10138-9930 IS THE IMMEDIATE RANGE

10138-9930 IS THE IMMEDIATE RANGE

WORLD MARKETS                             

US indices gained 0.2%-0.3% on Friday with the S & P 500 breaking above the 2500 mark for the first time.

Retail sales for August fell 0.2% as against expectation of a rise of 0.1%. Industrial production fell 0.9% month-on-month.

Pound surged nearly 1.5% to trade above the $1.36 mark after Bank of England policymaker Gertjan Vlieghe said data "increasingly" suggested that it would be timely to raise interest rates in the "coming months."

In Europe, FTSE plunged 1.1% while other markets fell 0.2%-0.4%. Wages in the euro zone grew at 2% y-o-y, their fastest pace in two years. FTSE was dragged down by soaring pound and an explosion at a tube train in London.

For the week US indices gained 1.4%-2.2% with the Dow notching its biggest weekly gain since the week of December 9.  In Europe, FTSE plunged 2.2% but DAX and CAC gained 1.8% and 2% respectively. In Asia Nikkei soared 3.3%, Hang Seng rose 0.5% but Shanghai fell 0.4%.

US President Trump referred to North Korean leader Kim Jong Un as "Rocket Man" in a tweet on Sunday after agreeing with South Korean President Moon Jae-in about putting more pressure on the North in a phone call.

AT HOME

Benchmark indices ended little changed after a roller coaster session. Sensex settled at 32273, up 31 points while Nifty lost 1 point to finish at 10085. BSE mid-cap index lost 0.3% while small-cap index gained 0.4%. BSE IT and Teck indices gained 1% and 0.8% respectively, becoming top gainers among the sectoral indices while Power and Telecom indices were the top losers, down 0.9% and 0.6% respectively.

FIIs net bought stocks and index futures worth Rs 419 cr and 134 cr respectively but net sold stock futures worth Rs 1123 cr. DIIs were net buyers to the tune of Rs 126 cr.

Rupee appreciated 5 paise to end at 64.08/$.

For the week, Sensex and Nifty gained 1.8% and 1.5% respectively with Nifty registering highest ever weekly close.

India's current account deficit, at $14.3 bn, hit a four-year high of 2.4% of GDP in first quarter of the current fiscal. Last year same quarter, deficit stood at 0.1% of GDP. India's trade deficit in August widened to USD 11.64 bn from USD 7.7 bn in same month a year ago. Exports rose 10.29% to USD 23.81 bn and imports surged 21% to USD 35.46 bn.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.3%-1% and SGX Nifty is suggesting about 40 points higher start for our market.

As we have been mentioning for some time, 10138, the top made on 2nd August, is the important hurdle, a crossover of which is required for a fresh upmove. Nifty was resisted near this level couple of times last week and finally closed the week at 10085.

A higher opening today would again take it close to this hurdle. Only if this hurdle is decisively taken out, upside till about 10600 would open up.

The trendline adjoining bottoms made in August, which also coincides with 20-DMA, has now moved up to 9930 and is the important immediate support to eye.

This makes 10138-9930 immediate range, a crossover of which, on either side, is required for taking a fresh directional view.