17500 ACHIEVED; 17350 NEXT

 

17500 ACHIEVED; 17350 NEXT

 

WORLD MARKETS

 

US indices nosedived 1.9%-2.6%, with the Dow and S & P 500 suffering their worst fall since June 16, on concerns over more aggressive rate hikes from the Fed.

 

US 10-year treasury yield rose 4 bps to 3.018%. Dollar index surged 0.8% 108.96. Gold slipped 0.6% to $1736 per ounce.

 

Oil prices, after falling nearly 4%, reversed to end higher, after Saudi energy minister said OPEC+ could cut production to confront market challenges. WTI gained 1.2% to $90.72 and Brent rose 0.8% to $96.55 per barrel.

 

European markets fell 0.2%-2.3%

 

Earlier, China's central bank cut its benchmark lending rate and lowered the mortgage reference by a bigger margin.

 

AT HOME

 

Benchmark indices tumbled 1.5% each, extending Friday's steep fall and closing at the lowest level after 5th August. Sensex settled at 58773, down 872 points while Nifty lost 267 points to finish at 17490. Nifty mid-cap and small-cap indices nosedived 2% and 1.6% respectively. All the BSE sectoral indices ended in red, with Metal and Realty indices leading the losses, down 2.7% and 2.5% respectively.

 

FIIs net sold stocks and stock futures worth Rs 454 cr and 214 cr respectively but net bought index futures worth Rs 542 cr. DIIs were net sellers to the tune of Rs 85 cr.

 

Rupee depreciated 8 paise to end at 79.86/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.1%-1.2% and SGX Nifty is suggesting around 80 points lower start for our market.

 

In yesterday's report we had said that 17500 was the next downside level to eye and had advised initiaing shorts with the stop-loss of 17992.

 

Nifty nosedived all the way to 17467 before closing at 17490, achieving the target mentioned above and vindicating our view. The benchmark is set to open near 17400 today.

 

17330, the 23.6% retracement level of the entire 15183-17992 upmove, is the next support for Nifty; 17800 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.

 

For Banknifty, 38000, the 23.6% retracement level of the entire upmove since mid-June, is the next support, below which 37250 would be next downside level to eye; 39200 is immediate hurdle.