19333 IS IMMEDIATE SUPPORT; 19620 IMMEDIATE HURDLE

19333 IS IMMEDIATE SUPPORT; 19620 IMMEDIATE HURDLE

 

WORLD MARKETS

 

U.S. indices gained 0.4%-1.4%, with the Dow snapping a 3-day losing streak, as treasury yields eased from 16-year highs following the release of much weaker-than-expected jobs data.

 

ADP said 89,000 private payrolls were added last month, well below forecast of 160,000 and fewer than an upwardly revised 180,000 payroll additions from August. Meanwhile, U.S. factory orders gained 1.2% in August, compared with expectations of a 0.2% rise. U.S. services sector slowed in September as new orders fell to a nine-month low.

 

U.S. 10-year treasury yield, after hitting a high of 4.884%, retreated to end 6 bps lower at 4.735%. Dollar index fell 0.3% to 106.77. Gold fell 0.1% to $1821 per ounce.

 

Oil prices had their single largest day of losses back to September 2022. Brent as well as WTI futures

plunged 5.6% each to $85.81 and $84.22 a barrel respectively.

 

In Europe, FTSE fell 0.8%, CAC was flat while DAX inched up 0.1%. Data showed euro zone retail sales fell much more than expected in August and that the bloc’s economy probably shrank last quarter.

 

AT HOME

 

After falling a percent, benchmark indices recouped half of the losses in late noon surge to end lower by nearly half a percent. Sensex lost 286 points to settle at 65226, it’s lowest close after 31^st August while Nifty finished at 19436, down 92 points and marking the lowest finish since 1^st September. Nifty mid-cap and small-cap indices tumbled 1.4% and 1.2% respectively for their worst day since 12th and 21st September respectively. Except 0.3% and 0.2% higher IT and FMCG indices respectively, all the NSE sectoral indices ended lower, with PSU Bank index being the top losers, down 2.8%, followed by 1.7% lower Realty, Media and Healthcare indices.

 

FIIs net sold stocks, index futures and stock futures worth Rs 4424 cr, 560 cr and 7185 cr respectively. DIIs were net buyers to the tune of Rs 1769 cr.

 

Rupee depreciated 3 paise to end at 83.24/$.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are up 0.9% and 0.2% respectively while GIFT Nifty is suggesting around 25 points higher start for our market.

 

In yesterday's report we had said that 19437 continued to be next support, below which Nifty might revisit 19223 bottom made on 31st August.

 

Nifty broke 19437 and plunged all the way to 19333 but rebounded from there to end at 19436.

 

19333, the low made yesterday, coincided with lower band of daily bollinger band and hence is the immediate support to eye; On the way up, 34-DMA, placed around 19620, would act as immediate hurdle.

 

For Banknifty, 43800, around which a trendline adjoining bottoms made in June and August is placed, is the immediate support, below which, 43600 would be next downside level to eye; 44400-44500 is the immediate resistance zone. 

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