NIFTY SET TO ACHIEVE 8845 TARGET; 8915 NEXT

NIFTY SET TO ACHIEVE 8845 TARGET; 8915 NEXT

WORLD MARKETS

                                                             

US markets were shut yesterday Labor Day holiday. On Friday US indices had risen 0.4% each following a disappointing employment report which reduced the probability of an interest rate hike in September.

European markets, after starting higher, slipped to end flat to modestly lower yesterday as the rally in oil prices faded after a joint statement on stabilizing oil prices from Saudi Arabia and Russia fell short of hopes.

Russia and Saudi Arabia confirmed they had agreed to cooperate to stabilize the oil market and limit output. Crude oil prices initially jumped on the news, but pared gains later. U.S. crude futures settled at $44.44 a barrel, after touching highs of $46.53 earlier, while Brent futures settled at $46.83 after hitting a session high of $49.40.

Markit's final composite Purchasing Managers' Index (PMI) for the euro zone in August fell to the lowest since January 2015 at 52.9, below a flash estimate of 53.3 and July's figure of 53.2. The U.K's Markit/CIPS services Purchasing Managers' Index (PMI) jumped to 52.9 in August from July's seven-year low at 47.4 Sterling traded around a seven-week high against the U.S. dollar after this data.

AT HOME

After trading in a narrow range for better part of the day, benchmark indices spike up in the late noon trade to end higher by four tenth of a percent, with Sensex and Nifty closing at the highest level since 16th April 2015 and 13th April 2015 respectively. Sensex added 109 points to settle at 28532 while Nifty finished at 8810, up 35 points. BSE mid-cap and small-cap indices gained 0.5% and 0.4% respectively. BSE Telecom index climbed 1.5%, becoming top gainer among the sectoral indices, followed by 1% each gain in Auto and Realty indices.

FIIs net bought stocks and stock futures worth Rs 231 cr and 401 cr respectively but net sold index futures worth Rs 399 cr. DIIs were net buyers to the tune of Rs 135 cr.

Rupee appreciated 13 paise to end at 66.82/$.

For the week, Sensex and Nifty gained 2.7% and 2.8% respectively.

Urjit Patel took the charge as the 24th Governor of Reserve Bank effective September 4.

OUTLOOK

Today morning Asian markets are trading flat to modestly higher and SGX Nifty is trading above 8900, which is higher by more than 60 points compared to Friday's close of Nifty future.

Readers would recall that ever since Nifty broke out of 8730-8540 consolidation, we have been working with targets of 8845 followed by 8915.

On Friday, Nifty closed at 8810 and a gap up opening today would see the benchmark achieve the first of the above mentioned targets and closing in on the second. Above 8915, 9119 the highest high till date, made in March 2015, would be the next major target to eye.

Immediate support on the hourly chart has moved up to 8740, with the stop-loss of which, trading longs should be held on to.