17576-17800 CONTINUES TO BE IMMEDIATE RANGE

 

17576-17800 CONTINUES TO BE IMMEDIATE RANGE

 

WORLD MARKETS

 

Dow and S & P 500 gained 0.2% and 0.2% respectively while Nasdaq fell 0.2% for its fourth straight negative session.

 

The House passed a bill that would suspend the U.S. debt ceiling after Treasury Secretary Janet Yellen told House Speaker Nancy Pelosi that Congress had until Oct. 18 to raise or suspend the debt ceiling. However, Republicans in the Senate have said they will reject the legislation.

 

The number of home sales pending in August rose 8.1%, well above the 1.2% consensus.

 

US 10-year treasury yield fell about 1 basis point to 1.527%. The dollar index rose for the fourth consecutive day, up 0.4% to 94.112, its highest since early November last year. Spot gold fell  0.7% to $1,722.50 per ounce.

 

Brent crude fell 51 cents, or 0.6%, to $78.58 per barrel, while US oil declined 45 cents, or 0.6%, to $74.84 per barrel. U.S. crude stockpiles rose by 4.6 million barrels last week, exceeding expectations.

 

In Europe, FTSE climbed 1.1% while DAX and CAC gained 0.8% each. Eurozone economic sentiment index hit 117.8 in September from 117.6 in August, following a record high 119.0 in July.

 

AT HOME

 

After falling around eight tenth of a percen in the initial trade, Sensex and Nifty rebounded to end lower by 0.4% and 0.2% respectively. Sensex settled at 59413, down 254 points while Nifty lost 37 points to finish at 17711. Nifty mid-cap and small-cap indices however ended with decent gains of 1.1% and 0.4% respectively. BSE Utilities and Power indices soared 3.9% and 3.5% respectively, becoming the top gainers among the sectoral indices while Finance and FMCG indices were the top losers, down 0.7% and 0.6% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 1896 cr, 1572 cr and 3676 cr respectively. DIIs were net buyers to the tune of Rs 3262 cr.

 

Rupee depreciated 11 paise to end at 74.15/$.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are down nearly half a percent while Shanghai is up half a percent. SGX Nifty is suggesting around 50 points lower start for our market.

 

In yesterday's report we had said that 17576, the low made Tuesday, was the immediate support while 17800 was the immediate hurdle on the hourly chart.

 

Nifty, after touching a low of 17608 in the initial trade, surged to 17781 but slipped from there to end at 17711.

 

17800 continues to be the immediate hurdle on the hourly chart, above which, 17900-17950 would be the bigger resistance zone to eye.

 

17576, the low made Tuesday, continues to be immediate support, below which, 20-DMA, placed around 17500, would be the next downside level to eye.

 

37315, the low made Tuesday, continues to be immediate support for Banknifty, below which, 36800-37000 would be the next support area; 38377, the top made Tuesday, continues to be immediate hurdle.

 

17500 BELOW 17576; 17800 IS THE IMMEDIATE HURDLE

 

17500 BELOW 17576; 17800 IS THE IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices nosedived 1.6%-2.8%, with the Nasdaq suffering its worst fall since March, as a spike in bond yield and debt ceiling debate in Washington weighed on equities.

US 10-year treasury yield rose 6.2 bps to 1.546% The U.S. dollar index rose 0.3% to 93.719 and hit its highest level in more than 10 months. Spot gold fell 0.8% to $1,735.54 per ounce, its lowest in seven weeks.

 

Meanwhile, lawmakers must act on a funding plan before the government faces a shutdown Friday.

 

Fed Chair Powell said to the Senate Banking Committee that inflation could persist longer than expected as a result of supply chain issues and reopening pressures.

 

July S&P/Case-Shiller home price index rose 19.7% y-o-y. The Conference Board consumer confidence reading came in at 109.3, below the 114.9 expected.

 

Brent, after topping $80 for the first time since October, reversed to end 0.6% lower at $79.09 per barrel. WTI finished the day at $75.29 per barrel, for a loss of 0.21%.

 

Various firms downgraded China’s GDP forecasts amid a power crunch. Goldman Sachs slashed its China GDP growth expectations to 7.8%, from 8.2% earlier while Nomura cut its forecast to 7.7% from 8.2%.

 

European markets fell 0.5%-2.6%. Germany's GFK consumer sentiment index for October climbed to 0.3 points from a revised -1.1 points for September, outstripping a forecast for -1.6.

 

AT HOME

 

After a positive start, benchmark indices nosedived a percent and half but recouped more than half of the losses in last hour to end lower by nearly two third of a percent. Sensex settled at 59667, down 410 points while Nifty lost 106 points to finish at 17748. Nifty mid-cap and small-cap indices fell 0.7% and 0.5% respectively. BSE Realty and Telecom indices tumbled 3% and 2.6% respectively, becoming the top losers among the sectoral indices while Utilities and Power indices were the top gainers, up 1.7% and 1.5% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 1958 cr, 2205 cr and 2341 cr respectively. DIIs were net buyers to the tune of Rs 161 cr.

 

Rupee depreciated 20 paise to end at 74.04/$.

 

OUTLOOK

 

Today morning, Nikkei is down 2.6% while Hang Seng and Shanghai are off 1% and 1.4% respectively. SGX Nifty is suggesting around 120 points lower start for our market.

 

In yesterday's report we had said that a crossover of 17950 hurdle was required for a fresh upmove and had reiterated the advise of holding on to long positions with the stop-loss of 17610.

 

Nifty, after touching a high of 17913 in the initial trade, plunged to 17576 before closing at 17748 and is set to open near 17650 today.

 

17576, the low made yesterday, is the immediate support, below which, 20-DMA, placed around 17500, would be the next downside level to eye.

 

17800 is the immediate hurdle on the hourly chart, above which, 17900-17950 would be the bigger resistance zone to eye.

 

38315, the low made yesterday, is the immediate support for Banknifty, below which, 36800-37000 would be the next support area; 38377, the top made yesterday, is the immediate hurdle.

 

STAY LONG WITH THE STOP-LOSS OF 17610

 

STAY LONG WITH THE STOP-LOSS OF 17610

 

WORLD MARKETS

 

Dow rose 0.2% while S & P 500 and Nasdaq fell 0.3% and 0.5% respectively as a rise in bond yields weighed on growth pockets in the market.

 

Fueled by economic optimism and inflation fears, US 10-year treasury yield briefly topped 1.5%, its highest level since June, before paring back some of the gains to settle 2.8 bps higher at 1.489%. Dollar index rose 0.1% to 93.37. Spot gold was down 0.1% at $1,748.86 per ounce.

 

August durable goods orders rose 1.8%, well above expectations thanks to a big jump in the transport sector. July reading was also revised higher.

 

Meanwhile, Lawmakers must pass a new budget by the end of September to avoid a shutdown, and also figure out a way to increase or suspend the debt ceiling in October before the U.S. would default on its debt for the first time. Markets are also keeping an eye on Thursday's House vote on the $1 trillion bipartisan infrastructure bill already approved by the Senate.

 

Meanwhile, in prepared remarks set to be delivered today, Fed Chair Powell said that inflation could persist longer-than-expected.

 

Brent crude climbed 1.84%, or $1.44, to settle at $79.53 per barrel, while U.S. Oil settled $1.47, or 2%, higher at $75.45 per barrel.

 

Main European markets gained 0.2%-0.3%. ECB President Christine Lagarde said in remarks to a European Parliament committee that euro zone inflation could exceed the bank’s projections but price increases would likely be temporary. Poor showing for Germany’s far-left Die Linke party, meant that a fully left-leaning coalition was now out of the question.

 

AT HOME

 

After rising half a percent at the open, benchmark indices gave away all the gains through the session to end little changed. Sensex settled at 60077, up 29 points while Nifty added 2 points to finish at 17855. Nifty mid-cap index was flat while small-cap index eased 0.1%. BSE Auto and Realty indices soared 3.1% and 2.9% respectively, becoming top gainers among the sectoral indices while IT and Teck indices tumbled 2.3% and 2% respectively, becoming the top losers.

 

FIIs net sold stocks and stock futures worth Rs 595 cr and 318 cr respectively but net bought index futures worth Rs 572 cr. DIIs were net buyers to the tune of Rs 1398 cr.

 

Rupee depreciated 15 paise to end at 73.84/$.

 

OUTLOOK

 

Today morning, Hang Seng and Shanghai are up 1% and 0.2% respectively while Nikkei is of 0.7%. SGX Nifty is suggesting around 25 points higher start for our market.

 

In yesterday's report we had said that 18050-18100 was the next target zone to eye and had advised holding on to long positions with the stop-loss of 17610.

 

Nifty, after touching a high of 17943 in the initial trade, slipped to end at 17855.

 

Upon crossover of 17950, around which Nifty is finding resistance for last two sessions, 18100, where a rising trendline adjoining recent tops is placed, would be the next upside target to eye.

 

17646-17610, the gap created by last Wednesday’s gap-up opening, continues to be immediate support area, and trading longs can be held on to with the stop-loss of 17610.

 

39000, followed by 39700, are the upside levels to eye for Banknifty. 37400 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

STAY LONG WITH THE STOP-LOSS OF 17610

 

STAY LONG WITH THE STOP-LOSS OF 17610

 

WORLD MARKETS

 

Dow and S & P 500 ended marginally higher while Nasdaq was little changed on Friday.

 

Bitcoin and technology stocks were negatively impacted after China’s central bank declared all cryptocurrency-related activities illegal.

 

Shares of China Evergrande Group in Hong Kong fell nearly 12% on reports that Chinese authorities have told local officials to prepare for the potential demise of Evergrande.

 

U.S. new-home sales increased for the month of August for the second straight month.

 

US 10-year treasury yield gained 4 bps to 1.453%. Dollar index eased slightly to 93.068. Spot gold rose 0.2% to $1,746.84 per ounce.

 

Brent crude rose 84 cents, or 1.1%, to settle at $78.09 a barrel, while WTI crude rose 68 cents, or 0.9%, to $73.98.

 

European markets fell 0.4%-1%. German business sentiment fell for the third consecutive month in September, a survey from the IFO Institute showed.

 

For the week, Dow and S & P 500 rose 0.6% and 0.5% respectively, with the former snapping 3-week losing streak while Nasdaq was little changed.

 

AT HOME

 

After gaining 0.7% in the initial trade, benchmark indices gave away more than half of the gains to end modestly higher. Sensex crossed 60000 milestone for the first time to settle at 60048, up 163 points while Nifty added 30 points to finish at 17853. Nifty mid-cap index fell 0.8% while small-cap index inched up 0.1%. BSE Telecom and Realty indices climbed 2.8% and 1.7% respectively, becoming top gainers among the sectoral indices while Metal index tumbled 2.3%, becoming the top loser, followed by 1.4% lower Healthcare index.

 

FIIs net bought stocks worth Rs 442 cr but net sold index futures and stock futures worth Rs 315 cr and 759 cr respectively. DIIs were net sellers to the tune of Rs 516 cr.

 

Rupee depreciated 5 paise to end at 73.69/$.

 

For the week, Sensex and Nifty gained 1.9% and 1.5% respectively, extending the winning streak to fifth consecutive week.

 

OUTLOOK

 

Today morning, Hang Seng and Nikkei are up 0.4% and 0.3% respectively while Shanghai is little changed. SGX Nifty is suggesting around 100 points higher start for our market.

 

In Friday's report we had 18000-18050 was the next target zone for Nifty and had advised trailing the stop-loss in long positions to 17600.

 

Nifty, after touching a high of 17948, slipped to end at 17853 but is set to open near 17950 today.

 

18050-18100, where an upward sloping trendline adjoining recent tops is placed, continues to be the next target zone to eye. Above 18100, 18250 would be the next upside level to eye.

 

17646-17610, the gap created by Wednesday’s gap-up opening, is the immediate support area, and trading longs can be held on to with the stop-loss of 17610.

STAY LONG WITH THE STOP-LOSS OF 17600

 

STAY LONG WITH THE STOP-LOSS OF 17600

 

WORLD MARKETS

 

US indices surged 1%-1.5%, extending Wednesday's upmove, after the Fed statements which were taken positively by the markets and helped by fading concerns over China’s cash-strapped property developer Evergrande.

 

Weekly jobless claims for the week ended Sept. 18 totaled 351,000, topping the 320,000 estimate.

 

US 10-year treasury yield jumped 10 bps to 1.434%, rising above 1.4% for the first time since July. Dollar index fell 0.5% to 93.037. Spot gold declined 0.9% to $1,751.56 per ounce.

 

Brent crude advanced 1.4% to settle at $77.25 a barrel while WTI crude rose 1.5% to $73.3 per barrel.

 

In Europe, FTSE eased 0.1% while DAX and CAC gained nearly a percent. The Bank of England kept monetary policy unchanged and downgraded economic growth projections for the third quarter of this year.

 

AT HOME

 

Benchmark indices soared 1.6% each to hit fresh record highs. Nifty had its best day in 4-months while Sensex gained the most after 3rd August. Sensex settled at 59885, up 958 points while Nifty added 276 points to finish at 17823. Nifty mid-cap and small-cap indices climbed 1.5% and 0.8% respectively with the former making a record high on closing basis. Except 0.1% lower FMCG index, all the BSE sectoral indices ended in green, with Realty index again leading the tally, up 8.7%, followed by 2.3% higher Bankex.

 

FIIs net bought stocks, index futures and stock futures worth Rs 358 cr, 742 cr and 651 cr respectively. DIIs were net buyers to the tune of Rs 1173 cr.

 

Rupee appreciated 23 paise to end at 73.64/$.

 

OUTLOOK

 

Today morning, Nikkei is up nearly 2% but Hang Seng and Shanghai are down 0.5% and 0.2% respectively. SGX Nifty is suggesting a flattish start for our market.

 

In yesterday's report we had said that 17623, the top made Monday, continued to be immediate hurdle, above which, 17793, the top made last week, would be the next target to eye.

 

Nifty crossed 17623 hurdle and surged all the way to 17844 before closing at 17823.

 

18000-18050, where a rising trendline adjoining recent tops is placed, is the next target zone to eye. Above 18050, 18200-18250 would be the next target area.

 

17600 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

38113, the top made last week, is the upside level to eye for Banknifty; 37150 is the immediate support.

 

17793 ABOVE 17623; 17326 IS THE IMMEDIATE SUPPORT

 

17793 ABOVE 17623; 17326 IS THE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices climbed 1% each, with the Dow and S & P 500 snapping 4-day losing streak and posting best day in 2-months, after the Federal Reserve said it will "soon" begin reducing stimulus measures, suggesting that the US economy is in shape to withstand less support from the central bank.

 

Fed Chair Powell said tapering of bond purchases could be done by mid-2022 following a statement from the central bank that also signaled interest rate increases may follow more quickly than expected. The central bank also downgraded its GDP growth estimate for 2021 to 5.9% from 7% previously.

 

Existing-home sales dipped 2% month over month in August, but the median home price was up almost 15% compared with the same period last year.

 

The House of Representatives passed legislation that avoid a government shutdown and suspend the debt ceiling until December 2022. However, the bill now moves to the Senate, where Democrats have a much slimmer majority.

 

The yield on the 10-year and 30-year treasury notes dropped 1.7 and 3.5 bps respectively to 1.307% and 1.822% respectively. Short-term rates, on the other hand, moved higher. Dollar index strengthened 0.3% to 93.46. Spot gold fell 0.4% to $1,767.38 per ounce.

 

WTI crude climbed $1.74, or 2.5%, to reach $72.23 per barrel while Brent crude futures climbed $1.54, or 2%, to $75.89 a barrel after U.S. crude stocks fell to their lowest levels in three years as refining activity recovered from recent storms.

 

European markets gained 1%-1.5%.  Euro zone consumer confidence rose to 1.3 points in September from -4.0 in August, better than the expected -5.8 figure.

 

Meanwhile, China Evergrande Group's main unit said it would make the coupon payment on its Shenzhen-traded bond on time on Sept. 23, but the developer has not indicated whether it will be able to pay $83.5 million in interest due on its March 2022 bond on Thursday.

 

AT HOME

 

It was a day of consolidation as benchmark indices ended marginally in the red after a rangebound but choppy session. Sensex settled at 58927, down 78 points while Nifty lost 15 points to finish at 17546. Nifty mid-cap and small-cap indices however surged 1.7% and 1.4% respectively. BSE Realty index soared 8.4%, becoming the top gainer among the sectoral indices, followed by 1.9% higher Consumer Discretionary Goods & Services indices. Bankex and Finance indices were the top losers, down 0.8% and 0.6% respectively.

 

FIIs net sold stocks and index futures worth Rs 1943 cr and 958 cr respectively but net bought stock futures worth Rs 1529 cr. DIIs were net buyers to the tune of Rs 1850 cr.

 

Rupee depreciated 26 paise to end at 73.87/$.

 

OUTLOOK

 

Today morning, Nikkei is shut while Hang Seng and Shanghai are up 1.8% and 0.9% respectively. SGX Nifty is suggesting around 90 points higher start for our market.

 

In yesterday's report we had said that 17623, the top made Monday, continued to be the immediate hurdle while 17300-17250 continued to be support zone.

 

Nifty, after touching a high of 17610, slipped to end at 17546. The benchmark is set to open above 17600 today.

 

17623, the top made Monday, continues to be the immediate hurdle, above which, 17793, the top made last week, would be the bigger resistance to eye.

 

17326, the bottom made Tuesday, is the immediate support.

 

37340, the top made Tuesday, is the immediate hurdle for Banknifty, upon crossover of which, 37800 would be the next upside level to eye; 36350-36150 is the support zone.

ALL EYES ON THE FED

 

ALL EYES ON THE FED

 

WORLD MARKETS

 

After opening with gains of nearly a percent, Dow and S & P 500 slipped to end marginally in the red while Nasdaq managed to gain 0.2%.

 

Fed finishes its two-day policy meeting today and markets are awaiting cues on central bank’s plans to taper its bond buying. The Fed will also release its quarterly economic forecasts, the so-called dot plot, along with the statement on interest rates. Fed Chair Powell will have a press conference after the announcements.

 

US 10-year treasury yield ticked up 1.4 basis points to trade at 1.323%. Dollar index was down nearly 0.1% at 93.233. Spot gold rose 0.7% to $1,776 per ounce.

 

Brent crude gained 44 cents, or 0.6%, to settle at $74.36 per barrel and WTI future gained 27 cents, or 0.4%, to settle at $70.56.

 

European markets gained 1.1%-1.5%.

 

AT HOME

 

After falling four tenth of a percent, benchmark indices soared 1.4% from the bottom of the day to end higher by nearly a percent, recouping most of the yesterday's losses. Sensex settled at 59005, up 514 points while Nifty added 165 points to finish at 17562. Nifty mid-cap index gained 0.6% but small-cap index fell 0.1%. BSE Realty and Metal indices climbed 3.5% and 2.6% respectively, becoming top gainers among the sectoral indices, while Utilities and Power indices were the top losers, down 0.6% and 0.5% respectively.

 

FIIs net bought stocks and index futures worth Rs 1042 cr and 284 cr respectively but net sold stock futures worth Rs 177 cr. DIIs were net buyers to the tune of Rs 2168 cr.

 

Rupee appreciated 12 paise to end at 73.61/$.

 

OUTLOOK

 

Markets in Hong Kong and South Korea are closed today for holidays. Other Asian markets are trading with cuts of 0.2%-0.4%. SGX Nifty is suggesting a flattish start for our market.

 

In yesterday's report we had said that 17300-17250 continued to be next support zone while 17623, the top made Monday, was the immediate hurdle.

 

Nifty, after touching a low of 17326, reversed to touch a high of 17578 before closing at 17562.

 

17623, the top made Monday, continues to be the immediate hurdle, above which, 17793, the top made last week, would be the bigger resistance to eye; 17300-17250 continues to be support zone.

 

37450-37500 is the immediate resistance zone for Banknifty, upon crossover of which, 37800, 38100 would be subsequent upside levels to eye; 36350-36150 is the support zone.

 

17300-17250 IS THE NEXT SUPPORT ZONE; 17623 IMMEDIATE HURDLE

 

17300-17250 IS THE NEXT SUPPORT ZONE; 17623 IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices nosedived 1.7%-2.2% on concerns including the imminent Federal Reserve meeting, liquidity crisis at China Evergrande Group, the lingering delta variant and the debt ceiling deadline. S & P 500 fell the most since May 12 while Dow had its biggest one-day drop since July 19.

 

Fed begins its two-day policy meeting today and markets are awaiting cues on central bank’s plans to taper its bond buying.

 

Hang Seng index plunged 4% as China’s second-largest property developer, Evergrande, is on the brink of default and fear is that the pain that could come from its collapse would extend beyond China. A deadline for an $83.5 million interest payment on one of its bonds is due today, and the company has $305 billion in liabilities.

 

Delta variant remains a global health threat as the colder months approach and vaccination hesitancy persists among some Americans. Markets are also concerned about the deadline to raise the debt ceiling and possible tax increase.

 

US 10-year treasury yield dropped 6 basis points to 1.311%. Dollar index rose 0.025%. Spot gold rose 0.5% to $1,762.66 per ounce.

 

Brent crude fell $1.42, or 1.9%, to $73.92 a barrel while while WTI declined $1.68 or 2.3% to $70.29.

 

European markets fell 0.9%-2.6%.

 

AT HOME

 

Sensex, Nifty nosedived 0.9% and 1.1% respectively, suffering the biggest fall in 2-months. Sensex settled at 58490, down 525 points while Nifty lost 188 points to finish at 17396. Nifty mid-cap and small-cap indices tumbled 2.2% and 1.7% respectively, with the former having worst day in more than 5 months. Except 0.7% higher FMCG index, all the BSE sectoral indices ended in red, with Metal index being the top loser, down 6.8%, followed by 4.1% lower Basic Materials index.

 

FIIs net bought stocks worth Rs 93 cr but net sold index futures and stock futures worth Rs 2560 cr and 653 cr respectively. DIIs were net sellers to the tune of Rs 1627 cr.

 

Rupee depreciated 26 paise to end at 73.73/$.

 

OUTLOOK

 

Markets in mainland China and South Korea are closed today for a holiday. Nikkei is down nearly 2% while Hang Seng is marginally higher. SGX Nifty is suggesting around 40 points higher start for our market.

 

In yesterday's report we had said that 17793, the top made Friday, was the immediate hurdle to eye while immediate support on the hourly chart was placed around 17450, upon breach of which, 17300-17250 would be the next support zone.

 

Nifty broke 17450 support and plunged all the way to 17362 before closing at 17396.

 

17300-17250 continues to be next support zone to eye.

 

17623, the top made yesterday, is the immediate hurdle, above which, 17793, the top made last week, would be the bigger resistance to eye.

 

36850 continues to be immediate support for Banknifty, below which, 36350-36150 would be the next support zone; 38113, the top made Friday, is the immediate hurdle.