16600 BELOW 16788; 17150 IS THE IMMEDIATE HURDLE

 

16600 BELOW 16788; 17150 IS THE IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices nosedived 1.5%-2.8% on concerns that the Fed will keep raising rates to fight inflation and as Apple led technology stocks lower on demand concerns. S & P 500 closed at new 2022 low.

 

Jobless claims for the week ended Sept. 24 totaled 193,000, hitting a five-month low. U.S. GDP fell 0.6% y-o-y in the second quarter, compared with a much larger contraction of 1.6% in the first quarter.

 

Apple plunged 4.9% to lead the losers as the tech giant has faced reports of declining demand for its new products, specifically the iPhone 14 series.

 

US 10-year treasury yield rose 6 bps to 3.79%. Dollar index fell 0.8% to 111.77. Pound surged 2% against the dollar. Gold inched up 0.1% to $1661 per ounce.

 

Brent crude futures settled at $88.49 per barrel for a loss of 0.9% and WTI futures ended the day 1.1% lower at $81.23 per barrel.

 

European markets fell 1.5%-2.4%. Data showed euro zone economic sentiment fell sharply and by more than expected in September. German inflation jumped to 10.9% this month, far beyond expectations for a reading of 10%.

 

AT HOME

 

After starting a percent higher, Sensex and Nifty plunged through the session end with cuts of 0.3% and 0.2% respectively, extending the losing streak to seventh consecutive session. Sensex settled at 56410, down 188 points while Nifty lost 40 points to finish at 16818. Nifty mid-cap and small-cap indices however gained 0.4% and 0.6% respectively. BSE Metal and Healthcare indices climbed 1.5% and 1.4% respectively, becoming top gainers among the sectoral indices while Utilities and Power indices were the top losers, down 1.4% and 1.3% respectively.

 

FIIs net sold stocks and index futures worth Rs 1599 cr and 1007 cr respectively but net bought stock futures worth Rs 1229 cr. DIIs were net buyers to the tune of Rs 3162 cr.

 

Rupee appreciated 8 paise to end at 81.86/$.

 

India's April-June current account deficit stood at $23.9 bn vs $13.4 bn QoQ. As a percentage of GDP, it stood at 2.8% Vs 0.9% surplus YoY and 1.5% deficit QoQ.

 

Government reduced its H2 borrowing by Rs 10000 cr to 14.21 lk cr.

 

OUTLOOK

 

China's September Manufacturing PMI has come in at 50.1, beating estimate of 49.7. Composite PMI stood at 50.9.

 

Today morning, Asian markets are trading with cuts of 0.1%-1.4% and SGX Nifty is suggesting around 40 points lower start for our market.

 

In yesterday's report we had said that 16800, where 20-week moving average is placed, continued to be important immediate support while 17200-17290, the gap created by Monday's gap-down opening, was the resistance zone.

 

Nifty, after touching a high of 17026, plunged to 16788 and closed at 16818.

 

16788, the low made yesterday, which coincided with 20-week moving average, continues to be immediate support, upon breach of which, 16600 would be the next downside level to eye; 17150 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.

 

For Banknifty, 37250, the low made in August, continues to be the downside level to eye; 38700 is immediate hurdle.

 

RBI's rate-setting panel is liekly to announce a 50 bps repo rate hike at the end of its three-day meeting today. Policy stance may be changed to "Neutral" from "Withdrawal of Accommodation".

 

NIFTY REBOUNDS FROM 20-WEEK MOVING AVERAGE

 

NIFTY REBOUNDS FROM 20-WEEK MOVING AVERAGE

 

WORLD MARKETS

 

US indices surged nearly 2%, with Dow and S&P 500 snapping a six-day losing streak, after the Bank of England said it would buy bonds to stabilize its financial markets, a stunning reversal in the monetary tightening policies implemented by most central banks to combat inflation.

 

US 10-year treasury yield plunged 22 bps to 3.73%. Dollar index tumbled 1.3% to 112.71. Pound rose 1.45% against the dollar. Spot gold climbed 2% to $1,661 per ounce.

 

Oil rose following unexpected drawdown in U.S. crude and fuel stocks. Brent crude futures rose 3.5% to $89.32 and WTI crude futures settled 4.65% higher at $82.15 per barrel.

 

European markets gained 0.2%-0.4%.

 

AT HOME

 

Benchmark indices fell 0.9% each, extending the losing streak to sixth straight session. Sensex settled at 56598, down 509 points while Nifty lost 148 points to finish at 16858. Nifty mid-cap and small-cap indices fell 0.3% and 0.5% respectively. BSE Metal index tumbled 2.3%, becoming top loser among the sectoral indices, followed by 1.5% lower Bankex. Healthcare and IT indices were the top gainers, up 0.5% and 0.3% respectively.

 

FIIs net sold stocks and stock futures worth Rs 2772 cr and 401 cr respectively but net bought index futures worth Rs 104 cr. DIIs were net buyers to the tune of Rs 2544 cr.

 

Rupee depreciated 36 paise to end at 81.94/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.8%-2% and SGX Nifty is suggesting nearly 200 points gap-up start for our market.

 

In yesterday's report we had said that 16880-16800 continued to be next support area and had advised trailing stop-loss in short positions to 17370.

 

Nifty plunged all the way to 16820 before closing at 16858. The benchmark is set to open above 17000 today.

 

16800, where 20-week moving avearge is placed, continues to be important immediate support. 17200-17290, the gap created by Monday's gap-down opening, is the resistance zone.

 

For Banknifty, 37250, the low made in August, is the downside level to eye; 39100 is immediate hurdle.

 

TRAIL STOP-LOSS TO 17370

 

TRAIL STOP-LOSS TO 17370

 

WORLD MARKETS

 

Dow and S & P 500 fell 0.4% and 0.2% respectively while Nasdaq rose quarter of a percent. S & P 500 closed at its lowest level since 2020.

 

Stocks had got off to a positive start after Chicago Fed President Charles Evans said he was getting nervous that the central bank was tightening too, far too fast.

 

US 10-year treasury yield rose 2 bps to 3.947%. Dollar index inched up 0.1% to 114.19. Gold rose 0.4% to $1628.56 per ounce.

 

Brent crude rose 2.6% to $86.27 and WTI crude ended the day 2.3% higher at $78.50 per barrel.

 

European markets fell 0.3%-1.3%.

 

AT HOME

 

After falling nearly half a percent in the morning, benchmark indices recouped most of the losses to end just marginally in the red. Sensex settled at 57107, down 38 points while Nifty lost 9 points to finish at 17007. Nifty mid-cap and small-cap indices gained 0.1% and 0.2% respectively. BSE Oil & Gas index rose 1.2%, becoming top gainer among the sectoral indices, followed by 0.9% higher Energy index. Bankex and Capital Goods indices were the top losers, down 0.8% and 0.7% respectively.

 

FIIs net sold stocks and index futures worth Rs 2824 cr and 990 cr respectively but net bought stock futures worth Rs 1463 cr. DIIs were net buyers to the tune of Rs 3505 cr.

 

Rupee appreciated 4 paise to end at 81.58/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.6%-2% and SGX Nifty is suggesting around 160 points lower start for our market.

 

In yesterday's report we had said that 16978, the low made Monday, which coincided with 200-DMA, was the immediate support, below which, 16880-16800 would be the next support area to eye. We had also said that 17600 was the immediate resistance on the hourly chart, with the stop-loss of which, trading shorts could be held on to.

 

Nifty, after touching a low of 16942, closed at 17007. The benchmark is set to open below 16900 today.

 

16880-16800 continues to be next support area; Immediate hurdle on the hourly chart would move to 17370 after today's gap-down opening, with the stop-loss of which, trading shorts can be held on to.

 

37943, the low made on 29th August, continues to be next support for Banknifty, below which, 37250, the low made in August, would be the downside level to eye; 39700 is the immediate hurdle.

 

NIFTY TESTS 200-DMA SUPPORT

 

NIFTY TESTS 200-DMA SUPPORT

 

WORLD MARKETS

 

US indices fell 0.6%-1.1%, with the S&P 500 notching a new closing low for 2022 and the Dow slipping into a bear market as interest rates continued to surge and turmoil rocked global currencies.

 

US 10-year treasury yield surged 23 bps to 3.926% and 2-year yield rose 14 bps to 4.356%. Dollar index climbed 1% to 114.10. The British pound plunged 4% to an all-time low of $1.0382 before recovering to 1.0685. The euro hit the lowest versus the dollar since 2002. Spot gold fell 1.2% to $1,623.59 per ounce, it's lowest level in 2-1/2 years.

 

Brent crude futures fell 2.1% to $84.32 per barrel and WTI futures fell 2.3% to $76.97 per barrel, a price last seen in early January.

 

In Europe, FTSE was flat while DAX and CAC eased 0.5% and 0.2% respectively.

 

AT HOME

 

Sensex and Nifty tumbled 1.6% and 1.8% respectively, extending the losing streak to fourth straight day and closing at the lowest level after 28th July. Sensex settled at 57145, down 953 points while Nifty lost 311 points to finish at 17016. Nifty mid-cap and small-cap indices nosedived 3.1% and 3.4% respectively. Except 0.1% higher IT index, all the BSE sectoral indices ended in red, with Metal and Realty indices being the top losers, down 4.5% and 4.3% respectively.

 

FIIs net sold stocks worth Rs 5101 cr but net bought index futures and stock futures worth Rs 941 cr and 823 cr respectively. DIIs were net buyers to the tune of Rs 3532 cr.

 

Rupee depreciated 63 paise to end at 81.62/$.

 

OUTLOOK

 

Today morning, Nikkei and Shanghai are up 0.7% and 0.1% respectively while Hang Seng is down 0.3%. SGX Nifty is suggesting around 60 points higher start for our market.

 

In yesterday's report we had said that 17166, the low made on 29th August, was the next support, upon breach of which, 200-DMA, placed around 17000, would be next downside level to eye. We had also advised holding on the short positions with the stop-loss of 17650.

 

Nifty plunged all the way to 16978 before closing at 17016.

 

16978, the low made yesterday, which coincided with 200-DMA, is the immediate support, below which, 16880-16800 would be the next support area to eye; 17600 is the immediate resistance on the hourly chart, with the stop-loss of which, trading shorts can be held on to.

 

For Banknifty, 37943, the low made on 29th August, is the next downside level to eye; 40600 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.

17166 IS THE NEXT SUPPORT; TRAIL STOP-LOSS TO 17650

 

17166 IS THE NEXT SUPPORT; TRAIL STOP-LOSS TO 17650

 

WORLD MARKETS

 

US indices tumbled 1.6%-1.8% on Friday as surging interest rates and foreign currency turmoil heightened fears of a global recession. The Dow notched a new low for the year and closed below 30,000 for the first time since June 17.

 

US 10-year hit an 11-year high of 3.829% earlier in the session but last traded 3 bps lower at 3.691%.  2-year Treasury hit a fresh 15-year record of 4.266% before settling at 4.212%. Dollar index surged 1.6% to 113.02, it's highest level since May 2002.

 

Brent crude futures fell $4, or 4.4%, to $86.46 a barrel, while WTI crude fell $4.45, or 5.3%, to $79.10.

 

In Europe, FTSE and DAX fell 2% each while CAC tumbled 2.3%. The British pound hit a fresh more than three-decade low against the U.S. dollar after U.K. government announced a raft of tax cuts as the country prepares for a recession. Also, UK PMI figures showed the downturn in Britain’s economy worsened this month as companies battled soaring costs and faltering demand. The euro slipped to its lowest level since October 2002, after S&P Global’s flash euro zone Composite PMI fell further in September.

 

For the week, US indices nosedived 4%-5.1% for their fifth negative week in six.

 

For the week, Sensex and Nifty fell 1.3% and 1.2% respectively, extending the losing streak to second straight week.

 

AT HOME

 

Benchmark indices nosedived 1.7% each, extending the losing streak to third straight day and closing at the lowest level after 29th August. Sensex settled at 58098, down 1020 points while Nifty lost 302 points to finish at 17327. Nifty mid-cap and small-cap indices tumbled 2.4% and 2% respectively. All the BSE sectoral indices ended in red, with Utilities and Power indices leading the losses, down 3.5% and 3.4% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 2900 cr, 3373 cr and 2991 cr respectively. DIIs were net buyers to the tune of Rs 299 cr.

 

Rupee depreciated 13 paise to end at 80.99/$.

 

For the week, Sensex and Nifty fell 1.3% and 1.2% respectively, extending the losing streak to second straight week. This was the lowest weekly close after the week ended 29^TH July.

 

OUTLOOK

 

Today morning, Nikkei is down more than 2%, Shanghai is off 0.2% while Hang Seng is flat. SGX Nifty is suggesting nearly 150 points lower start for our market.

 

In Friday's report we had said that 17500-17430 was the next support area  for Nifty and had advisd holding on to short positions with the stop-loss of 17919.

 

Nifty plunged to 17291 before closing at 17327 and is set to open near 17200 today.

 

17166, the low made on 29th August, is the next important support. If that also gives way, 200-DMA, placed around 17000, would be next downside level to eye; 17650 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.

 

For Banknifty, 38800, the low of the September month so far, which also coincides with 78.6% retracement level of the upmove seen after 29th August, is the next support, below which, 37943, the low made on 29th August, would be the next downside level to eye; 40800 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.

 

17500-17430 IS THE SUPPORT AREA; 17919 IS THE HURDLE

 

17500-17430 IS THE SUPPORT AREA; 17919 IS THE HURDLE

 

WORLD MARKETS

 

US indices fell 0.4%-1.4%, extending the losing streak to third consecutive day, over recession fears following the Fed’s latest 75-basis-point rate hike.

 

Weekly jobless claims rose to 213,000 versus expectations for 218,000.

 

US 10-year treasury yield surged 19 bps to 3.718%. Dollar index, after touching a high of 111.81, eased to end marginally lower at 111.27. Gold fell 0.1% to $1671 per ounce.

 

Brent as well as WTI crude rose 0.8% each to $90.58 and $83.69 per barrel.

 

European markets tumbled 1.1%-1.9%. The Swiss National Bank raised its benchmark interest rate to 0.5%. The Bank of England also hiked rates, its seventh consecutive increase with a 50 basis point rise.

 

AT HOME

 

After falling a percent in the first half, Sensex and Nifty recouped half of the losses in second half to end lower by 0.6% and 0.5% respectively, extending yesterday's dip. Sensex settled at 59119, down 337 points while Nifty lost 88 points to finish at 17629. Nifty mid-cap and small-cap indices however gained 0.3% and 0.6% respectively. BSE Bankex and Financial Services indices tumbled 1.4% and 1.2% respectively, becoming top losers among the sectoral indices while FMCG and Consumer Durables indices gained 1.3% and 1% respectively, becoming top gainers. 

 

FIIs net sold stocks and index futures worth Rs 2510 cr and 2438 cr respectively but net bought stock futures worth Rs 691 cr. DIIs were net buyers to the tune of Rs 263 cr.

 

Rupee nosedived 88 paise to end at 80.86/$.

 

OUTLOOK

 

Japan markets are closed today for a holiday. Hang Seng and Shanghai are trading with modest gains while SGX Nifty is suggesting around 75 points lower start for our market.

 

In yesterday's report we had said that 17430, the low made Monday, was the downside level to eye while 17919, the top made Tuesday, continued to be immediate hurdle, with the stop-loss of which, trading shorts could be held on to.

 

Nifty, after touching a low of 17532, rebounded to end at 17630 and is set to open near 17550 today.

 

17500-17430 is the support area to eye for Nifty; 17919, the top made Tuesday, continues to be immediate hurdle, with the stop-loss of which, trading shorts can be held on to.

 

40288, the low made last week, is the next support for Banknifty; 41100-41300 is the immediate resistance zone above which, 41840, the top made last week, would be the next hurdle.

 

17430 IS THE NEXT SUPPORT; 17919 CONTINUES TO BE HURDLE

 

17430 IS THE NEXT SUPPORT; 17919 CONTINUES TO BE HURDLE

 

WORLD MARKETS

 

US indices ended with cuts of 1.7%-1.8% after the Federal Reserve raised rates by 75 basis points and signaled more large increases at its upcoming meetings.

 

The Fed’s new projections showed its policy rate rising to 4.4% by the end of the year, before peaking at 4.6% in 2023 to curb uncomfortably high inflation.

 

US 2-year Treasury yield surged 15 bps to 4.113% and hit highest level since October 2007. 10-year Treasury yield rose to a high of 3.64%, its highest since February 2011. The dollar index hit a fresh 20-year high of 111.63 and was last up 1%% at 111.35. Gold ended half a percent higher at $1673 after a choppy session.

 

Brent crude futures settled 79 cents, or 0.9%, lower at $89.83 a barrel while WTI crude fell $1.00, or 1.2%, to $82.94.

 

European markets gained 0.6%-1.2%.

 

AT HOME

 

Sensex and Nifty slipped 0.4% and 0.6% respectively, snapping a 2-day winning streak. Sensex settled at 59456, down 262 points while Nifty lost 98 points to finish at 17718. Nifty mid-cap and small-cap indices fell 0.7% and 1% respectively. Except 1.1% higher FMCG index, all the BSE sectoral indices ended lower, with Utilities and Power indices being the top losers, down 2.3% and 2.2% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 461 cr, 1092 cr and 1453 cr respectively. DIIs were net buyers to the tune of Rs 539 cr.

 

Rupee depreciated 23 paise to end at 79.98/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.2%-2% and SGX Nifty is suggesting around 125 points lower start for our market.

 

In yesterday's report we had said that 17920, the top made Tuesday, was the immediate hurdle, while 17667, the lower end of the gap created by Tuesday's gap-up opening, was the immediate support.

 

Nifty, after touching a low of 17663, rebounded to end at 17718. The benchmark is set to open near 17600 today.

 

17430, the low made Monday, would be the downside level to eye after today's gap-down opening; 17919, the top made Tuesday, continues to be immediate hurdle, with the stop-loss of which, trading shorts can be held on to.

 

For Banknifty, 41840, the top made last week, continues to be immediate hurdle and 40500-40300 is the support area.

 

NIFTY RETREATS FROM 17900-17950 RESISTANCE ZONE

 

NIFTY RETREATS FROM 17900-17950 RESISTANCE ZONE

 

WORLD MARKETS

 

US indices fell nearly a percent each as treasury yields rose ahead of the interest rate decision from the Fed.

 

2-year Treasury yield jumped as high as 3.99%, the highest level since 2007. The yield on the 10-year Treasury briefly topped 3.6% — it's highest since 2011. Spot gold fell 0.7% to $1,664.99 an ounce. Dollar index climbed 0.6% to 110.19.

 

Data showed unexpected jump in housing starts for August, although building permits saw the biggest decline since April 2020.

 

Brent crude future fell 1.9% to $90.23 and WTI crude fell 1.5% to $84.45 per barrel.

 

European markets fell 0.6%-1.6%.

 

AT HOME

 

Benchmark indices climbed a percent each, extending the winning streak to second straight day. Sensex settled at 59719, up 578 points while Nifty added 194 points to finish at 17816. Nifty mid-cap and small-cap indices surged 1.4% and 1.1% respectively. All the BSE sectoral indices ended higher, with Healthcare and Consumer Durables indices on the top, up 2.8% and 2.2% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 1196 cr, 1844 cr and 1188 cr respectively. DIIs were net buyers to the tune of Rs 132 cr.

 

Rupee appreciated 2 paise to end at 79.75/$.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are down 1.3% each while Shanghai is off 0.6%. SGX Nifty is suggesting around 90 points lower start for our market.

 

In yesterday's report we had said that 17900-17950 was the immediate resistance zone while 17430, the low made Monday, was the immediate support.

 

Nifty, after touching a high of 17919, slipped to end at 17816. The benchmark is set to open near 17750 today.

 

17920, the top made yesterday, is the immediate hurdle, upon crossover of which, 18096, the top made last week, would be the next upside level to eye; 17667, the lower end of the gap created by yesterday's gap-up opening, is the immediate support, upon breach of which, 17430, the low made Monday, would be the next downside level to eye.

 

41840, the top made last week, is the immediate hurdle for Banknifty; 40500 continues to be immediate support.