17800-17750 IS THE SUPPORT ZONE

 

17800-17750 IS THE SUPPORT ZONE

 

WORLD MARKETS

 

After gaining more than half a percent in the initial trade, US indices saw a sustained downward move through rest of the session to end lower by 0.6%-0.7% amid intensifying debate on whether inflation pressures will be transitory or derail the economy.

 

Goldman Sachs on Sunday cut its forecast for U.S. economic growth to 5.6% in 2021 and 4% in 2022, citing a drop-off in fiscal support and a slower consumer spending recovery.

 

U.S. fixed income markets were closed for a holiday. Dollar index inched up 0.054% to 94.215. Spot gold was 0.1% lower at $1,754.54 per ounce.

 

Brent crude rose $1.26, or 1.5%, to settle at $83.65 a barrel, its highest level in 3 years. WTI crude gained $1.17, or 1.5%, to settle at $80.52, touching its highest since late 2014.

 

In Europe, FTSE and CAC gained 0.7% and 0.2% respectively while DAX was little changed.

 

AT HOME

 

Sensex and Nifty, after hitting fresh record highs with Nifty crossing 18000 mark for the first time, gave back some of the gains to end higher by 0.1% and 0.3% respectively. Sensex settled at 60135, up 76 points while Nifty added 50 points to finish at 17945. Nifty mid-cap and small-cap indices gained 0.6% and 1.2% respectively. BSE Utilities and Power indices climbed 2.8% and 2.6% respectively, becoming top gainers among the sectoral indices while IT and Teck indices tumbled 2.9% and 2.6% respectively, becoming top losers.

 

FIIs net sold stocks and stock futures worth Rs 1303 cr and 1044 cr respectively but net bought index futures worth Rs 1373 cr. DIIs were net sellers to the tune of Rs 373 cr.

 

Rupee slipped 37 paise to end at 75.35/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.5%-1% and SGX Nifty is suggesting around 100 points lower start for our market.

 

In yesterday's report we had said that 17947, the top made on 24th September, continued to be immediate hurdle, upon crossover of which, 18100 would be next upside levels to eye.

 

Nifty crossed 17947 and surged all the way to 18042, but slipped from there to end at 17945. The benchmark is set to open near 17850 today.

 

17800-177750 is the immediate support zone; 18100 continues to be next upside target.

 

38500, 39000 are the upside levels to eye for Banknifty; 37800 is immediate support.

 

India's August IIP and September CPI data will be released today.