US EQUITIES FALL THE MOST IN TWO MONTHS; NIFTY AT ONE-MONTH LOW

US EQUITIES FALL THE MOST IN TWO MONTHS; NIFTY AT ONE-MONTH LOW

WORLD MARKETS

US indices plunged between 1.5%-1.9%, marking the worst fall since July 31, as Apple tumbled on glitches tied to its new smartphone and on media reports that Russia had drafted a law to allow the seizure of foreign assets.

Draft law, submitted to Russia's parliament on Wednesday by a pro-Kremlin deputy, would also allow state compensation for those whose assets were taken in foreign jurisdictions. The proposed measure comes after Italy froze luxury properties owned by a longtime friend of President Vladimir Putin.

US durable goods orders fell 18.2% in August while applications for unemployment benefits rose by 12,000 to a  293,000 last week, less than the 300,000 estimate. Markit's initial services PMI for September came in at 58.5 versus an expected 59.0.

European markets fell between 0.7%-1.6%. Bank of England Governor Mark Carney, at a conference, said that the improving economy meant a rate rise was to be expected. .

Nymex crude fell 27 cents to $92.5 a barrel; Gold rose $2.4 to $1222 an Ounce.

                                                             

AT HOME

After plunging nearly a percent and half through the session, benchmark indices recouped a third of the losses in last half an hour to end lower by nearly a percent, extending the losing streak to third straight day and closing at one-month low. Sensex lost 276 points to settle at 26468 while Nifty finished at 7912, down 91 points. BSE mid-cap and small-cap indices lost 2.4% and 3.2% respectively. BSE Realty and Oil & Gas indices tumbled 3.2% and 3.1% respectively, becoming top losers among the sectoral indices while IT and Teck indices gained 1.1% and 0.9% respectively.

FIIs net sold stocks and stock futures worth Rs 851 cr and 866 cr respectively but net bought index futures worth Rs 121 cr. DIIs were net buyers to the tune of Rs 819 cr.

Rupee tumbled 38 paise to close at 61.34/$, marking a 7-week low.

For the September derivative series, Nifty lost 0.5%, snapping 8-series winning run.

OUTLOOK

Today morning Asian markets are trading with cuts in the vicinity of half a percent and SGX Nifty is suggesting about 30 points lower opening for our market.

In yesterday's report we had mentioned that 7950-7925 continues to be a crucial support zone, a breach of which would confirm a lower-top lower-bottom formation on the daily chart. The benchmark tumbled 91 points to settle at 7912, breaking this support.

This opens up the possibility of the larger retracement of the recent 7540-8180 upmove. 7860 and 7785, the 50% and 61.8% retracement levels of this upmove are the next support levels to eye. Immediate resistance on the hourly chart has now moved to 8060, a crossover of which is required to generate a buy on the hourly chart and bring bulls back in the game.

Till then keep wearing your bearish mask.