17400 IS IMMEDIATE SUPPORT; 17777 IMMEDIATE HURDLE

 

174000 IS IMMEDIATE SUPPORT; 17777 IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow and S & P 500 rose 0.5% and 0.3% respectively to snap four-day losing streak while Nasdaq fell 0.3% to post its first five-day losing streak since February.

 

Weekly jobless claims fell to 232,000 for the week ending Aug. 27, showing a decline of 5,000 from the previous period and the lowest level since June 25. Data from the Institute for Supply Management (ISM) showed U.S. manufacturing grew steadily in August.

 

US 10-year treasury yield jumped 12 bps to 3.257% and 2-year treasury yield topped 3.5%, the highest level since November 2007. Dollar index rose 0.9% to 109.68, its highest since June 2002. Spot gold fell 0.9% to $1,696 per ounce.

 

Oil prices fell for the third straight session. Brent crude futures fell 3.4% to $92.36 per barrel and WTI futures settled 3.3% lower at $86.61.

 

European markets fell 1%-1.9%. Manufacturing activity across the Eurozone shrank for a second month in August, according to a survey.

 

AT HOME

 

After wild intraday swings, Sensex and Nifty ended lower by 1.3% and 1.2% respectively, giving away nearly 50% of Tuesday's huge gains. Sensex settled at 58766, down 770 points while Nifty lost 216 points to finish at 17542. Nifty mid-cap and small-cap indices managed to end higher by 0.1% each. BSE Energy and Oil & Gas indices were the top losers among the sectoral indices, down 2% and 1.8% respectively while Telecom index climbed 2.2% to become top gainer, followed by 1.1% higher Realty index.

 

FIIs net sold stocks, index futures and stock futures worth Rs 2290 cr, 4189 cr and 3463 cr respectively. DIIs were net buyers to the tune of Rs 951 cr.

 

Rupee depreciated 11 paise to end at 79.56/$.

 

OUTLOOK

 

Today morning, Asian markets are trading flat to modestly lower and SGX Nifty is suggesting a flattish start for our market.

 

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

 

Nifty, after making a low of 17468, closed at 17542.

 

17400-17380, the gap created by Tuesday's gap-up opening, continues to be immediate support area, below which, 17166, the low made Monday, would be the next downside level to eye; 17777, the top made Tuesday, continues to be immediate hurdle, above which, 17992, the top made in August, would be the next upside level to eye.

 

For Banknifty, 38800, the low made yesterday, is the immediate support, below which, 38472-38400, the gap created by Tuesday's gap-up opening, continues to be immediate support area; 39759, the top made on 19th August is the next upside level to eye.