17196-17291 IS THE RESISTANCE ZONE; 16747 IMPORTANT SUPPORT

 

17196-17291 IS THE RESISTANCE ZONE; 16747 IMPORTANT SUPPORT

 

WORLD MARKETS

 

US indices surged 2.3%-2.7% to start the new month and quarter, as treasury yields and dollar eased. It was the best day for Dow and S & P 500 since June 24 and July 27 respectively.

 

ISM manufacturing PMI fell to 50.9 in September from 52.8 in August, and grew at its slowest pace in nearly 2-1/2 years.

 

US 10-year treasury yield fell 15 bps to 3.647%. Spot gold climbed 2.3% to $1,699 per ounce, its biggest daily rise since March 8.

 

Oil prices surged on reports that OPEC+ is considering reducing output by more than 1 million barrels per day. Brent surged $3.72, or 4.37%, to settle at $88.86 per barrel and WTI crude ended the day 5.2%, or $4.14, higher at $83.63 per barrel.

 

Main European markets gained 0.2%-0.8%.

 

AT HOME

 

Sensex and Nifty tumbled 1.1% and 1.2% respectively, giving away nearly two-third of Friday's gains. Sensex settled at 56788, down 638 points while Nifty lost 207 points to finish at 16887. Nifty mid-cap and small-cap indices fell 1.2% and 0.7% respectively. Except 0.8% and 0.4% higher Healthcare and Telecommunication indices respectively, all the BSE sectoral indices ended in red, with Power and Utilities indices leading the losses, down 3.2% and 3.1% respectively.

 

FIIs net bought stocks worth Rs 591 cr but net sold index futures and stock futures worth Rs 1170 cr and 2119 cr respectively. DIIs were net sellers to the tune of Rs 423 cr.

 

Rupee depreciated 53 paise to end at 81.87/$.

 

OUTLOOK

 

Markets in mainland China and Hong Kong are closed for a holiday. Nikkei is up 2.7%. SGX Nifty is suggesting nearly 200 points higher start for our market.

 

In yesterday's report we had said that 16747, the low made last week, roughly coincided with 20-week moving average and hence was the important immediate support while 17196-17291, the gap created by last week’s gap-down opening, was the immediate resistance zone.

 

Nifty plunged all the way to 16855 before closing at 16887. The benchmark however is set to open above 17000 today.

 

17196-17291, the gap created by last week’s gap-down opening, continues to be immediate resistance zone; 16747, the low made last week continues to be important immediate support.

 

For Banknifty, 39229-39412, the gap created by last week’s gap-down opening, is the next upside level to eye; On the way down, 37386, the low last week, is the support.