17380-17777 CONTINUES TO BE IMMEDIATE RANGE

 

17380-17777 CONTINUES TO BE IMMEDIATE RANGE

 

WORLD MARKETS

 

On Friday, after gaining more than a percent, US indices nosedived and reversed these gains to end with cuts of 1.1%-1.3% as a mixed August jobs report failed to ease fears that the Federal Reserve would keep aggressively hiking interest rates to fight inflation. Nasdaq Composite posted its first six-day losing streak since 2019.

 

US economy added economy added 315,000 jobs in August, ahead of estimated 3,00,000 figure. The unemployment rate rose to 3.7%, slightly above expectations of 3.5%. Average hourly earnings rose 0.3%, lower than the 0.4% expected.

 

US 10-year treasury yield eased 6 bps to 3.193%. Dollar index was flat at 109.60. Gold rose 0.9% to $1711 per ounce.

 

European markets surged 1.9%-3.3%.

 

For the week, US indices fell 3%-4.2% for their third negative week in a row. In Europe, FTSE and CAC fell 2% and 1.7% respectively but DAX inched up 0.6%. In Asia, Indian markets were just marginally lower but Nikkei and Hang Seng plunged more than 3% and Shanghai was off 1.5%. WTI oil tumbled 6.2%. US 10-year treasury yield rose 19 bps to 3.1999%. Dollar index rose 0.8% to 109.61 for its third consecutive up-week. Gold fell 0.8% to $1723 per ounce.

 

AT HOME

 

Sensex inched up a bit while Nifty ended a tad lower after a rangebound but choppy session. Sensex settled at 58803, up 36 points while Nifty lost 3 points to finish at 17539. Nifty mid-cap and small-cap indices fell 0.4% and 0.2% respectively. BSE Capital Goods and Industrials indices were the top gainers among the sectoral indices, up 1.1% and 0.9% respectively while Oil & Gas and Energy indices were the top losers, down 1% each.

 

FIIs net sold stocks, index futures and stock futures worth Rs 9 cr, 2065 cr and 2396 cr respectively. DIIs were net sellers to the tune of Rs 669 cr.

 

Rupee depreciated 24 paise to end at 79.80/$.

 

For the week, both Sensex and Nifty ended almost flat.

 

OUTLOOK

 

Today morning, Hang Seng and Nikkei are down 1.3% and 0.3% respectively while Shanghai is little changed. SGX Nifty is suggesting around 50 points lower start for our market.

 

In Friday's report we had said that 17400-17380, the gap created by Tuesday's gap-up opening, continued to be immediate support area, while 17777, the top made Tuesday, continued to be immediate hurdle.

 

Nifty, after touching a high of 17643, closed at 17539 and is set to open near 17500 today.

 

17400-17380, the gap created by Tuesday's gap-up opening, continues to be immediate support area, below which, 17166, the low last week, would be the next downside level to eye; 17777, the top made last week, continues to be immediate hurdle.

 

For Banknifty, 39759, the top made in August, is the immediate hurdle, upon crossover of which, 40160, the top made in November 2021, would be the next target. 38800 is the immediate support on the hourly chart.