17581-17557 IS THE SUPPORT ZONE; 17885, 17947 ARE UPSIDE LEVELS

 

17581-17557 IS THE SUPPORT ZONE; 17885, 17947 ARE UPSIDE LEVELS

 

WORLD MARKETS

 

After starting nearly a percent lower, US indices saw a sustained upward move through the session to end with gains of 0.3%-0.5% as concerns about a debt ceiling deal eased and private payroll data beat estimate.

 

Senate Minority Leader Mitch McConnell offered a short-term suspension of the U.S. debt ceiling to avert a national default and economic crisis.

 

Data from ADP showed private jobs rose by 568,000 for the month, better than the estimate of 425,000 and ahead of the downwardly revised 340,000 reading in August.

 

US 10-year treasury yield fell 1 basis points to 1.522%. Dollar index rose 0.3% to 94.228. Spot gold was up 0.1% at $1,760.78 per ounce.

 

Brent crude settled 1.8% lower at $81.08 per barrel while US crude closed 1.9% lower at $77.43 per barrel after U.S. crude inventories rose by 2.3 million barrels last week, against expectations for a dip of 418,000 barrels.

 

European markets fell 1.2%-1.5%. German industrial orders fell more sharply than expected in August as overseas demand weakened. Spanish industrial output rose 1.8% y-o-y in August, well below the 3.5% forecast.

 

AT HOME

 

After rising a third of a percent in the initial trade, benchmark indices nosedived 1.3% from the top to end lower by nearly a percent. Sensex settled at 59190, down 555 points while Nifty lost 176 points to finish at 17646. Nifty mid-cap and small-cap indices fell 0.9% and 0.8% respectively, snapping 5-day winning streak. All the BSE sectoral indices ended in red, with Metal and Healthcare indices leading the losses, down 3% and 1.7% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 803 cr, 244 cr and 1532 cr respectively. DIIs were net sellers to the tune of Rs 999 cr.

 

Rupee plunged 53 paise to 74.98/$, its lowest level after 19th April 2021.

 

OUTLOOK

 

Today morning, Hang Seng and Nikkei are up 2.3% and 1.5% respectively and SGX Nifty is suggesting around 130 points higher start for our market.

 

In yesterday's report we had said that 17947, the top made last week, was the next upside level to eye and that 17660 was the immediate support, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a high of 17884, plunged to 17613 before closing at 17646. The benchmark is set to open near 17750 today.

 

17885, the top made yesterday followed by 17947, the top made last week, are the upside level to eye.

 

17581-17557, the gap created by Monday's gap-up opening, is the support zone.

 

38107, 38377 are upside levels to eye for Banknifty; 37355-37300, the gap created by Monday's gap-up opening, is the support zone.