NIFTY ACHIEVES 11250 TARGET; 11490 IS IMMEDIATE HURDLE

NIFTY ACHIEVES 11250 TARGET; 11490 IS IMMEDIATE HURDLE

WORLD MARKETS

US indices nosedived 1.6%-1.9%, extending Tuesday's steep losses, on fears of an economic recession.

Three main indices had already fallen 1.1%-1.3% on Tuesday after the Institute for Supply Management said U.S. manufacturing activity fell last month to its lowest level in more than 10 years.

Brent futures fell 2.3% to $57.51 a barrel and WTI futures fell 1.8% to $52.64 a barrel after official data showed a rise in U.S. crude inventories.

European markets tumbled 2.7%-3.2%. A leading German economic institutes revised down German GDP growth for 2019 from 0.8% to 0.5% and cut 2020 projections from 1.8% to 1.1%. Elsewhere, British Prime Minister Boris Johnson presented his final Brexit offer to the European Union.

AT HOME

After a positive start, benchmark indices nosedived more than two and a half percent from top of the day but rebounded smartly in last hour to end lower by a percent. Sensex settled at 38305, down 361 points while Nifty lost 114 points to finish at 11359. BSE mid-cap and small-cap indices tumbled 1.5% and 1.6% respectively. Except a marginally higher Oil & Gas and flat Consumer Durable indices, all the BSE sectoral indices ended in red with Telecom and Realty indices leading the losses, down 4.5% and 3.9% respectively.

FIIs net sold stocks and stock futures worth Rs 1299 cr and 731 cr respectively but net bought index futures worth Rs 164 cr. DIIs were net buyers to the tune of Rs 1503 cr.

Rupee depreciated 21 paise to end at 71.08/$.

Maruti reported 24.4% y-o-y dip in sales at 1.22 lakh units but rose 15% month-on-month (m-o-m). Bajaj Auto sales fell 20% y-o-y to 4.02 lakh units but rose 3% m-o-m. Ashok Leyland sales fell 55% y-o-y to 8780 unit but rose 5.8% m-o-m. M & M total sales fell 21% y-o-y to 43343 units but rose 20% m-o-m. Tractor sales fell 2% y-o-y to 37011 units. Escorts tractor sales rose 2% y-o-y to 10855 units. 

GST collection slipped below Rs 92000 cr in September, hitting its lowest level since February 2018. This was also lower than the last financial year's average monthly collection of Rs 95000 cr.

OUTLOOK

The Office of the U.S. Trade Representative said it will impose tariffs on European Union goods on October 18.

Today, Shanghai continues to be shut while Nikkei and Hang Seng are down 2% and 0.7% respectively. SGX Nifty trading around 11340, suggesting around 90 points lower start when comapred to Tuesday's close of Nifty futures.

In Tuesday's report we had reiterated the view that 11381, the lower end of the gap created by gap up opening on 23rd September, continued to be immediate support below which, 200-DMA, placed around 11250, would be the next support to eye.

Nifty broke 11381 support and plunged all the way to 11248, achieving 200-DMA target and vindicating our view. From there, the index rebounded to end at 11359 but is set to open below 11300 today.

11248, the bottom made on Tuesday, is now the important immediate support to eye. If that breaks, 34-DMA, placed around 11080, would be the next support.

11491 is the immediate resistance on the hourly chart, upon crossover of which 11695, the top made last week, would be the bigger hurdle to eye.

Meanwhile, trading shorts can be held on to with the stop-loss of 11491.

NIFTY REBOUNDS FROM 11380 SUPPORT; 11695 CONTINUES TO BE HURDLE

NIFTY REBOUNDS FROM 11380 SUPPORT; 11695 CONTINUES TO BE HURDLE

WORLD MARKETS

US indices gained 0.4%-0.8% amid optimism around U.S.-China trade talks.

Treasury spokeswoman told Bloomberg on Saturday that the administration had no plans to impose restrictions at this time, before White House trade advisor Peter Navarro claimed in an interview with CNBC on Monday that the reports were “fake news.”

Earlier, data showed China’s official PMI increased from 49.5 in August to 49.8 in September, but remained below the 50-point mark that separates expansion from contraction.

Brent crude futures fell $1.16, or 1.9%, to $60.75 a barrel and WTI crude futures fell $1.84, or 3.3%, to settle at $54.07.

European markets, except 0.2% lower FTSE, gained 0.4%-0.7%. Data showed euro zone’s jobless rate fell to 7.4%, its lowest level in more than 11 years during August, raising hopes that the bloc can avoid a recession. A final estimate of U.K. second-quarter GDP showed the British economy contracting by 0.2%.

AT HOME

After falling nearly a percent in the first half, Sensex and Nifty recouped more than half of the losses later to end lower by 0.4% and 0.3% respectively, extending the losing streak to second straight day. Sensex lost 155 points to settle at 38667 while Nifty finished at 11474, down 38 points. BSE mid-cap and small-cap indices tumbled 1.1% and 1.2% respectively. BSE Bankex and Finance indices nosedived 2.6% and 2.4% respectively, becoming top losers among the sectoral indices while Telecom and Teck indices were the top gainers, up 3.9% and 2.4% respectively.

FIIs net sold stocks and stock futures worth Rs 469 cr and 182 cr respectively but net bought index futures worth Rs 701 cr. DIIs were net buyers to the tune of Rs 505 cr.

Rupee depreciated 31 paise to end at 70.87/$.

For the month, Sensex and Nifty gained 3.6% and 4.1% respectively, breaking 3-month losing streak.

India's core sector output contracted by 0.5% in August as aginst growth of 2.7% in the previous month.

Fiscal deficit in April-August 2019 period hit 79% of full year target.

OUTLOOK

Today morning, Hang Seng and Shanghai are shut while Nikkei is up 0.8%. SGX Nifty is suggesting about 25 points higher start for our market.

In yesterday's report we had reiterated the view that 11695-11381 continues to be immediate range, a crossover of which, on either side, is required for a fresh move. We had also advised holding on to existing longs with the stop-loss of 11381.

Nifty, after touching a low of  11390, rebounded to close at 11474, holding on to 11381 support and vindicating our view.

11381, the lower end of the gap created by gap up opening on 23rd September, continues to be immediate support. If that gives way, 200-DMA, placed around 11250, would be the next support to eye.

11695, the top made last week, continues to be immediate support, a crossover of which is required for a fresh upmove.

11695-11381 CONTINUES TO BE IMMEDIATE RANGE

11695-11381 CONTINUES TO BE IMMEDIATE RANGE

WORLD MARKETS

Nasdaq tumbled 1.1% while S & P 500 and Dow fell 0.5% and 0.3% respectively on Friday after reports that the White House is considering limits on U.S. investment into China.

Shares of Alibaba plunged 5.1% on the news. Other Chinese stocks like Baidu and JD.com also traded lower.

Data showed U.S. consumer spending slowed more than expected in August.

WTI crude futures fell 0.9% to $55.91 and brent crude futures dropped 1.4% to $61.89 after Iranian President Hassan Rouhani claimed that the U.S. offered to remove all sanctions on Iran in exchange for negotiations.

European markets gained 0.3%-1%. Eurozone economic sentiment came in at its weakest since February 2015, sinking from 103.1 in August to 101.7 in September. Consumer confidence in September improved slightly to -6.5 from -7.1 in August, while business climate measures declined to -0.22 in September from +0.12 in August.

For the week, US indices fell 0.4%-2.1% with Nasdaq leading the losses.

AT HOME

Sensex and Nifty fell 0.4% and 0.5% respectively, extending the consolidation within the highs and lows made earlier during the week. Sensex lost 167 points to settle at 38822 while Nifty finished at 11512, down 59 points. BSE mid-cap and small-cap indices fell 0.6% and 0.8% respectively. Except 1.1% and 0.1% higher Telecom and Energy indices respectively, all the BSE sectoral  indices ended in red with  Metal and Realty indices leading the losses down 2.8% and 2.6% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 214 cr, 260 cr and 1055 cr respectively. DIIs were net buyers to the tune of Rs 459 cr.

Rupee appreciated 32 paise to end at 70.56/$.

For the week, Sensex and Nifty climbed 2.1% each, extending the winning streak to third consecutive week.

OUTLOOK

Today morning, Asian markets are trading with cuts of upto 0.6% and SGX Nifty is suggesting a flattish start for our market.

For past couple of sessions we have been mentioning that 11695, the top made last Monday, is the immediate hurdle, a crossover of which is required for a fresh upmove while 11381, the lower end of the gap created by gap-up opening on Monday, is the immediate support.

Nifty has been consolidating within these levels for past four sessions and is set to open around Friday's close, 11512.

11695-11381 continues to be immediate range, a crossover of which, on either side, is required for a fresh move. Once 11695 is taken out, 11981, the top made in July, would be the next target to eye.

Meanwhile, trading longs can be held on to with the stop-loss of 11381.

11695-11381 CONTINUES TO BE IMMEDIATE RANGE

11695-11381 CONTINUES TO BE IMMEDIATE RANGE

WORLD MARKETS

US indices fell 0.2%-0.6% as markets monitored the latest trade developments and assessed a whistleblower complaint against President Donald Trump that was released.

Media reports suggested that the U.S. is unlikely to extend a temporary waiver that allows U.S. companies to sell supplies to Huawei, a Chinese telecommunications giant. On the flip side, China’s foreign Minister Wang Yi said the U.S. has shown good will by waiving tariffs and China is willing to buy more American products.

The U.S. House Intelligence Committee released a declassified version of a whistleblower report alleging Trump used his office to solicit interference in the 2020 presidential election from a foreign country.

Brent crude futures rose 40 cents, or 0.6%, to $62.79 a barrel while WTI crude settled down 8 cents, or 0.1%, to $56.41 a barrel.

European markets gained 0.4%-0.8%. German Gfk consumer confidence survey rose for the first time in 2019 to come in at 9.9 for October following a reading of 9.7 for September.

AT HOME

Sensex and Nifty soared 1% and 1.2% respectively, nearly recouping losses suffered in yesterday's session. Sensex settled at 38989, up 396 points while Nifty added 133 points to finish at 11573. BSE mid-cap and small-cap indices rose 0.9% and 0.4% respectively. Except 0.6% and 0.3% lower IT and Teck indices respectively, all the BSE sectoral indices ended in green with Metal index leading the tally, up 4.2%, followed by 2.7% higher Realty index.

FIIs net bought stocks, index futures and stock futures worth Rs 737 cr, 1080 cr and 264 cr respectively. DIIs were net buyers to the tune of Rs 339 cr.

Rupee appreciated 15 paise to end at 70.88/$.

For the September derivative series, Nifty surged 5.7%.

OUTLOOK

Today morning, Nikkei and Hang Seng are down 0.9% and 0.2% respectively while Shanghai is little changed. SGX Nifty is suggesting about 30 points lower start for our market.

In yesterday's report we had reiterated the view that 11381, the lower end of the gap created by Monday's gap-up opening, continued to be immediate support while 11695, the top made on Monday, continued to be immediate hurdle.

Nifty surged to touch a high of 11610 before closing at 11573 and is set to open around 11550 today.

11695, the top made Monday, continues to be immediate hurdle, a crossover of which is required for a fresh upmove. If that happens, 11981, the top made in July, would be the next upside target.

11381, the lower end of the gap created by Monday's gap-up opening, continues to be immediate support.

NIFTY NEARS 11380 SUPPORT; 11695 CONTINUES TO BE IMMEDIATE HURDLE

NIFTY NEARS 11380 SUPPORT; 11695 CONTINUES TO BE IMMEDIATE HURDLE

WORLD MARKETS

US indices gained 0.6%-1% after President Trump said a U.S.-China trade deal could arrive sooner than expected. Stronger-than-expected new U.S. home sales data also helped.

Trump told reporters at the United Nations in New York that a U.S.-China deal could come sooner “than you think.” He later said Japan and the U.S. had reached an initial trade agreement.

A rough transcript of Trump’s call with Ukrainian President Volodymyr Zelensky was released by the White House. It showed Trump asked Zelensky if he could “look into” former Vice President Joe Biden and his son, Hunter.

Brent futures fell 1.03% to $62.45 a barrel, while WTI crude fell 1.4% to $56.49 a barrel after U.S. crude inventories unexpectedly rose.

European markets fell upto 0.8%

AT HOME

Benchmark indices tumbled 1.3% each on the back of profit booking and negative global cues. Sensex settled at 38593, down 503 points while Nifty lost 148 points to finish at 11440. BSE mid-cap and small-cap indices fell 1.8% and 1.5% respectively. BSE Auto and Realty indices slipped 3.8% and 3.1% respectively, becoming top losers among the sectoral indices while Power and Utilities indices were the top gainers, up 1% and 0.6% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 342 cr, 166 cr and 608 cr respectively. DIIs were net sellers to the tune of Rs 762 cr.

Rupee depreciated 3 paise to end at 71.03/$.

OUTLOOK

Today morning, Asian markets are trading with gains of upto half a percent and SGX Nifty is suggesting about 30 points higher start for our market.

In yesterday's report we had said that 11695, the top made on Monday, was the immediate hurdle, a crossover of which is required for a fresh upmove. We had also said that "11381, the lower end of the gap created by Monday's gap up opening, continues to be immediate support".

Nifty plunged to touch a low of 11416 before closing at 11440 and is set to open higher today.

11381, as mentioned above, is the lower end of the gap created by Monday's gap-up opening, while 11355 is the 33% retracement level of the recent 10670-11695 umpove, making 11380-11355 immediate support zone. If 11355 breaks, next support will come at 11180, which is the 50% retracement level of the aforementioned upmove.

11695, the top made on Monday, continues to be immediate hurdle, a crossover of which is required for a fresh upmove.

11695 CONTINUES TO BE IMMEDIATE HURDLE; 11381 IMMEDIATE SUPPORT

11695 CONTINUES TO BE IMMEDIATE HURDLE; 11381 IMMEDIATE SUPPORT

WORLD MARKETS

US indices fell 0.5%-1.5% on worries about President Donald Trump’s political future.

House Speaker Nancy Pelosi announced a formal impeachment inquiry into President Donald Trump. Trump, in a call earlier this year with Ukraine’s leader, Volodymyr Zelensky, allegedly pressured him to investigate Democratic presidential hopeful Joe Biden’s family.

Trump said he would release the full transcript of the controversial call.

Separately, in a speech at the United Nations General Assembly, Trump sharply criticized what he called China’s unfair trade practices , saying he would not accept a “bad deal” between the United States and China.

Brent crude futures fell $1.35, or 2%, to $63.42 a barrel and WTI futures fell $1.12, or 1.9%, to $57.52 a barrel.

In Europe, FTSE and DAX fell 0.5% and 0.3% respectively while CAC ended little changed. In a landmark case, the U.K.’s highest court ruled that Prime Minister Boris Johnson’s suspension of parliament for five weeks until October 14 was unlawful.

AT HOME

Bulls took a breather after two-day sprint as benchmark indices ended little changed after a range-bound but choppy session. Sensex settled at 39097, up 7 points while Nifty lost 12 points to finish at 11588. BSE mid-cap index fell half a percent while small-cap index rose 0.2%. BSE IT and Teck indices climbed 2.3% and 2% respectively, becoming top gainers among the sectoral indices while Capital Goods and Metal indices were the top losers, down 1.8% and 1.7% respectively.

FIIs net sold stocks and stock futures worth Rs 828 cr and 818 cr respectively but net bought index futures worth Rs 886 cr. DIIs were net buyers to the tune of Rs 473 cr.

Rupee depreciated 7 paise to end at 71/$.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.3%-0.6% and SGX Nifty is suggesting about 20 points lower start for our market.

11695, the top made on Monday, also coincides with a downward sloping trendline adjoining tops made in June and July 2019 and hence is immediate resistance, a crossover of which is required for a fresh upmove. If that happens, 11981, the top made in July, would be the next target.

Meanwhile, 11381, the lower end of the gap created by Monday's gap up opening, continues to be immediate support, with the stop-loss of which, trading longs can be held on to.

11980 ABOVE 11695; TRAIL STOP-LOSS TO 11381

11980 ABOVE 11695; TRAIL STOP-LOSS TO 11381

WORLD MARKETS

US indices ended little changed as weak economic data out of Europe stoked worries over the state of the global economy.

Manufacturing activity in Germany fell to its lowest level since the financial crisis this month, data from IHS Markit showed. Germany’s services sector also grew at its slowest pace in nine months. Overall, manufacturing in the euro zone fell to a more than six-year low while services grew at is slowest pace in eight months, IHS Markit said.

The U.S. manufacturing sector hit a five-month high in September, while the services sector grew at its fastest pace in two months, according to data from IHS Markit.

Brent futures rose 40 cents to $64.68 a barrel, while U.S. West Texas Intermediate (WTI) crude rose 0.95% to settle at $58.64.

European markets fell 0.3%-1.1% on weak German data and collapse of Thomas Cook.

AT HOME

Bull rampage continued as benchmark indices soared just under 3% to close at the highest level since 17th September, marking a two-month-high. Sensex added 1075 points to settle at 39090 while Nifty finished at 11600, up 326 points. BSE mid-cap and small-cap indices climbed 3.1% and 2.7% respectively. BSE Capital Goods index and Bankex galloped 6.6% and 5.7% respectively, becoming top gainers among the sectoral indices while IT and Teck indices were the top losers, down 3.3% and 3.1% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 2684 cr, 1693 cr and 805 cr respectively. DIIs were net buyers to the tune of Rs 292 cr.

Rupee appreciated 1 paise to end at 70.93/$.

ZEE Entertainment plunged following reports that a lender had sold a part of the company’s pledged shares in the open market.

OUTLOOK

Today morning, Asian markets are trading with modest gains and SGX Nifty is suggesting about 60 points higher start for our market.

In yesterday's report we had said that 11360-11400 was the immediate  resistance zone, upon crossover of which, 11620, the 67% retracement level of the entire fall, would be the next upside target.

Nifty, opened above the 11400 mark and surged all the way to 11694 before closing at 11600.

Once 11694, the top made yesterday, is taken out, 11981, the top made in July 2019, would be the next upside target.

Meanwhile 11381, the lower end of the gap created by yesterday's gap up opening, would now act as immediate support, with the stop-loss of which, trading longs can be held on to.