17793 ABOVE 17623; 17326 IS THE IMMEDIATE SUPPORT

 

17793 ABOVE 17623; 17326 IS THE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices climbed 1% each, with the Dow and S & P 500 snapping 4-day losing streak and posting best day in 2-months, after the Federal Reserve said it will "soon" begin reducing stimulus measures, suggesting that the US economy is in shape to withstand less support from the central bank.

 

Fed Chair Powell said tapering of bond purchases could be done by mid-2022 following a statement from the central bank that also signaled interest rate increases may follow more quickly than expected. The central bank also downgraded its GDP growth estimate for 2021 to 5.9% from 7% previously.

 

Existing-home sales dipped 2% month over month in August, but the median home price was up almost 15% compared with the same period last year.

 

The House of Representatives passed legislation that avoid a government shutdown and suspend the debt ceiling until December 2022. However, the bill now moves to the Senate, where Democrats have a much slimmer majority.

 

The yield on the 10-year and 30-year treasury notes dropped 1.7 and 3.5 bps respectively to 1.307% and 1.822% respectively. Short-term rates, on the other hand, moved higher. Dollar index strengthened 0.3% to 93.46. Spot gold fell 0.4% to $1,767.38 per ounce.

 

WTI crude climbed $1.74, or 2.5%, to reach $72.23 per barrel while Brent crude futures climbed $1.54, or 2%, to $75.89 a barrel after U.S. crude stocks fell to their lowest levels in three years as refining activity recovered from recent storms.

 

European markets gained 1%-1.5%.  Euro zone consumer confidence rose to 1.3 points in September from -4.0 in August, better than the expected -5.8 figure.

 

Meanwhile, China Evergrande Group's main unit said it would make the coupon payment on its Shenzhen-traded bond on time on Sept. 23, but the developer has not indicated whether it will be able to pay $83.5 million in interest due on its March 2022 bond on Thursday.

 

AT HOME

 

It was a day of consolidation as benchmark indices ended marginally in the red after a rangebound but choppy session. Sensex settled at 58927, down 78 points while Nifty lost 15 points to finish at 17546. Nifty mid-cap and small-cap indices however surged 1.7% and 1.4% respectively. BSE Realty index soared 8.4%, becoming the top gainer among the sectoral indices, followed by 1.9% higher Consumer Discretionary Goods & Services indices. Bankex and Finance indices were the top losers, down 0.8% and 0.6% respectively.

 

FIIs net sold stocks and index futures worth Rs 1943 cr and 958 cr respectively but net bought stock futures worth Rs 1529 cr. DIIs were net buyers to the tune of Rs 1850 cr.

 

Rupee depreciated 26 paise to end at 73.87/$.

 

OUTLOOK

 

Today morning, Nikkei is shut while Hang Seng and Shanghai are up 1.8% and 0.9% respectively. SGX Nifty is suggesting around 90 points higher start for our market.

 

In yesterday's report we had said that 17623, the top made Monday, continued to be the immediate hurdle while 17300-17250 continued to be support zone.

 

Nifty, after touching a high of 17610, slipped to end at 17546. The benchmark is set to open above 17600 today.

 

17623, the top made Monday, continues to be the immediate hurdle, above which, 17793, the top made last week, would be the bigger resistance to eye.

 

17326, the bottom made Tuesday, is the immediate support.

 

37340, the top made Tuesday, is the immediate hurdle for Banknifty, upon crossover of which, 37800 would be the next upside level to eye; 36350-36150 is the support zone.