15632 IS NEXT SUPPORT; 15836-15882 IMMEDIATE RESISTANCE ZONE

 

15632 IS NEXT SUPPORT; 15836-15882 IMMEDIATE RESISTANCE ZONE

 

WORLD MARKETS

 

US indices tumbled 1.1%-2.1% as concerns grew over the potential impact of a Covid resurgence on the global economic recovery.

 

The U.S. is averaging about 26,000 daily cases in the last seven days, more than double the average from a month ago. Several countries in Southeast Asia have also been battling a resurgence in infections, and Goldman Sachs recently slashed its 2021 growth forecasts for most of the region. Several major European countries have reimposed social restrictions, while the U.K. lifted most remaining restrictions on Monday despite reporting a high number of daily cases.

 

The yield on the benchmark 10-year Treasury note fell 11 basis points to 1.189%, its lowest level since February, intensifying fears of an economic slowdown. Dollar index inched up 0.2% to 92.868.Spot gold shed 0.2% to $1,807.59.

 

U.S. oil plunged 7.5% to $66.42 per barrel for its worst day since September 2020 while Brent dipped 6.8% to $68.62 per barrel as OPEC and its allies agreed to raise output, and as the delta Covid variant threatens global demand.

 

European markets plunged 2.3%-3.3%.

 

AT HOME

 

Benchmark indices nosedived 1.1% each, suffering the biggest fall after 30th April, 2021. Sensex settled at 52553, down 586 points while Nifty lost 171 points to finish at 15752. Nifty mid-cap index fell 0.8% while small-cap index managed to end marginally in the green.  BSE Bankex and Finance indices nosedived 1.8% each, becoming top gainers among the sectoral indices while Realty and Healthcare indices were the top gainers, up 0.2% each.

 

FIIs net sold stocks, index futures and stock futures worth Rs 2199 cr, 2069 cr and 808 cr respectively. DIIs were net buyers to the tune of Rs 1048 cr.

 

Rupee depreciated 31 paise to close at 74.87/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.2%-0.6% and SGX Nifty is suggesting around 20 points lower start for our market.

 

In yesterday's report we had said that the low made during first hour would be the important support to eye, upon breach of which, 15632, the low made on 9th July, would be the crucial support to eye.

 

Nifty broke first hour low and plunged all the way to 15707 before closing at 15752.

 

15632, the low made on 9th July is the next important support to eye.

 

15836-15882, the gap created by yesterday's gap-down opening, would work as immediate resistance zone.