7%.

AT HOME

After rising about half a percent in the initial trade, benchmark indices gave away most of the gains through the choppy session to end flat to marginally higher. Sensex settled at 31663, up 1 point while Nifty added 19 points to finish at 9935. BSE mid-cap and small-cap indices gained 0.8% and 0.5% respectively. BSE Metal and Auto indices climbed 1.4% and 0.8% respectively, becoming top gainers among the sectoral indices while Telecom and Energy indices were the top losers, down 0.8% and 0.4% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 564 cr, 107 cr and 275 cr respectively. DIIs were net buyers to the tune of Rs 245 cr.

Rupee appreciated 5 paise to end at 64.05/$.

OUTLOOK

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

As we have been mentioning, Nifty is in a consolidation mode after testing a low of 9685 on 11th August. The range of this consolidation is getting narrower as the upward sloping trendline adjoining recent bottoms made on daily chart is now placed around 9860, which also coincides with the bottom made on Monday. 9988, the top made on Monday, continues to be immediate hurdle, a crossover of which is required for a fresh upmove. If that happens, 10138, the top made in August, would be the next target to eye.

TRENDLINE SUPPORT RISES TO 9850; 9988 CONTINUES TO BE IMMEDIATE HURDLE

TRENDLINE SUPPORT RISES TO 9850; 9988 CONTINUES TO BE IMMEDIATE HURDLE

WORLD MARKETS                             

US indices gained 0.2%-0.3% after two top Democratic leaders said President Trump would support a debt ceiling extension and government funding plan.

Trump broke with his party to support a package that included a short-term debt ceiling extension. If Congress passes the package, which also includes relief funding for Hurricane Harvey, it would prevent a default on the federal debt. However, House Speaker Paul Ryan, a Republican, said the Democrats' proposal is "ridiculous" and "unworkable."

U.S. trade deficit for July came in at $43.7 billion, below the expected $44.7 billion. The IHS Markit PMI for August hit 56.0 and the ISM non-manufacturing index was in line with expectations.

The Federal Reserve's Beige Book found that the U.S. economy expanded at a modest to moderate pace in July through mid-August but signs of an acceleration in inflation remained slight.

European markets, except a 0.2% lower FTSE, gained 0.3%-0.8%.

AT HOME

After falling about seven tenth of a percent in the initial trade, benchmark indices recouped nearly half of the losses through the session to end lower by nearly four tenth of a percent. Sensex settled at 31662, down 148 points while Nifty lost 36 points to finish at 9916. BSE mid-cap and small-cap indices gained 0.2% and 0.4% respectively. BSE Healthcare and FMCG indices tumbled 1.4% and 1.1% respectively, becoming top losers among the sectoral indices while Metal and Basic Material indices were the top gainers, up 0.7% and 0.6% respectively.

FIIs net sold stocks and index futures worth Rs 1353 cr and 763 cr respectively but net bought stock futures worth Rs 507 cr. DIIs were net buyers to the tune of Rs 52 cr.

Rupee appreciated 2 paise to end at 64.10/$.

OUTLOOK

Today morning, except a marginally lower Shanghai, other Asian markets are trading with gains of 0.4%-1% and SGX Nifty is suggesting about 35 points higher start for our market.

Nifty has been in a consolidation mode after hitting a low of 9685 on August 11. As we have been mentioning, an upward sloping trendline adjoining recent bottoms on daily chart is the immediate support to eye. The same is currently placed around 9850 which makes 9850 an important immediate support upon breach of which Nifty might retest 9685 bottom. On the other hand 9988, the top made on Monday, is the immediate hurdle above which 10138, the top made in August, would be the next resistance.

ECB's monthly policy review is due today where Mario Draghi is set to start laying the groundwork for stimulus reduction. The ECB is widely expected to bump up its 2018 growth forecasts on Thursday in what could be the fourth consecutive quarterly upgrade of the projection.

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.