CONSOLIDATION CONTINUES; 9988-9860 IS THE IMMEDIATE RANGE

CONSOLIDATION CONTINUES; 9988-9860 IS THE IMMEDIATE RANGE

WORLD MARKETS                             

US indices ended mixed with modest changes

Financials fell as the yield on the U.S. 10-year Treasury note slipped to to 2.05%.

The Senate approved a package that includes Hurricane Harvey recovery funds, a debt ceiling extension and temporary government funding.

Initial claims for state unemployment benefits soared by 62,000 to a seasonally adjusted 298,000 for the week ended Sept. 2, the highest level since April 2015

The European Central Bank held interest rates steady at 0 percent. ECB President Draghi hinted at starting to reduce the central bank's bond-buying program as early as next month. Draghi also gave an upbeat forecast on the region's economy.

In reaction, the euro spiked to $1.204 against the dollar.The dollar index hit low of 91.405, its lowest level since Jan. 6, 2015.

Brent crude rose 29 cents to $54.49 a barrel and WTI crude shed 7 cents to settle at $49.09 due to a larger-than-expected build in U.S. inventories.

European markets, except 0.4% lower Italy, gained 0.3%-0.7%.

AT HOME

After rising about half a percent in the initial trade, benchmark indices gave away most of the gains through the choppy session to end flat to marginally higher. Sensex settled at 31663, up 1 point while Nifty added 19 points to finish at 9935. BSE mid-cap and small-cap indices gained 0.8% and 0.5% respectively. BSE Metal and Auto indices climbed 1.4% and 0.8% respectively, becoming top gainers among the sectoral indices while Telecom and Energy indices were the top losers, down 0.8% and 0.4% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 564 cr, 107 cr and 275 cr respectively. DIIs were net buyers to the tune of Rs 245 cr.

Rupee appreciated 5 paise to end at 64.05/$.

OUTLOOK

Today morning, Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 15 points higher start for our market.

As we have been mentioning, Nifty is in a consolidation mode after testing a low of 9685 on 11th August. The range of this consolidation is getting narrower as the upward sloping trendline adjoining recent bottoms made on daily chart is now placed around 9860, which also coincides with the bottom made on Monday. 9988, the top made on Monday, continues to be immediate hurdle, a crossover of which is required for a fresh upmove. If that happens, 10138, the top made in August, would be the next target to eye.