Positive start on cards; zone of 11,550-11,600 likely to act as stiff resistance!

Karan Dsij
/ Categories: Trending, Pre Morning
Positive start on cards; zone of 11,550-11,600 likely to act as stiff resistance!

In the last session, Indian markets extended their gains for the third straight day, courtesy IT major TCS as it climbed more than 7 per cent and became the first company after Reliance Industries in India to touch the market capitalisation of Rs 10 lakh crore. However, in the second half of the trading session, volatility kicked in and the markets ended the day by trimming some of its gains.

On Tuesday, an early trend from SGX Nifty indicates that the bullish momentum is likely to continue as SGX Nifty is up by 44.50 points, trading at 11,568.50 level. If you recall our Monday’s note, we had mentioned that the level of 11,550 is a profit booking zone and yes, we did see some profit booking around these levels. We once again reiterate that the zone of 11,550-11,600 is a stiff resistance zone and as long as the index does not close above this zone, it’s better to adopt a wait and watch approach.  

The market participants will take cues from the Markit Services PMI data for September, which is scheduled to be released today.

Meanwhile, security in the F&O ban for today is VEDL.  

Asian indices were in a cheerful mood on Tuesday, following a strong close on Wall Street overnight. Hong Kong’s Hang Seng was up by 0.71 per cent and Japan’s Nikkei 225 has advanced 0.44 per cent. China’s Shanghai Composite is closed for a holiday.  

It was a marvellous start on D-Street on Monday as the key benchmark indices opened with a gap-up and thereafter, the indices extended their gains. However, profit-booking emerged at higher levels and the index closed off near the day’s high. The show stoppers of Monday’s session were IT twins namely, TCS and Infosys. In the end, Nifty and Sensex gained 0.76 per cent and 0.71 per cent, respectively. The broader indices ended on a mixed note as Nifty Mid-cap dipped 0.10 per cent, while Nifty Small-cap gained 0.59 per cent. IndiaVIX jumped 7.67 per cent to 19.71. Talking about the sectoral performance, Nifty IT, Nifty Metal, and Nifty Pharma became the top gainers.

At the start of a new week, Wall Street was seen in a jubilant mood amid the ISM non-manufacturing index that beat forecasts and reports that President Trump would be released from the hospital, which helped to calm political uncertainty. All three of the major US stocks market indices soared more than 1.5 per cent with the tech-laden Nasdaq outperforming its counterpart as it ended the day with gains of almost 257 points. Dow settled above the important psychological mark of 28,000 and S&P 500 also closed above the 3,400 mark. European indices too ended the session in the green, cheered by Eurozone retail sales, which grew by a whopping 4.4 per cent MoM in August.

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