11251 IS THE IMMEDIATE SUPPORT; 11452-11507 CONTINUES TO BE RESISTANCE ZONE

 

11251 IS THE IMMEDIATE SUPPORT; 11452-11507 CONTINUES TO BE RESISTANCE ZONE

 

WORLD MARKETS

 

US indices nosedived 2.2%-4.1%, extending the losing streak to third straight day as sell-off in technology stocks accelerated. Cumulative three-session loss for Nasdaq stood at more than 10%.

 

Tesla plunged 21% for its largest single-day cut. Chip stocks were also among the biggest losers as tensions between U.S. and China continued to escalate. Boeing fell 6%, weighing on Dow.

WTI crude slipped $3.01, or 7.6%, to settle at $36.76 per barrel while Brent crude dipped more than 5.3% to settle at $39.78. Both hit their lowest levels in nearly 3-months.

European markets fell 0.1%-1.8%. Second-quarter euro zone GDP contracted by 14.7% year-on-year and 11% from the previous quarter, less than initial estimates but still its sharpest decline on record.

 

AstraZeneca shares plunged in extended trading after the company  said a late-stage trial of  its Covid-19 vaccine candidate has been put on hold due to a suspected serious adverse reaction in a participant in the U.K.

 

AT HOME

 

After gaining more than half a percent, Sensex and Nifty slipped nearly a percent from the top of the day to end lower by 0.1% and 0.3% respectively. Sensex settled at 38365, down 51 points while Nifty lost 37 points to finish at 11317. BSE mid-cap and small-cap indices plunged 1.5% and 0.9% respectively. BSE Telecom index nosedived 4%, becoming top loser among the sectoral indices, followed by 3% lower Metal index. IT and Energy indices were the top gainers, up 1.4% and 0.9% respectively.

 

FIIs net sold stocks worth Rs 1057 cr but net bought index futures and stock futures worth Rs 211 cr and 438 cr respectively. DIIs were net buyers to the tune of Rs 620 cr.

 

Rupee depreciated 25 paise to end at 73.59/$.

 

Tension between India and China escalated after both accused each other of firing warning shots at the LAC.

 

OUTLOOK

 

Today morning, Nikkei is off 1.5% while Hang Seng and Shanghai are down 1.1% each. SGX Nifty is suggesting around 50 points lower start for our market.

 

In yesterday's report we had said that 11452-11507, the gap created by Friday's gap-down opening, was the immediate resistance zone to eye while 11300, where 34-DMA is placed, continued to be important immediate support to eye on closing basis.

 

Nifty, after touching a high of 11437, slipped to end at 11317 and is set to open below 11300 today. While on Monday Nifty was able to hold on to 34-DMA on closing basis, it would be interesting to see whether it is able to repeat the same today.

 

Meanwhile, 11251, the bottom made on Monday, would be the immediate support to eye below which, 11111, the bottom made on 14th August, would be the next support.

 

11452-11507, the gap created by Friday's gap-down opening, continues to be immediate resistance zone.