17500 BELOW 17576; 17800 IS THE IMMEDIATE HURDLE

 

17500 BELOW 17576; 17800 IS THE IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices nosedived 1.6%-2.8%, with the Nasdaq suffering its worst fall since March, as a spike in bond yield and debt ceiling debate in Washington weighed on equities.

US 10-year treasury yield rose 6.2 bps to 1.546% The U.S. dollar index rose 0.3% to 93.719 and hit its highest level in more than 10 months. Spot gold fell 0.8% to $1,735.54 per ounce, its lowest in seven weeks.

 

Meanwhile, lawmakers must act on a funding plan before the government faces a shutdown Friday.

 

Fed Chair Powell said to the Senate Banking Committee that inflation could persist longer than expected as a result of supply chain issues and reopening pressures.

 

July S&P/Case-Shiller home price index rose 19.7% y-o-y. The Conference Board consumer confidence reading came in at 109.3, below the 114.9 expected.

 

Brent, after topping $80 for the first time since October, reversed to end 0.6% lower at $79.09 per barrel. WTI finished the day at $75.29 per barrel, for a loss of 0.21%.

 

Various firms downgraded China’s GDP forecasts amid a power crunch. Goldman Sachs slashed its China GDP growth expectations to 7.8%, from 8.2% earlier while Nomura cut its forecast to 7.7% from 8.2%.

 

European markets fell 0.5%-2.6%. Germany's GFK consumer sentiment index for October climbed to 0.3 points from a revised -1.1 points for September, outstripping a forecast for -1.6.

 

AT HOME

 

After a positive start, benchmark indices nosedived a percent and half but recouped more than half of the losses in last hour to end lower by nearly two third of a percent. Sensex settled at 59667, down 410 points while Nifty lost 106 points to finish at 17748. Nifty mid-cap and small-cap indices fell 0.7% and 0.5% respectively. BSE Realty and Telecom indices tumbled 3% and 2.6% respectively, becoming the top losers among the sectoral indices while Utilities and Power indices were the top gainers, up 1.7% and 1.5% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 1958 cr, 2205 cr and 2341 cr respectively. DIIs were net buyers to the tune of Rs 161 cr.

 

Rupee depreciated 20 paise to end at 74.04/$.

 

OUTLOOK

 

Today morning, Nikkei is down 2.6% while Hang Seng and Shanghai are off 1% and 1.4% respectively. SGX Nifty is suggesting around 120 points lower start for our market.

 

In yesterday's report we had said that a crossover of 17950 hurdle was required for a fresh upmove and had reiterated the advise of holding on to long positions with the stop-loss of 17610.

 

Nifty, after touching a high of 17913 in the initial trade, plunged to 17576 before closing at 17748 and is set to open near 17650 today.

 

17576, the low made yesterday, is the immediate support, below which, 20-DMA, placed around 17500, would be the next downside level to eye.

 

17800 is the immediate hurdle on the hourly chart, above which, 17900-17950 would be the bigger resistance zone to eye.

 

38315, the low made yesterday, is the immediate support for Banknifty, below which, 36800-37000 would be the next support area; 38377, the top made yesterday, is the immediate hurdle.