9920 CONTINUES TO BE IMMEDIATE SUPPORT; TCS, INDUSIND EARNINGS IN FOCUS

9920 CONTINUES TO BE IMMEDIATE SUPPORT; TCS, INDUSIND EARNINGS IN FOCUS

WORLD MARKETS                             

US indices gained about 0.2% after digesting Fed minutes which showed it believes the economy is strong enough to withstand another rate hike in December.

Minutes showed that one more interest rate increase this year was "likely to be warranted" given that the economic outlook remained "unchanged" in the medium term, a summary showed. Policymakers, however, remained concerned about inflation.

Dollar index fell.

Oil extended the upmove to third consecutive day with Brent up 0.6% to $56.94 a barrel and WTI up 0.8% at $51.30.

Main European markets ended mixed with modest changes. Italy and Spain rose 0.9% and 1.3% respectively. Spanish government asked for greater clarity from Catalan authorities over whether or not the region had declared independence.

AT HOME

After gaining about half a percent in first hour or so, benchmark indices plunged sharply in the late noon trade to end with cuts of about three tenth of a percent, breaking three-day winning streak. Sensex settled at 31834, down 90 points while Nifty lost 32 points to finish at 9985. BSE mid-cap and small-cap indices tumbled 0.8% and 1.1% respectively. BSE Realty and Metal indices fell 2% and 1.4% respectively, becoming top losers among the sectoral indices while Telecom and Oil & Gas indices were the top gainers, up 2.8% and 1.1% respectively.

FIIs net sold stocks worth Rs 108 cr but net bought index futures and stock futures worth Rs 768 cr and 486 cr respectively. DIIs were net buyers to the tune of Rs 234 cr.

Rupee gained 15 paise to end at 65.14/$.

OUTLOOK

Today morning, Asian markets are trading with modest gains and SGX Nifty is suggesting about 25 points higher start for our market.

After Nifty took out 34-DMA hurdle of 9930, we had given target of 10015, the 67% retracement level of the 10180-9687 fall. Once that was achieved, we had said that 10100 is the next target to eye and stop-loss in the long positions should be raise to 9920.

Yesterday, Nifty, after touching a high of 10067, slipped sharply to touch a low of 9955 and finally closed at 9985.

9920 continues to be immediate support to eye, a breach of which will confirm a sell on the hourly chart and would pave the way for further correction. 9814, the 67% retracement level of the recent 9687-10067 upmove, would be the next downside target if that happens.

On the way up, 10067, the top made yesterday, is the immediate hurdle above which 10180, the top made in September, would be the next major resistance to eye.

TCS and Indusind Bank will report their quarterly earnings today.

IIP for August is expected to show a growth of 2.5%, up from 1.2% in July. September CPI is expected to inch up to 3.56% from 3.36% in August.

10100 IS THE NEXT TARGET; TRAIL STOP-LOSS TO 9920

10100 IS THE NEXT TARGET; TRAIL STOP-LOSS TO 9920

WORLD MARKETS                             

US equities gained 0.1%-0.3% with the Dow hitting record intraday and closing high while S & P 500 and Nasdaq notched a record intraday high.

Wal-Mart announced a $20 billion buyback and reiterated its earnings outlook for the current fiscal year. Honeywell announced it plans to spin off its Home Products and Transportation Systems businesses into two separate companies. Pfizer, another Dow said it was thinking about selling or spinning off its consumer health-care business.

US crude rose 2.7% to $50.92 a barrel and Brent gained 1.3% to $56.52 after Saudi Arabia announced it would cut its oil exports in November by 560,000 barrels a day

European markets, except a 0.4% higher FTSE, lost upto 0.9% with Spain and Italy leading the losses on the back of ongoing political uncertainty in Spain.

AT HOME

Benchmark indices gained about a fourth of a percent, extending the winning streak to third straight day. Sensex added 78 points to settle at 31924 while Nifty finished at 10017, up 28 points. BSE mid-cap and small-cap indices climbed 0.6% and 1% respectively. Except a 1% and 0.2% lower Realty and FMCG indices, all the BSE sectoral indices ended in green with Utilities and Energy indices leading the tally, up 1% and 0.9% respectively.

FIIs net sold stocks and index futures worth Rs 505 cr and 391 cr respectively but net bought stock futures worth Rs 436 cr. DIIs were net buyers to the tune of Rs 402 cr.

Rupee appreciated 7 paise to end at 65.29/$.

IMF lowered India's growth projection for FY18 by half a percent to 6.7%, attributing it to demonetisation and introduction of the GST.

OUTLOOK

Today morning, except a marginally lower Shanghai, other Asian markets are trading with gains of upto 0.4% and SGX Nifty is suggesting about 30 points higher start for our market.

After 34-DMA hurdle of 9930 was taken out, we had said that 10015, the two-third retracement level of the 10180-9685 fall, is the next target as well as the hurdle to eye, a crossover of which is required for a fresh upmove.

Yesterday, Nifty rose 28 points to end at 10017, taking out this hurdle decisively.

10100 is the next upside target to eye above which 10180 would be the major resistance to eye.

Immediate support on the hourly chart is placed around 9920, with the stop-loss of which trading longs should be held on to.

NIFTY ACHIEVES 10015 TARGET; 9900 IS THE IMMEDIATE SUPPORT

NIFTY ACHIEVES 10015 TARGET; 9900 IS THE IMMEDIATE SUPPORT

WORLD MARKETS                             

US indices fell 0.1%-0.2%, pausing for breath ahead of earnings season. Nasdaq snapped a nine-day winning streak.

European markets, except a 0.2% lower FTSE, gained 0.1%-0.5%. DAX hit a new all-time high after data showed German industrial output rose more than expected in August.

WTI crude rose 29 cents to $49.58 a barrel and Brent rose 22 cents to $55.84 after OPEC signaled possible extension to output cut.

AT HOME

Benchmark indices ended marginally in the green after trading in a narrow range through the session. Sensex settled at 31847, up 33 points while Nifty added 9 points to finish at 9989. BSE mid-cap index ended marginally in the red while small-cap index climbed 0.6%. BSE Realty index soared 2.2%, becoming top gainer among the sectoral indices, followed by 0.9% higher Consumer Durable index. Oil & Gas and Utilities indices were the top losers, down 1% and 0.7% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 475 cr, 30 cr and 219 cr respectively. DIIs were net buyers to the tune of Rs 55 cr.

Rupee 65.35/$, appreciating 3 paise compared to previous close.

OUTLOOK

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

After Nifty took out 34-DMA hurdle placed at 9930, we had said that 10015, the two-third retracement level of the 10180-9687 fall, is the next target as well as the hurdle to eye.

Nifty yesterday touched a high of 10015 before closing at 9988, achieving this target and vindicating our view.

10015 continues to be immediate hurdle, a crossover of which is required for a fresh upmove. 10140, followed by 10180 would be next upside targets if that happens.

Meanwhile, immediate support on the hourly chart has moved up to 9900, with the stop-loss of which, trading longs should be held on to.

NIFTY TAKES OUT 34-DMA HURDLE; STAY LONG WITH THE STOP-LOSS OF 9890

NIFTY TAKES OUT 34-DMA HURDLE; STAY LONG WITH THE STOP-LOSS OF 9890

WORLD MARKETS                             

Nasdaq gained 0.1%, Dow ended flat on Friday while S & P 500 fell 0.1% with S & P 500 snapping 8-day winning streak after disappointing jobs report.

The U.S. lost 33,000 jobs September mainly on account of two major hurricanes Harvey and Irma, hitting the country. Last month marks the first time the U.S. labor market contracted since 2010. However, average hourly earnings rose to an annualized rate of 2.9%. The unemployment rate also fell to a 16-year low of 4.2%.

Treasury yields jumped after the data with the benchmark 10-year yield at 2.362%, while the two-year yield rose to 1.51%, notching its highest level since 2008.

Oil tumbled by around 2%, with WTI dipping back below $50 per barrel, as concerns of overproduction re-surfaced.

European markets, except a 0.2% higher FTSE, fell 1%-0.8%.  Catalonian government said that it will meet despite the Spanish Constitutional Court ordering the regional parliament to close on Monday.

For the week, US indices gained 1.2%-1.6%. Main European markets gained 0.6%-2%.  In Asia, Hong Kong soared 3.3%, Nikkei added 1.6% while Shanghai was up 0.2%.

AT HOME

Sensex and Nifty climbed 0.7% and 0.9% respectively to close at two-week high. Sensex settled at 31814, up 222 points while Nifty added 91 points to finish at 9980. BSE mid-cap and small-cap indices gained 1% and 1.1% respectively. All the BSE sectoral indices ended in green with Metal and Oil & Gas indices leading the tally, up 3.1% and 2.1% respectively.

FIIs net sold stocks worth Rs 1040 cr but net bought index futures and stock futures worth Rs 312 cr and 436 cr respectievly. DIIs were net buyers to the tune of Rs 1240 cr.

Rupee depreciated 23 paise to end at 65.37/$.

For the week, Sensex and Nifty gained 1.7% and 2% respectively to break two-week losing streak.

The Goods and Services tax (GST) council on Friday cut rates on 27 items and 12 services and relaxed return filing rules for small and medium enterprises (SMEs), deferred the controversial reverse charge mechanism (RCM) till March 31, 2018, and hastened tax refunds for exporters battling cash crunch.

OUTLOOK

Today morning, Shanghai, which has reopened after a week long holiday, is up more than a percent but other Asian markets are trading with modest cuts and SGX Nifty is suggesting about 25 points lower start for our market.

We had been mentioning that 34-DMA, placed around 9930, is the immediate hurdle, a crossover of which was required for a fresh upmove. Nifty, on Friday, surged 91 points to end at 9980, taking out this hurdle decisively.

10015, the two-third retracement level of the 10180-9687 fall, continues to be immediate upside target to eye.

9890 is the immediate support on the hourly chart, with the stop-loss of which, trading longs should be held on to.

NIFTY FAILS TO CLEAR 34-DMA HURDLE ONCE AGAIN; GST COUNCIL MEETING IN FOCUS

NIFTY FAILS TO CLEAR 34-DMA HURDLE ONCE AGAIN; GST COUNCIL MEETING IN FOCUS

WORLD MARKETS                             

US indices climbed 0.5%-0.8% with the S & P 500 extending the winning streak to eight straight day, its longest since 2013.

Financials rose tracking higher yields after House passed a $4.1 trillion budget, the first concrete step toward tax reform.

Weekly jobless claims fell by 12,000 to 260,000. The trade deficit shrank by 2.7% to $42.4 billion in August. Factory orders rose 1.2% in August, more than the expected 1% increase.

Dollar index rose about half a percent to seven-week high of 93.92.

WTI crude rebounded to settle 1.6% higher at $50.79 on expectations that Russia, Saudi Arabia will extend production cut.

European markets, except a marginally lower DAX, gained 0.3%-0.5%. Spain soared 2.5% on news that Spain's Constitutional Court has suspended a session of the Catalan Parliament due to take place Monday, during which, political leaders were expected to declare Catalonia's independence from Spain.

AT HOME

After rising about three tenth of a percent in first hour, benchmark indices slipped to end lower by a fourth of a percent, breaking four-day winning streak. Sensex lost 80 points to settle at 31592 while Nifty finished at 9889, down 26 points. BSE mid-cap and small-cap indices however gained 0.5% and 0.8% respectively. BSE Basic Material and Realty indices climbed 0.9%, becoming top gainer among the sectoral indices while Telecom and Oil & Gas indices were the top losers, down 0.7% and 0.6% respectively.

FIIs net sold stocks and index futures worth Rs 657 cr and 490 cr respectively but net bought stock futures worth Rs 129 cr. DIIs were net buyers to the tune of Rs 519 cr.

Rupee depreciated 13 paise to end at 65.14/$.

India's Nikkei/IHS Markit Services Purchasing Managers' Index rose to 50.7 in September from 47.5 in August, moving back above the 50-mark that separates growth from contraction. Composite PMI, which maps both manufacturing and services sectors, rose to 51.1 in September, from 49 in August

OUTLOOK

Today morning, Asian markets are trading with gains of upto 0.6% and SGX Nifty is suggesting about 30 points higher start for our market.

For past couple of sessions, we have been mentioning that 34-DMA, placed around 9930, is the important immediate hurdle, a decisive crossover of which is required for a fresh upmove. Yesterday, Nifty, after touching a high of 9945, slipped to end at 9888, failing to clear this hurdle once again.

If this hurdle is taken out decisively, 10015, the two third retracement level of the recent fall, would be the next target to eye.

9820 continues to be immediate support on the hourly chart below which 9685 would be the crucial support to eye.

All eyes would be on the GST Council meeting today which is expected to ease tax compliance requirement and relief package for MSMEs and exporters.

US September non-farm payroll data will be released today where addition of just 90000 jobs is expected as against 156000 in the previous month due to effects of hurricane Irma and Harvey.

NIFTY RESISTED NEAR 34-DMA; 9820 IMMEDIATE SUPPORT

NIFTY RESISTED NEAR 34-DMA; 9820 IMMEDIATE SUPPORT

WORLD MARKETS                             

US indices ended marginally in the green.

ISM nonmanufacturing index hit 59.8 in September, much higher than the 55.5 number expected. ADP and Moody's said that private-sector jobs grew by 135,000 in September, which was lower than August but topped expected print of 125000.

In Europe, DAX gained 0.5% while FTSE and CAC ended marginally lower. Spain and Italy plunged 2.8% and 1.4% respectively. Spain tumbled after the head of Catalonia's devolved government said his administration would declare independence from Spain "at the end of this week or the beginning of next."

Eurozone final composite Purchasing Managers' Index rose to 56.7 in September from 55.7 in August.

Oil prices fell for the third session with WTI down 44 cents to $49.98 a barrel after a surprising jump in U.S. crude exports to a record 2 million barrels per day. Brent fell 19 cents to $55.81.

AT HOME

Benchmark indices gained about six tenth of a percent to extend the winning streak to fourth straight day. Sensex added 174 points to settle at 31672 while Nifty finished at 9915, up 55 points. BSE mid-cap and small-cap indices gained 0.4% and 0.8% respectively. BSE Healthcare and Energy indices soared 1.8% each, becoming top gainers among the sectoral indices while Telecom index was the top loser, down 0.5%, followed by 0.2% lower Meatl and Teck indices.

FIIs net sold stocks worth Rs 632 cr but net bought index futures and stock futures worth Rs 802 cr and 1170 cr respectively. DIIs were net buyers to the tune of Rs 585 cr.

Rupee appreciated 49 paise to end at 65.01/$.

RBI kept interest rates unchanged because it anticipates upside risks to retail inflation. It maintained its neutral policy stance but lowered its fiscal 2018 projection for gross value added to 6.7% from 7.3%. RBI raise inflation forecast for second half of current fiscal to 4.2%-4.6%.

OUTLOOK

Markets in China, Hong Kong and South Korea are shut today, Nikkei is little changed and SGX Nifty is suggesting a flattish start for our market.

In yesterday's report we had reiterated the view that 34-DMA, placed around 9930, is the immediate hurdle, a decisive crossover of which is required for a fresh upmove.

Yesterday, Nifty, after touching a high of 9938, eased to end at 9915.

Just to reiterate, a decisive crossover of 34-DMA, placed around 9930, is required for a fresh upmove. If that happens, next immediate target would come around 10015, which is the two third retracement level of the recent fall.

9820 is the immediate support on the hourly chart below which 9685 would be the crucial support to eye.

34-DMA CONTINUES TO BE IMMEDIATE HURDLE; RBI IN FOCUS

34-DMA CONTINUES TO BE IMMEDIATE HURDLE; RBI IN FOCUS

WORLD MARKETS                             

S & P 500 and Nasdaq gained 0.2% each while Dow jumped 0.4%. All three indices ended at fresh record high and Dow extended the winning streak to fifth straight day.

September Auto sales came in better-than-expected.

Treasury yields fell with two-year yield at 1.47% and the benchmark 10-year yield at 2.33%. Gold tumbled to a seven-week low

WTI crude fell 16 cents to $50.42 a barrel.

In Europe Italy was down 0.1%, Spain was flat while FTSE and CAC gained 0.4% and 0.3% respectively. German market was shut.

AT HOME

Benchmark indices gained seven tenth of a percent to extend the winning streak to third straight day. Sensex added 214 points to settle at 31497 while Nifty finished at 9860, up 71 points. BSE mid-cap and small-cap indices gained 0.8% and 0.5% respectively. BSE Consumer Durable index climbed 2.2%, becoming top gainer among the sectoral indices, followed by 1.5% higher Energy index. Power and Capital Goods indices were the top losers, down 0.5% and 0.2% respectively.

FIIs net sold stocks worth Rs 693 cr but net bought index futures and stock futures worth Rs 324 cr and 1745 cr respectively. DIIs were net buyers to the tune of Rs 1552 cr.

Rupee depreciated 22 paise to end at 65.50/$.

Ashok Leyland's September sales rose 27.5% to 15370 units. Escorts reported 34% jump in tractor sales at 10144 units. TVS Motors posted 23% growth at 3.60 lakh units. M & M reported 16% rise in total sales at 53663 units while tractor sales soared 49% to 45563 units. Hero Motocorp sold 7.2 lac units, a growth of 6.8%.

Eight core sectors grew by 4.9% in August, the highest in five months and up from 2.4% in July, on account of robust performance of coal, natural gas and electricity segments

The Nikkei India Manufacturing PMI came in at 51.2 in September, little changed from its August reading.

Government yesterday reduced the basic excise duty on petrol and diesel by Rs 2 per litre with effect from Wednesday.

OUTLOOK

Today morning, Shanghai is shut, Hang Seng and Nikkei are up 0.8% and 0.2% respectively and SGX Nifty is suggesting about 20 points higher start for our market.

20-DMA, placed around 9930, continues to be important immediate resistance, a crossover of which is required for a fresh upmove. 9775, the low made Friday, is the immediate hurdle, below which 9685 would be the major support to eye.

Monetary Policy Committee, led by RBI governor Urjit Patel, is widely expected to leave interest rate unchanged but is expected to cut economic growth forecast and hence the tone of the policy might be dovish.