ASIA TUMBLES ON US WEAKNESS; 8100-8060 IMPORTANT SUPPORT ZONE FOR NIFTY
WORLD MARKETS
US indices fell between 0.6%-0.9% yesterday as Treasury yields climbed amid rising expectations that the Federal Reserve could raise interest rates sooner rather than later.
US 10-year Treasury yield rose to a six-week high and a the two-year yield spiked to a three-plus-year high.
European markets fell anywhere between 0.1%-1.4% as focus shifted to whether Scotland might vote to quit the United Kingdom next week, and the economic uncertainty that this could bring.
Nymex crude rose 0.1% to $92.8 a barrel; Gold fell 0.5% to $1248.5.
AT HOME
After Monday's big upmove, it was a consolidation time yet again as benchmark indices, after falling more than half a percent intraday, recovered in the late noon trade to end lower by nearly a fourth of a percent. Sensex lost 55 points to settle at 27256 while Nifty finished at 8153, down 21 points. Broader market outperformed, with BSE mid-cap and small-cap indices gaining 0.5% and 0.3% respectively. BSE Consumer Durable and FMCG indices gained the most among the sectoral indices, rising 1.8% and 0.9% respectively.
FIIs net bought stocks worth Rs 479 cr but net sold index futures and stock futures worth Rs 268 cr and 150 cr respectively. DIIs were net sellers to the tune of Rs 752 cr.
Rupee depreciated 31 paise to close at 60.6/$.
The Supreme Court, after hearing the final arguments on the coal block allocation case yesterday, reserved its order.
OUTLOOK
Today morning Asian markets are trading with cuts ranging from 0.5%-1.5% and SGX Nifty is suggesting about 40 point lower opening for our market.
It would be a testing time for bulls today as after the gap down opening, Nifty would be very close to the immediate support zone of 8100-8060 on the hourly chart, a breach of which would generate a sell on the hourly chart after many days and would set the stage for the further correction.
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