16855 IS THE NEXT SUPPORT; 17250 IMMEDIATE HURDLE

 

16855 IS THE NEXT SUPPORT; 17250 IMMEDIATE HURDLE

 

WORLD MARKETS

 

After starting in red, US indices saw sharp upmove, only to fall back later in the session. At the end, Dow rose 0.1% while S & P 500 and Nasdaq fell 0.6% and 1.1% respectively. Both S & P 500 and Nasdaq fell for the fifth consecutive day. S & P 500 intraday hit the lowest level since November 2020.

 

Stocks fell off their highs and bond yields rose after Bank of England said its market intervention will be over soon, and that pension funds have just three days to rebalance positions.

 

US 10-year treasury yield, after hitting an itraday high of 4.007%, eased to end 1 bps lower at 3.951%. Dollar index rose 0.1% to 113.29. Gold fell 0.1% to $1666 per ounce.

 

The IMF cut its 2023 global growth forecasts further and also said countries representing a third of world output could be in recession next year.

 

Brent as well as WTI crude settled 2% lower at $94.29 and $89.35 respectively.

 

European markets fell 0.1%-1.1%.

 

AT HOME

 

After starting marginally in the green, benchmark indices saw a sustined donward move through the session to end with deep cuts of a percent and half. Sensex settled at 57147, down 844 points while Nifty plunged 257 points to finish at 16983. Nifty mid-cap and small-cap indices tumbled 1.7% each. All the NSE sectoral indices ended in red, with Realty and Metal indices being the top losers, down 3.1% and 2.2% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 4613 cr, 1015 cr and 1659 cr respectively. DIIs were net buyers to the tune of Rs 2431 cr.

 

Rupee appreciated 1 paise to end at 82.31/$.

 

OUTLOOK

 

Today morning, Nikkei is flat while Hang Seng and Shanghai are down 1.8% and 0.6% respectively. SGX Nifty is suggesting a flattish start for our market.

 

In yesterday's report we had said that 17428, the top made last week, continued to be immediate hurdle while 17064, the low made Monday, was the immediate support.

 

Nifty broke 17064 and plunged all the way to 16950 before closing at 16983.

 

16855, the low made last week, is the next support, below which, 16747, the bottom made in September, would be the next downside level to eye ; 17250 is the immediate hurdle on the hourly chart, above which, 17428, the top made last week, would be bigger resistance to eye.

 

For Banknifty, 38450 continues to be immediate support on the hourly chart, below which, 37963, the low made last week, would be next downside level to eye; 39608, the top made last week, continues to be immediate hurdle. 

 

India's September CPI and August IIP data will be released today.

 

HCL Tech and Wipro will report their quarterly earnings today.