17500 IS THE NEXT SUPPORT; 17992 IMMEDIATE HURDLE

 

17500 IS THE NEXT SUPPORT; 17992 IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices nosedived 0.9%-2% as minutes from the Federal Reserve’s July meeting and comments from St. Louis Federal Reserve President James Bullard indicated that the central bank would likely continue hiking rates in the near term.

 

US 10-year treasury yield rose 9 bps to 2.976%. Dollar index jumped 0.6% to 108.10, its highest since July 15. Gold fell 0.7% to $1747 per ounce, extending the losing streak to fifth consecutive session.

 

Brent crude futures settled rose 13 cents to $96.72 a barrel and WTI crude ended 27 cents higher at $90.77.

 

In Europe, FTSE was falt while DAX and CAC fell 1.1% and 0.9% respectively.

 

Japan’s July headline inflation rose to 2.6% from 2.4% in June. That was above expectations of 2.2% and higher than the Bank of Japan’s goal of 2.0%.

 

For the week, Dow eased 0.2% while S & P 500 and Nasdaq fell 1.2% and 2.6% respectively. In Europe, FTSE rose 0.7% but DAX and CAC fell 1.8% and 0.9% respectively. In Asia, Nikkei and Nifty rose 1.3% and 0.3% respectively but Hang Seng and Shanghai dipped 2% and 0.6% respectively.

 

AT HOME

 

Benchmark indices plunged 1.1% each, suffering the worst cut since 22nd June and with Nifty snapping 8-session winning streak. Sensex settled at 59646, down 651 points while Nifty lost 198 points to finish at 17758. Nifty mid-cap and small-cap indices tumbled 1.4% and 1.2% respectively. BSE Realty and Metal indices tumbled 2.1% and 1.8% respectively, becoming top losers among sectoral indices, while Power and Utilities indices were the top gainers, up 0.5% and 0.4% respectively.

 

FIIs net bought stocks worth Rs 1111 cr but net sold index futures and stock futures worth Rs 1647 cr and 1358 cr respectively. DIIs were net sellers to the tune of Rs 1633 cr.

 

Rupee depreciated 10 paise to end at 79.77/$.

 

For the week, Sensex and Nifty rose 0.3% each, extending the winning streak to fifth consecutive week.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are down 0.6% and 0.9% while Shanghai is marginally higher. SGX Nifty is suggesting around 90 points lower start for our market.

 

In Friday's report we had said that 18115, the top made in April, continued to be next upside level to eye while 17700 continued to be immediate support, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a high of 17992, plunged to 17710 before closing at 17758 and is set to open below 17700 today.

 

17500, around which a trendline adjoining bottoms made on 14th July and 27th July is placed, is be the next downside level to eye; 17992, the top made on Friday, is the immediate hurdle. Trading longs should be cut and shorts can be initiated with the stop-loss of 17992.

 

38200 is the downside level to eye for Banknifty; 39759, the top made Friday, is the immediate hurdle.