17576-17800 CONTINUES TO BE IMMEDIATE RANGE

 

17576-17800 CONTINUES TO BE IMMEDIATE RANGE

 

WORLD MARKETS

 

Dow and S & P 500 gained 0.2% and 0.2% respectively while Nasdaq fell 0.2% for its fourth straight negative session.

 

The House passed a bill that would suspend the U.S. debt ceiling after Treasury Secretary Janet Yellen told House Speaker Nancy Pelosi that Congress had until Oct. 18 to raise or suspend the debt ceiling. However, Republicans in the Senate have said they will reject the legislation.

 

The number of home sales pending in August rose 8.1%, well above the 1.2% consensus.

 

US 10-year treasury yield fell about 1 basis point to 1.527%. The dollar index rose for the fourth consecutive day, up 0.4% to 94.112, its highest since early November last year. Spot gold fell  0.7% to $1,722.50 per ounce.

 

Brent crude fell 51 cents, or 0.6%, to $78.58 per barrel, while US oil declined 45 cents, or 0.6%, to $74.84 per barrel. U.S. crude stockpiles rose by 4.6 million barrels last week, exceeding expectations.

 

In Europe, FTSE climbed 1.1% while DAX and CAC gained 0.8% each. Eurozone economic sentiment index hit 117.8 in September from 117.6 in August, following a record high 119.0 in July.

 

AT HOME

 

After falling around eight tenth of a percen in the initial trade, Sensex and Nifty rebounded to end lower by 0.4% and 0.2% respectively. Sensex settled at 59413, down 254 points while Nifty lost 37 points to finish at 17711. Nifty mid-cap and small-cap indices however ended with decent gains of 1.1% and 0.4% respectively. BSE Utilities and Power indices soared 3.9% and 3.5% respectively, becoming the top gainers among the sectoral indices while Finance and FMCG indices were the top losers, down 0.7% and 0.6% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 1896 cr, 1572 cr and 3676 cr respectively. DIIs were net buyers to the tune of Rs 3262 cr.

 

Rupee depreciated 11 paise to end at 74.15/$.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are down nearly half a percent while Shanghai is up half a percent. SGX Nifty is suggesting around 50 points lower start for our market.

 

In yesterday's report we had said that 17576, the low made Tuesday, was the immediate support while 17800 was the immediate hurdle on the hourly chart.

 

Nifty, after touching a low of 17608 in the initial trade, surged to 17781 but slipped from there to end at 17711.

 

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

 

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

 

37315, the low made Tuesday, continues to be immediate support for Banknifty, below which, 36800-37000 would be the next support area; 38377, the top made Tuesday, continues to be immediate hurdle.