17992 ABOVE 17777; 17400-17380 CONTINUES TO BE SPPORT AREA

 

17992 ABOVE 17777; 17400-17380 CONTINUES TO BE SPPORT AREA

 

WORLD MARKETS

 

US indices surged 1.4%-2.1%, with Nasdaq snapping 7-day losing streak, as rates and oil prices eased, cooling concerns about continued high inflation.

 

Fed Vice Chair Lael Brainard reaffirmed that the central bank would do what it takes to stifle inflation, while also noting the risks of going too far.

 

The Fed’s Beige Book showed economic activity little changed and growth outlooks still weak.

 

US 10-year treasury yield fell 7 bps to 3.271%. Dollar index, after hitting a high of 110.78, reversed to end 0.6% lower at 109.53. Gold rose 1% to $1718 per ounce.

 

Oil slid to seven-month low on demand fears stoked by looming recession risks and downbeat Chinese trade data. Brent futures fell $4.83 or 5.2% to $88 a barrel and WTI crude settled $4.94, or 5.69%, lower at $81.94 per barrel.

 

In Europe, FTSE fell 0.9%, CAC was little changed and DAX gained 0.4%. Britain’s pound fell to its lowest level against the U.S. dollar since 1985 as investors assessed the U.K.’s darkening economic outlook.

 

Data earlier showed China’s exports grew 7.1% y-o-y in August, but missed estimates of 12.8% forecast, after growing 18% in July.

 

AT HOME

 

After opening with cuts of a percent, benchmark indices recouped most of the losses through the session and ended just modestly lower. Sensex settled at 59028, down 168 points while Nifty lost 31 points to finish at 17624. Nifty mid-cap and small-cap indices extended the outperformance, rising 0.5% and 0.8% respectively. BSE Auto and Power indices fell 1.1% and 0.9% respectively, becoming top losers among the sectoral indices while Basic Materials and Telecom indices were the top gainers, up 0.9% each.

 

FIIs net bought stocks worth Rs 758 cr but net sold index futures and stock futures worth Rs 71 cr and 3116 cr respectively. DIIs were net sellers to the tune of Rs 139 cr.

 

Rupee depreciated 6 paise to end at 79.90/$.

 

OUTLOOK

 

Today morning, Nikkei is up 2%, Shanghai is marginally higher while Hang Seng is down 0.3%. SGX Nifty is suggesting around 100 points higher start for our market.

 

In yesterday's report we had said that 17400-17380, the gap created by gap-up opening on 30th August, continued to be immediate support area, while 17777, the top made last week, continued to be immediate hurdle.

 

Nifty, after touching a low of 17484, rebounded to end at 17624. The benchmark is set to open above 17700 today.

 

17777, the top made last week, continues to be immediate hurdle, above which, 17992, the top made in August, would be next upside level to eye; 17400-17380, the gap created by gap-up opening on 30th August, continues to be immediate support area.

 

For Banknifty, 40160, the top made in November 2021, continues to be upside level to eye; 39200-39000 continues to be support area.