16200 BELOW 16450; 16750-16800 IS THE RESISTANCE ZONE

 

16200 BELOW 16450; 16750-16800 IS THE RESISTANCE ZONE

 

WORLD MARKETS

 

US indices fell 0.7%-1.9% after Walmart cut its earnings forecast, sending other retail shares lower.

 

Walmart cut its quarterly and full-year profit estimates because of rising food inflation.

 

The International Monetary Fund cut its global GDP forecasts for 2022 and 2023. It now expects growth to come in at 3.2% this year, 0.4% lower than its April projection.

 

US 10-year treasury yield fell 2 bps to 2.8%. Dollar index rose 0.7% to 107.20. Gold fell 0.2% to $1716 per ounce.

 

Brent crude inched a fourth of a percent lower to $104.60 per barrel. WTI crude fell 0.8% to $95.49 per barrel.

 

In Europe, FTSE was flat while DAX and CAC fell 0.9% and 0.4% respectively.

 

AT HOME

 

Benchmark indices slipped nine tenth of a percent, extending the losing streak to second straight day. Sensex settled at 55268, down 498 points while Nifty lost 147 points to finish at 16483. Nifty mid-cap and small-cap indices tumbled 1.2% and 1.5% respectively. All the BSE sectoral indices ended in red, with IT and Teck indices leading the losses, down 2.8% and 2.2% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 1548 cr, 924 cr and 632 cr respectively. DIIs were net buyers to the tune of Rs 999 cr.

 

Rupee depreciated 5 paise to end at 79.78/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.1%-1% with Hang Seng leading the losses. SGX Nifty is suggesting around 20 points lower start for our market.

 

In yesterday's report we had said that 16794, the top made in June, continued to be immediate hurdle, while 16460 continued to be immediate support on the hourly chart, with the stop-loss of which, trading longs could be held on to.

 

Nifty fell to 16463 before closing at 16483.

 

16450-16460 continues to be immediate support zone, upon breach of which, 20-DMA, placed around 16200, would be the next downside level to eye; 16750-16800 is the resistance zone.

 

36000 continues to be immediate support for Banknifty; 37000 is immediate hurdle.

 

Tata Motors, Maruti and Bajaj Finance will report their quarterly earnings today.