DOLLAR, US TREASURY YIELD RISE ON HAWKISH FED STATEMENT;
10040 CONTINUES TO BE IMMEDIATE SUPPORT FOR NIFTY
WORLD MARKETS
While Dow and S & P 500 gained 0.2% and 0.1%
respectively, Nasdaq fell 0.1%, digesting the outcome of Fed meeting.
Fed said it would start winding down its $4.5 trillion
balance sheet in October and indicated that one additional rate hike was
probable this year.
Treasury yields rose with the 10-year note hitting a high
of 2.29%, its highest level since Aug. 8. The two-year note yielded as high as
1.451%, touching its highest levels since 2008. Dollar index rose 0.7% to 92.45.
Main European markets ended little changed but Italy and
Spain fell 0.3% and 0.8% respectively. UK retail sales surged 1% last month,
beating forecasts.
AT HOME
It was yet another day of consolidation as benchmark
indices ended little changed after trading in a narrow range. Sensex settled at
32400, down 2 points while Nifty lost 6 points to finish at 10141. BSE mid-cap
and small-cap indices fell 0.1% each. BSE Telecom and Auto indices fell 0.8%
and 0.7% respectively, becoming top losers among the sectoral indices while
Capital Goods and Healthcare indices were the top gainers, putting on 0.5% and
0.2% respectively.
FIIs net sold stocks and index futures worth Rs 1185 cr
and 469 cr respectively but net bought stock futures worth Rs 129 cr. DIIs were
net buyers to the tune of Rs 946 cr.
Rupee appreciated 6 paise to end at 64.27/$
OUTLOOK
Today morning, Nikkei is up 0.7% but other Asian markets
are trading with modest cuts and SGX Nifty is suggesting about 20 points lower
start for our market.
10040, the low made last Friday, continues to be immediate
support below which 34 DMA, which also coincides with the upward sloping
trendline adjoining recent bottoms, placed around 9950, would be the crucial
support to eye.
10220 continues to be immediate upside target.
Traders are advised to hold long positions with the
stop-loss of 10040.
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