17250-17200  CONTINUES TO BE SUPPORT ZONE; 17436 IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices fell 0.8%-0.9% on Friday, with the Dow and S&P 500 posting a fifth straight day of losses, while the Nasdaq Composite registered its third consecutive negative session.

 

The producer price index rose 8.3% y-o-y in August for its largest increase since at least 2010. Month-on-month it rose 0.7%, above the estimate of 0.6% but down from the 1% gain in July.

 

U.S. President Biden and Chinese leader Jinping spoke for the first time in seven months. The topic of discussion included economic issues, climate change and COVID-19.

 

US 10-year treasury yield rose 4 bps to 1.339%. The dollar index fell 0.1% to 92.459. Spot gold fell 0.2% to $1,790.37 an ounce.

 

Brent crude rose $1.47, or 2%, to $72.92 while WTI crude settled 2.3%, or $1.58, higher at $69.72 per barrel.

 

In Europe, FTSE inched up 0.1% while DAX and CAC fell 0.1% and 0.3% respectively.

 

For the week, Dow fell 2.2% in its second negative week in a row. The S&P 500 fell 1.7% while the Nasdaq Composite dipped 1.6%. Oil inched up nearly half a percent. Gold fell nearly 2% for its first weekly decline in five.

 

AT HOME

 

Consolidation continued as Nifty inched up 0.1%, marking the third consecutive session of movement of less than 0.1%. Sensex settled at 58305, up 55 points while Nifty gains 16 points to close at 17369. Nifty mid-cap and small-cap indices rose 0.3% and 0.6% respectively.BSE Telecom and Power gained 2.4% and 1.6% respectively, becoming top gainers among the sectoral indices while Realty and Consumer Durables lost 0.6% and 0.3% respectively, becoming the top losers.

 

FIIs net bought stocks worth Rs 423 cr but net sold index futures and stock futures worth Rs 1517 cr and 1275 cr respectively. DIIs were net buyers to the tune of Rs 704 cr.

 

Rupee appreciated 10 paise to end at 73.50/$.

 

For the week, Sensex and Nifty gained 0.3% each, extending the winning streak to third consecutive week.

 

Industrial output rose by 11.5% in July 2021 as against a 10.5% contraction in July 2020 but was lower than the 13.6% growth recorded in June.

 

OUTLOOK

 

Today morning, Hang Seng and Nikkei are down 1.6% and 0.3% respectively while Shanghai is up 0.1%. SGX Nifty is trading around 17360, suggesting a flattish start when compared to Thursday's close of Nifty futures.

 

In Thursday's report we had reiterated the view that 17250-17200 continued to be immediate support zone and 17436, the top made Tuesday, was the immediate hurdle.

 

Nifty ended little changed at 17369 after trading in a narrow range.

 

17436, the top made Tuesday, continues to be immediate hurdle, upon crossover of which, 17600-17650 would be the next target zone.

 

17250-17200 continues to be the support zone and trading longs can be held on to with the stop-loss of 17200.

 

36151, the low made last week, is the immediate support for Banknifty; 37140 is the immediate hurdle.

 

TRAIL STOP-LOSS TO 17200

 

TRAIL STOP-LOSS TO 17200

 

WORLD MARKETS

 

Dow and S & P 500 fell 0.8% and 0.3% respectively while Nasdaq inched up 0.1% amid lingering concerns about the delta Covid variant’s impact on the economic reopening.

 

US 10-year treasury yield rose nearly 5 bps to 1.37%. The dollar index climbed 0.6% to 92.42. Gold dropped 1.4% to $1,797 per ounce

 

Brent crude declined 53 cents, or 0.73%, to $71.69 per barrel, while WTI crude settled 94 cents, or 1.36%, lower at $68.35 per barrel, extending losses from the previous session, as Saudi Arabia’s sharp cuts in crude contract prices for Asia sparked fears over slower demand.

 

European markets fell 0.3%-0.7%. Germany’s ZEW economic sentiment index for September fell to 26.5 points from 40.4 in August, short of a forecast of 30.0.

 

China’s exports jumped 25.6% y-o-y in August, above expectations for a 17.1% rise.

 

AT HOME

 

After rising a third of a percent and hitting fresh record highs, benchmark indices slipped to end marginally in the red, snapping 3-day winning streak. Sensex settled at 58279, down 17 points while Nifty lost 15 points to finish at 17362. Nifty mid-cap and small-cap indices fell 0.25% and 0.1% respectively to snap 10-day winning streak. BSE Realty and IT indices tumbled 2.2% and 1.2% respectively, becoming top losers among the sectoral indices, while Telecom index soared 3.1% to become top gainer, followed by 1.3% higher Consumer Durables index.

 

FIIs net sold stocks and stock futures worth Rs 145 cr and 1091 cr respectively but net bought index futures worth Rs 433 cr. DIIs were net sellers to the tune of Rs 137 cr.

 

Rupee depreciated 31 paise to end at 73.42/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.2%-0.6% and SGX Nifty is suggesting around 60 points higher start for our market.

 

In yesterday's report we had said that 17430, the top made Monday, was the immediate hurdle, upon crossover of which 17650 would be the next upside target to eye.

 

Nifty, after touching a high of 17436, eased to end at 17362 and is set to open near 17400 today.

 

17575, followed by 17650 are the upside levels to eye.

 

17250-17200 is the support zone and trading longs can be held on to with the stop-loss of 17200.

 

TRAIL STOP-LOSS TO 17120

 

TRAIL STOP-LOSS TO 17120

 

WORLD MARKETS

 

Markets in the U.S. were closed yesterday for the Labor Day holiday

 

European markets gained 0.7%-1%.

 

Dollar index inched up 0.2% to 92.31, snapping 4-day losing streak. Spot gold eased 0.2% to $1823 an ounce.

 

Brent crude fell half a percent to $72.08 a barrel while WTI was off 0.6% at $68.79.

 

AT HOME

 

Benchmark indices rose three tenth of a percent, extending the winning streak to third straight session and hitting fresh record highs. Sensex added 167 points to settle at 58297 while Nifty finished at 17378, up 54 points. Nifty mid-cap and small-cap indices rose 0.4% and 1.1% respectively. BSE Realty index soared 3%, becoming top gainer among the sectoral indices, followed by 1.5% higher IT index. Oil & Gas and Power indices were the top losers, down 0.7% and 0.5% respectively.

 

FIIs net sold stocks and stock futures worth Rs 589 cr and 203 cr respectively but net bought index futures worth Rs 347 cr. DIIs were net buyers to the tune of Rs 547 cr.

 

Rupee depreciated 9 paise to end at 73.11/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.1%-0.8% and SGX Nifty is suggesting a flattish start for our market.

 

In yesterday's report we had said that 17400 was the next upside target, above which, 17650, which is the target of the flag pattern breakout that happened in early August, would be the next upside level to eye. We had also advised trailing the stop-loss in long positions to 17100.

 

Nifty touched a high of 17429 and slipped from there to end at 17378.

 

17430, the top made yesterday, is the immediate hurdle, upon crossover of which 17650 would be the next upside target to eye.

 

Immediate support on the hourly chart has moved up to 17120, with the stop-loss of which, trading longs can be held on to.

 

37140, the top made Friday, continues to be immediate hurdle for Banknifty; 36400 is the immediate support, with the stop-loss of which, trading longs can be held on to.

 

TRAIL STOP-LOSS TO 17100

 

TRAIL STOP-LOSS TO 17100

 

WORLD MARKETS

 

Dow fell 0.2%, S & P 500 was little changed while Nasdaq gained 0.2% on Friday after the August jobs report came in short of expectations, showing the impact of the delta-fueled Covid resurgence.

 

Nonfarm payrolls increased by 235,000 in August, missing the expected 7,20,000 number by a wide margin and marking a significant slowdown from July’s revised number of 1.053 million. The unemployment rate dropped to 5.2% from 5.4%, in line with estimates. Average hourly earnings showed a strong 0.6% rise month over month.

 

US 10-year treasury yield gained 3 bps to 1.322%. Dollar index fell 0.2% to 92.03. Spot gold climbed 1.2% to $1,830.71 per ounce, its highest since mid-June.

 

Brent crude rose 0.5% to $73.42 a barrel while WTI crude futures were up 21 cents or 0.3% to $70.20 a barrel.

 

China's Caixin/Markit services PMI came in at 46.7, against July’s reading of 54.9. Earlier this week, the official non-manufacturing PMI for August showed contraction in the sector for the first time since early 2020.

 

In Europe, FTSE and DAX fell 0.4% each while CAC plunged 1.1%. Eurozone final IHS Markit composite PMI dropped to 59.0 from July’s 15-year high of 60.2.

 

For the week, Dow fell 0.2% while Nasdaq and S & P 500 gained 1.6% and 0.6% respectively. In Europe, FTSE and DAX fell 0.1% and 0.4% respectively while CAC inched up 0.1%. In Asia, Nikkei and Nifty soared 5.4% and 3.7% respectively while Hang Seng and Shanghai were up 1.9% and 1.7% respectively.

 

AT HOME

 

Record run continues as benchmark indices added another half a percent to hit fresh record highs. Sensex settled at 58129, up 277 points while Nifty added 89 points to finish at 17323. Nifty mid-cap and small-cap indices gained 0.5% and 0.4% respectively with the former hitting fresh record high. BSE Energy and Oil & Gas indices soared 3.6% and 2.2% respectively, becoming top gainers among the sectoral indices while Telecom index was the top loser, down 0.5%, followed by 0.2% lower Finance, FMCG and Bankex indices.

 

FIIs net bought stocks worth Rs 769 cr but net sold index futures and stock futures worth Rs 742 cr and 593 cr respectively. DIIs were net buyers to the tune of Rs 669 cr.

 

Rupee appreciated 4 paise to end at 73.02/$.

 

For the week, Senesx and Nifty gained 3.6% and 3.7% respectively.

 

OUTLOOK

 

Today morning, Nikkei is trading with gains of 1.5% while Hang Seng and Shanghai are up nearly half a percent. SGX Nifty is suggesting around 40 points higher start for our market.

 

Readers would recall that we had turned our view bullish after 15950 hurdle was taken out and have been advising holding on to long positions with a trailing stop-loss.

 

On Friday, we had said that 17350-17400 was the next target zone to eye and had advised trailing the stop-loss in long positions to 16990.

 

Nifty touched the high of 17340 before closing at 17323 and is set to open above 17350 today.

 

17400, where an upward sloping trendline adjoining recent tops on the hourly chart is placed, is the next upside target to eye. Above 17400, 17650, which is the target of the flag pattern breakout that happened in early August, would be the next upside level to eye.

 

Immediate support on the hourly chart has moved up to 17100, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, above Friday's high of 37140, 37708, the top made in February, would be the next upside target to eye; 36400 is the immediate support, with the stop-loss of which, trading longs can be held on to.

TRAIL STOP-LOSS TO 16990

 

TRAIL STOP-LOSS TO 16990

 

WORLD MARKETS

 

US indices gained 0.1%-0.4% on the back of better-than-expected jobless claims data and gearing up for the August jobs report.

 

First-time jobless claims totaled 340,000 for the week ended Aug. 28, its lowest since March 2020 and compared with the 345,000 estimate.

 

August non-farm payroll report is expected to show an addition of 720,000 jobs, down from 943,000 jobs added in July. The unemployment rate is expected to dip to 5.2%, compared to 5.4% in July.

 

US 10-year treasury yield moved 1 basis point lower to 1.29%. The dollar index fell 0.303% to 92.229. Spot gold eased 0.2% to $1,809.60 per ounce.

 

Brent crude rose $1.44, or 2%, to $73.03 a barrel while WTI crude settled up $1.40, or 2%, to $69.99 a barrel.

 

European markets rose 0.1%-0.2%.

 

AT HOME

 

Bulls were back to work after one day rest as benchmark indices soared 0.9% each to hit fresh record highs. Sensex settled at 57852, up 514 points while Nifty added 158 points to finish at 17234. Nifty mid-cap and small-cap indices climbed 1% each with the former hitting record high. Except 0.2% and 0.1% lower Auto and Oil & Gas indices, all the BSE sectoral indices ended higher with FMCG index leading the tally, up 1.6%, followed by 1.5% higher IT and Consumer Durables indices.

 

FIIs net bought stocks, index futures and stock futures worth Rs 349 cr, 1228 cr and 462 cr respectively. DIIs were net buyers to the tune of Rs 382 cr.

 

Rupee appreciated 3 paise to end at 73.05/$.

 

India's August exports rose 45.2% y-o-y to $33.14 bn while imports surged 51.5% to $47.01 bn, leaving a trade deficit of $13.87 bn as against deficit of $10.97 in July.

 

OUTLOOK

 

Today morning, Nikkei is up 0.4% while Hang Seng and Shanghai are down 0.8% and 0.2% respectively. SGX Nifty is suggesting a modestly higher start for our market.

 

In yesterday's report we had said that 17300-17350 continued to be next target zone for Nifty and had advised trailing the stop-loss in long positions to 16810.

 

Nifty surged to 17245 before closing at 17234.

 

17350-17400 is the next target zone to eye.

 

Immediate support on the hourly chart has moved up to 16990, with the stop-loss of which, trading longs can be held on to.

 

Above 37000, 37230 and 37700 would be the upside levels to eye for Banknifty; 35950 is immediate support.

 

TRAIL STOP-LOSS TO 16810

 

TRAIL STOP-LOSS TO 16810

 

WORLD MARKETS

 

Dow fell 0.1%, S & P 500 was little changed while Nasdaq gained 0.3%.

 

Data from ADP showed private payrolls for August rose just 374,000, well below the estimate of 600,000 though above July’s 326,000. Other data showed U.S. manufacturing activity increased more than anticipated in August, but a measure of employment in factories fell to a nine-month low.

 

US 10-year treasury yield was little changed at 1.304%. The dollar index fell 0.203% and hit a new one-month low of 92.376. Spot gold was down 0.1% at $1,812.55 per ounce.

 

Brent crude fell 4 cents to settle at $71.59 a barrel while WTI crude rose 9 cents to $68.59 a barrel. OPEC and its allies agreed to stick to a policy from July of phasing out record output cuts by adding 400,000 barrels per day to the market.

 

European markets, except 0.1%, lower Dax, gained 0.4%-1.2%. German retail sales fell 5.1% month-on-month in July Vs forecast for a 0.9% fall and 4.5% gain in June. The final August manufacturing PMI for the euro zone came in at 61.4, slightly below an initial flash estimate of 61.5. U.K. August manufacturing PMI fell to 60.3 from July’s 60.4.

 

AT HOME

 

After rising half a percent at the open and hitting fresh record highs, benchmark indices tumbled to end lower by four tenth of a percent, with the Nifty snapping 7-day winning streak. Nifty mid-cap and small-cap indices however gained 0.8% and 0.3% respectively. BSE Realty index soared 5.5%, becoming top gainer among the sectoral indices, followed by 1.7% higher Power index. Metal and IT indices were the top losers, down 1.8% and 1.4% respectively.

 

FIIs net bought stocks worth Rs 667 cr but net sold index futures and stock futures worth Rs 873 cr and 133 cr respectively. DIIs were net sellers to the tune of Rs 1288 cr.

 

Rupee depreciated 8 paise to end at 73.08/$.

 

India's August Manufacturing PMI slowed to 52.3 from 55.3 in July.

 

GST collections in the month of August stood at Rs 1.12 lk cr Vs Rs. 1.16 lk cr in July.

 

Escorts August sales fell 21.7% y-o-y to 5693 units. Bajaj Auto total sales rose 5% to 3.73 lk units. Eicher Motors CV sales surged 93.5% to 4793 units. Ashok Leyland sold 9360 units, a jump of 48%. M & M tractor sales fell 21.6% to 21360 units. Maruti sales were up 4.8% at 1.30 lk units. Tata Motors sales surged 58.9% to 57995 units.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.1%-1% with Hang Seng on the top and SGX Nifty is suggesting a marginally higher start for our market.

 

In yesterday's report we had said that 17300-17350 was the next target zone to eye and had advised trailing stop-loss in long positions to 16780.

 

Nifty, after touching a high of 17225, reversed to end at 17076.

 

17300-17350 continues to be next target zone for Nifty.

 

Immediate support on the hourly chart has moved up to 16810, with the stop-loss of which, trading longs can be held on to.

 

Above 37000, 37230 and 37700 would be the upside levels to eye for Banknifty; 35950 is immediate support.

 

TRAIL STOP-LOSS TO 16780

 

TRAIL STOP-LOSS TO 16780

 

WORLD MARKETS

 

US indices ended marginally in the red.

 

The June S&P/Case-Shiller Home Price index showed another record high for home prices. The August Conference Board consumer confidence survey showed a larger-than-expected decline.

 

US 10-year treasury yield rose more than 2 bps to 1.309%. The dollar index fell 0.1%. Spot gold inched up 0.2% to $1,814.42 per ounce.

 

Brent crude fell 42 cents, or 0.6%, to $72.99 while WTI eased 53 cents, or 0.8% to $68.68 a barrel.

 

Official manufacturing PMI showed slowing Chinese factory activity growth in August, coming in at 50.1 against July’s reading of 50.4.

 

European markets fell 0.1%-0.4%. Eurozone consumer prices increased by 3% y-o-y in August, far above expectations and the ECB’s 2% target.

 

For the month, S&P 500 rose 2.9%, up for the seventh month in a row. The Nasdaq Composite gained about 4% and while the Dow added 1.2%.

 

AT HOME

 

Benchmark indices soared 1.2% each to hit fresh record highs and wrap up the month with solid gains. Sensex settled at 57552, up 662 points while Nifty added 201 points to finish at 17132. Nifty mid-cap and small-cap indices gained 0.3% and 0.4% respectively. All the BSE sectoral indices ended higher with Telecom index leading the tally, up 4.9%, followed by 1.6% higher Teck index.

 

FIIs net bought stocks and stock futures worth Rs 3881 cr and 2589 cr respectively but net sold index futures worth Rs 330 cr. DIIs were net sellers to the tune of Rs 1872 cr.

 

Rupee appreciated 26 paise to end at 73/$.

 

For the month, Nifty soared 8.7% for its biggest rise in 9 months.

 

Q1 FY22 GDP growth stood at 20.1%, which was better-than-expectation.

 

OUTLOOK

 

Today morning, Nikkei and Shanghai are up 0.9% and 0.1% respectively while Hang Seng is off 0.3%. SGX Nifty is suggesting a flattish start for our market.

 

Readers would recall that we had turned our view bullish after 15950 hurdle was taken out and have been advising holding on to long positions with a trailing stop-loss.

 

In yesterday's report we had said that 17000-17050 was the next target zone to eye.

 

Nifty soared to 17153 before closing at 17132.

 

17300-17350 is the next target zone to eye.

 

Immediate support on the hourly chart has moved up to 16780, with the stop-loss of which, trading longs can be held on to.

 

36900, 37250 are the upside levels to eye for Banknifty; 35800 is immediate support.

 

August auto sales data will be out today.