NIFTY TUMBLES AFTER TESTING 11600 HURDLE; 11394 CONTINUES TO BE IMMEDIATE SUPPORT

NIFTY TUMBLES AFTER TESTING 11600 HURDLE; 11394 CONTINUES TO BE IMMEDIATE SUPPORT

WORLD MARKETS

Dow fell 0.2% while S & P 500 and Nasdaq rose 0.2% and 0.3% respectively, snapping a four-day losing streak as tech shares rebounded.

Apple however dropped 1.3% after President Donald Trump pressured the company to make its products in the U.S.

The White House announced that it was in the process of coordinating a second meeting between U.S. President Donald Trump and North Korean leader Kim Jong Un.

US crude futures settled down 21 cents at $67.54 a barrel while Brent crude oil was up 35 cents at $77.18.

Main European markets gained 0.4%-0.5% while Italy and Spain soared 2.2% and 1.3% respectively.  Italian banks surged on reassurances from the government that the 2019 deficit will not disrespect European fiscal rules.

EU's chief Brexit negotiator, Michel Barnier, said that he thought it was "realistic" to expect a deal to be reached within six to eight weeks. Sterling rallied on these comments, rising 0.8% against the dollar and hitting a five-week high.

Balance of trade numbers out in the U.K. showed the trade deficit with the EU at its smallest level since April 2016. Other data showed the British economy grew at its fastest pace in nearly a year in the second-quarter.

AT HOME

Sensex and Nifty nosedived 1.2% and 1.3% respectively, suffering the worst fall after 23rd March and 16th March respectively. Sensex lost 467 points to settle at 37922 while Nifty finished at 11438, down 151 points. BSE mid-cap and small-cap indices fell 1.7% and 1.1% respectively. Except a 0.02% higher IT index, all the BSE sectoral indices ended in red, with Auto index leading the losses, down 1.8%, followed by 1.7% lower Metal and Energy indices.

FIIs bet sold stocks, index futures and stock futures worth Rs 842 cr, 631 cr and 708 cr respectively. DIIs were net sellers to the tune of Rs 290 cr.

Rupee depreciated 72 paise to end at 72.45/$.

OUTLOOK

Today morning, Hang Seng and Shanghai are little changed while Nikkei is up 0.8%. SGX Nifty is suggesting a marginally lower start for our market.

While Nifty was in a recovery mode after testing 34-DMA support of 11394, we had cautioned that a crossover of immediate hurdle placed around 11600 is required for a fresh upmove.

The benchmark, after touching a high of 11603 on Friday, plunged to close at 11438 yesterday, vindicating our view.

11394, the bottom made last week, continues to be immediate support to eye, upon breach of which, 11300, the 38.2% retracement level of the entire 10557-11760 upmove, would be the next support to eye.

11603, the top made last week, continues to be immediate hurdle.

11603-11620 IS THE IMMEDIATE RESISTANCE ZONE

11603-11620 IS THE IMMEDIATE RESISTANCE ZONE

WORLD MARKETS

US indices fell 0.2%-0.3% on Friday, with Nasdaq down for the fourth straight day.

Trump said tariffs on $200 billion of Chinese goods could "take place very soon." He also said the U.S. was ready to impose tariffs on an additional $267 billion worth of Chinese goods.

Wall Street Journal, citing U.S. officials, said that the possibility of the U.S. and China reaching a trade deal are fading. Bloomberg said that the U.S. and Canada will likely end the week with no trade deal in place.

Trump also said the U.S. would be starting trade negotiations with Japan, noting: "If we don't make a deal with Japan, Japan knows it's a big deal."

The U.S. economy added 201,000 jobs in August, more than the expected increase of 191,000. Average hourly earnings rose 2.9%, marking the largest jump since 2009. Treasury yields jumped to their highs of the session following the jobs report release, while the dollar also rose.

European markets ended mixed with FTSE and Italy down 0.6% and 0.4% respectively while DAX and CAC gained 0.04% and 0.2% respectively.  Eurozone GDP grew at 1.5% in second quarter, which was slightly below the 1.6% registered in the first-quarter of the year.

For the week, Dow fell 0.2%, S & P 500 lost 1% while Nasdaq plunged 2.6%. In Asia, Nikkei, Hang Seng and Shanghai fell 2.4%, 3.3% and 0.8% respectively. WTI fell more than 3.5% and Brent was down 1.6%.

AT HOME

After a modestly lower start, benchmark indices saw a sustained northward move through the session to end higher by four tenth of a percent, extending the winning streak to second consecutive day. Sensex added 147 points to settle at 38389 while Nifty finished at 11589, up 52 points. BSE mid-cap index soared 1.2% while small-cap index gained 0.6%. BSE Telecom and Auto indices soared 3.4% and 2.1% respectively, becoming top gainers among the sectoral indices while Power, Bankex and Finance indices fell 0.1%, 0.04% and 0.02% respectively.

FIIs net bought stocks and stock futures worth Rs 38 cr and 213 cr respectively but net sold index futures worth Rs 362 cr. DIIs were net buyers to the tune of Rs 942 cr.

Rupee appreciated 25 paise to end at 71.73/$.

For the week, Sensex and Nifty lost 0.7% and 0.8% respectively, breaking six-week winning streak.

OUTLOOK

Today morning, Nikkei is flat while Hang Seng and Shanghai are off 1.2% and 0.5% respectively. SGX Nifty is suggesting about 40 points lower start for our market.

After Nifty bounced back from the 34-DMA support placed at 11394, we had said that the immediate hurdle on the hourly chart is placed around 11600, a crossover of which is required for a fresh upmove.

Nifty, after touching a high of 11603 on Friday, closed at 11589 and is set to open around 11550 today.

11603 is where the top made on Friday is placed while 11620 is the 61.8% retracement level of the recent 11760-11394 fall, making 11603-11620 an immediate resistance zone, a crossover of which is required for a fresh upmove. 11760 would be the next target if that happens.

11394 continues to be important support.

11394 CONTINUES TO BE IMPORTANT IMMEDIATE SUPPORT; 11600 IMMEDIATE HURDLE

11394 CONTINUES TO BE IMPORTANT IMMEDIATE SUPPORT; 11600 IMMEDIATE HURDLE

WORLD MARKETS

Dow gained 0.1% while S & P 500 and Nasdaq lost 0.4% and 0.9% respectively with Nasdaq extending the losing streak to third straight day as Amazon and Apple fell.

Trade remained in focus with negotiations between the U.S. and Canada still underway. On US-China front, reports suggested the Trump administration could place tariffs on an additional $200 billion worth of Chinese goods as soon as a public comment period ends at 12:00 p.m. HK/SIN today. China's commerce ministry has said the country would retaliate if the U.S. imposes new tariffs.

Private companies added 163,000 jobs last month, according to ADP and Moody's Analytics, lower than the expected 190000 figure.

U.S. crude futures fell 95 cents or 1.4% to $67.77 a barrel and Brent lost 63 cents or 0.8% to $76.64 after data showed gasoline inventories rose unexpectedly last week.

European markets fell 0.3%-1%.

AT HOME

After trading in the red in first half, benchmark indices saw a smart rebound later to end higher by more than half a percent. Sensex settled at 38242, up 224 points while Nifty added 60 points to finish at 11536. BSE mid-cap and small-cap indices gained 0.3% and 0.5% respectively. BSE Healthcare and Energy indices soared 2.2% and 2.1% respectively, becoming top gainers among the sectoral indices while Telecom and Consumer Discretionary Goods & Services indices were the top losers, down 0.3% and 0.2% respectively.

FIIs net sold stocks and index futures worth Rs 455 cr and 1155 cr respectively but net bought stock futures worth Rs 124 cr. DIIs were net buyers to the tune of Rs 612 cr.

Rupee touched a record low of 72.11/$ before closing at 71.99/$, depreciating 23 paise compared to previous close and extending the losing streak to seventh straight day.

OUTLOOK

Today morning, Nikkei is down a percent while Hang Seng and Shanghai are up 0.4% and 0.9% respectively. SGX Nifty is suggesting a flattish start for our market.

After taking support at important 34-DMA on Wednesday, Nifty yesterday bounced back 60 points to end at 11536.

11394, the bottom made on Wednesday, continues to be important support to eye below which 11300, the 38.2% retracement level of the 10557-10760 upmove, would be the next support to eye.

11600 continues to be immediate support on the hourly chart, a crossover of which is required for a fresh upmove. 11760, the top made last week, would be the next target if that happens.

NIFTY REBOUNDS AFTER TESTING 34-DMA; 11600 IS THE IMMEDIATE HURDLE

NIFTY REBOUNDS AFTER TESTING 34-DMA; 11600 IS THE IMMEDIATE HURDLE

WORLD MARKETS

Dow gained 0.1% while S & P 500 and Nasdaq fell 0.3% and 1.2% respectively. Nasdaq had its worst day since August 15.

Tech shares fell as Twitter CEO Jack Dorsey and Facebook COO Sheryl Sandberg testified in front of Congress, addressing online election meddling and how to stop abuse on social platforms.

U.S. and Canadian officials resumed talks yesterday to try and settle differences and secure a future deal on trade.

WTI oil fell 1.5% to $68.72 and Brent fell 91 cents to $77.26 a barrel after a U.S. Gulf storm weakened and moved away from oil-producing areas, and on mounting concerns about global trade disputes and Turkey's currency crisis hurting demand.

Main European markets tumbled 1%-1.5%. British pound shot up 0.8% following the news that the U.K. and Germany have dropped key Brexit demands, a move which would ease negotiators on both sides into striking a deal.

AT HOME

After falling nearly a percent, benchmark indices staged a smart comeback in last hour or so to end lower by a fourth of a percent. Sensex settled at 38018, down 140 points while Nifty lost 43 points to finish at 11476. BSE mid-cap and small-cap indices fell 0.6% and 0.5% respectively. BSE Telecom and Consumer Durable indices tumbled 2.2% and 1.8% respectively, becoming top losers among the sectoral indices while Metal index climbed 1.1%, becoming top gainer, followed by 0.7% higher Healthcare index.

FIIs net sold stocks, index futures and stock futures worth Rs 384 cr, 2328 cr and 315 cr respectively. DIIs were net buyers to the tune of Rs 177 cr.

Rupee depreciated 17 paise to end at 71.75/$.

India's Nikkei services PMI fell to 51.5 in August from a 21-month high of 54.2 in July. Composite PMI eased to 51.9 from 54.1.

OUTLOOK

Today morning, Nikkei is down 0.3%, Hang Seng is marginally in the red while Shanghai is up 0.3%. SGX Nifty is suggesting about 20 points higher start for our market.

In yesterday's report we had said that "11500-11486 continues to be immediate support zone, upon breach of which, 34-DMA, placed around 11400, would be the next crucial support to eye".

Nifty yesterday plunged to 11393, achieving the 34-DMA target mentioned above, from where it rebounded smartly to end at 11476.

11394, yesterday's low, which coincides with 34-DMA, continues to be important support to eye. If that gives way, 11300, the 38.2% retracement level of the 10557-11760 upmove, would be the next support to eye.

11600 is the immediate hurdle on the hourly chart above which, 11760, the top made last week, would be the tougher resistance to eye.

NIFTY TESTS 11486-11500 SUPPORT ZONE; 11660 IS THE IMMEDIATE HURDLE

NIFTY TESTS 11486-11500 SUPPORT ZONE; 11660 IS THE IMMEDIATE HURDLE

WORLD MARKETS

Dow ended marginally in the red while S & P 500 and Nasdaq fell 0.2% each.

Amazon shares rose 1.9%, briefly pushing the company's market cap to $1 trillion.

The ISM U.S. manufacturing PMI rose to 61.3 in August from 58.1 in July.

Dollar index rose 0.4% to 95.48.

European markets, except a 1% higher Italy, fell 0.6%-1.3% with France leading the losses.

Argentine President Mauricio Macri announced "emergency" measures to try to balance next year's budget, including new taxes on exports and steep cuts to government spending. The Argentine peso fell over 3% on the news.

AT HOME

Sensex and Nifty fell 0.4% and 0.5% respectively to close at the lowest level since 17th August. Sensex settled at 38158, down 155 points while Nifty lost 62 points to finish at 11520. BSE mid-cap and small-cap indices nosedived 2.6% and 2% respectively. Except a 1.9% and 1.3% higher IT and Teck indices respectively, all the BSE sectoral indices ended in red with Consumer Durable and Basic Material indices leading the losses, down 2.6% and 2.5% respectively.

FIIs net bough stocks worth Rs 33 cr but net sold index futures and stock futures worth Rs 336 cr and 583 cr respectively. DIIs were net sellers to the tune of Rs 21 cr.

Rupee depreciated 37 paise to end at 71.58/$.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.2%-0.8% and SGX Nifty is suggesting about 20 points lower start for our market.

After Nifty broke 11620 support on Monday, in yesterday's report we had said that "11532, the bottom made on 24th August, which also coincides with 20-DMA, is the next support to eye". We had also said that "Below 11532, 11500-11486 gap, created by a gap up opening on 20th August, would be the next support to eye".

Nifty yesterday plunged to 11496 before closing at 11520, achieving both the targets mentioned above and vindicating our view.

11500-11486 continues to be immediate support zone. Upon breach of 11486, 34-DMA, placed around 11400, would be the next crucial support to eye.

11660 is the immediate hurdle on the hourly chart above which 11760, the top made last week, would be the bigger hurdle to eye.

11532 IS THE NEXT SUPPORT; 11700 IMMEDIATE HURDLE

11532 IS THE NEXT SUPPORT; 11700 IMMEDIATE HURDLE

WORLD MARKETS

US markets were shut yesterday for Labor Day.

In Europe, DAX fell 0.1% while FTSE, CAC and Italy gained 1%, 0.1% and 0.6% respectively.

Earlier, data showed China's August Caixin/Markit Purchasing Manager's Index (PMI) came in at 50.6, its lowest level since June 2017, as export sales fell for the fifth consecutive month.

Indonesia's rupiah fell to its weakest level in more than 20 years. Country's central bank reportedly said it would intervene in foreign exchange and bond markets.

AT HOME

Benchmark indices tumbled nearly eight tenth of a percent, registering biggest single day fall in a month. Sensex slipped 332 points to settle at 38312 while Nifty finished at 11582, down 98 points. BSE mid-cap and small-cap indices fell 0.4% and 0.2% respectively. BSE FMCG index fell 2.1%, becoming top loser among the sectoral indices, followed by 1.2% lower Realty, Power, Utilities and Bankex indices. Telecom and Consumer Durable indices were the top gainers, up 0.5% and 0.4% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 21 cr, 393 cr and 673 cr respectively. DIIs were net sellers to the tune of Rs 542 cr.

Rupee depreciated 22 paise to end at 71.21/$.

India's Nikkei manufacturing PMI fell to 51.7 in August from 52.3 in July.

OUTLOOK

Today morning, Shanghai is marginally higher while Hang Seng and Nikkei are trading with modest cuts. SGX Nifty is suggesting a marginally lower start for our market.

In yesterday's report we had said that 11620, where the rising trendline adjoining recent bottoms on the daily chart was placed, was the immediate support below which 11532, the bottom made on 24th August, would be the next support.

Nifty yesterday plunged 98 points to settle at 11582, breaking 11620 support decisively.

11532, the bottom made on 24th August, which also coincides with 20-DMA, is the next support to eye. Below 11532, 11500-11486 gap, created by a gap up opening on 20th August, would be the next support to eye.

11700 is the immediate hurdle on the hourly chart above which 11760, the top made last week, would be the bigger hurdle to eye.

Traders are advised to hold short positions with the stop-loss of 11700.

11620 IS THE IMMEDIATE SUPPORT; 11760 IMMEDIATE HURDLE

11620 IS THE IMMEDIATE SUPPORT; 11760 IMMEDIATE HURDLE

WORLD MARKETS

Dow ended marginally in the red, S & P 500 was flat while Nasdaq gained 0.3% on Friday as Boeing and Goldman Sachs fell while Apple and Nike rose.

Media reports citing US President Trump said that the US and Canada have not been able to seal a deal on Trade issues.

Trump also threatened to withdraw the U.S. from the World Trade Organization, (WTO) if they do not "shape up," escalating fears over global trade turmoil.

The University of Michigan's monthly survey of consumers hit 96.2 in the final reading of August, better than the drop to 95.5 expected.

Shares of Coca-Cola fell nearly 1% after the company said it agreed to buy coffee chain Costa for $5.1 billion.

Brent crude oil fell 35 cents to $77.42 and U.S. light crude ended Friday's session down 45 cents lower at $69.80 a barrel.

European markets fell 0.7%-1.3%. Auto stocks fell the most after Trump reportedly said the European Union's proposal to eliminate auto tariffs was "not good enough." He also said that the bloc's trading policies were "almost as bad as China."

Inflation in Eurozone, the 19 countries sharing the single currency, eased to 2% in August, down from 2.1% in July.

For the week US indices gained 0.7%-2.1% with Nasdaq on the top. In Europe, DAX and CAC fell 0.2% each while FTSE tumbled 1.7%. In Asia, Nikkei and Hang Seng added 1.2% and 0.8% respectively but Shanghai was off 0.2%.

AT HOME

Sensex lost 0.1% while Nifty ended marginally in the green on the last day of the week and month. Sensex settled at 38645, down 45 points while Nifty added 4 points to finish at 11680. BSE mid-cap and small-cap indices gained 0.4% and 0.6% respectively. BSE Healthcare index soared 2.2%, becoming top gainer among the sectoral indices, followed by 1.4% higher IT index. Energy index tumbled 1.5%, becoming top loser, followed by 0.6% lower Metal index. 

FIIs net sold stocks, index futures and stock futures worth Rs 213 cr, 1110 cr and 985 cr respectively. DIIs were net buyers to the tune of Rs 172 cr.

Rupee depreciated 25 paise to end at 70.99/$.

For the week, Sensex and Nifty gained 1% each, extending the winning streak to sixth consecutive week. For the month, Sensex and Nifty gained 2.8% each.

India's GDP growth surged to 8.2% in April-June quarter, the highest in two years. Core sector, comprising eight key industries, grew at 6.6% in July, down from 7.6% in June.

Maruti August sales fell 3.5% to 1.58 lakh units but Ashok Leyland posted 27% growth at 17386 units. TVS Motors posted 8% growth at 3.43 lakh units. Tata Motors registered 27% growth at 58250 units. Escorts sold 4812 units, a growth of 5%. M & M auto sales were up 14% at 48324 units. Hero Motocorp sold 6.85 lakh units, a growth of 1%.

July GST collection stood at Rs 93960 cr, down from Rs 96483 in July.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.4%-0.6% but SGX Nifty is suggesting about 20 points higher start for our market.

Nifty has been moving in a rising channel formed by rising tops and bottoms on the daily chart for last two months. On last count, after getting resisted near the upward sloping trendline adjoining tops at 11760, Nifty has consolidated over last couple of days and is now close to the lower end of the channel mentioned above. This support is placed around 11620. Below 11620, 11532, the bottom made on 24th August, would be the next support.

11760, the top made last week, is the immediate hurdle, above which, upward sloping trendline adjoining recent tops, which is now placed around 11870, would be the next upside target to eye.

Traders are advised to hold long positions with the stop-loss of 11620.