17900-17950 IS THE RESISTANCE ZONE; 17430 IMMEDIATE SUPPORT

 

17900-17950 IS THE RESISTANCE ZONE; 17430 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices gained 0.6%-0.8% to snap a two-day losing streak,  ahead of the Federal Reserve’s two-day policy meeting slated to kick off Tuesday.

 

US 10-year Treasury yield rose 4 bps to 3.492% and hit its highest level in 11 years. Dollar index was little changed at 109.59. Gold inched up 0.1% to $1676 per ounce.

 

Brent as well as WTI crude rose half a percent each to $91.82 and $85.53 per barrel respectively.

 

In Europe, FTSE was closed to mark the funeral of Queen Elizabeth II. CAC fell 0.3% but DAX rose 0.5%.

 

AT HOME

 

Benchmark indices rose half a percent, snapping a 2-day losing streak. Sensex settled at 59141, up 300 points while Nifty added 91 points to finish at 17622. Nifty mid-cap and small-cap indices ended flat. BSE FMCG and Auto indices gained 1% and 0.8% respectively, becoming top gainers among the sectoral indices while Metal and Telecommunication indices were the top losers, down 1.2% and 1.1% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 312 cr, 1173 cr and 42 cr respectively. DIIs were net sellers to the tune of Rs 95 cr.

 

Rupee depreciated 3 paise to end at 79.77/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.3%-1.2% and SGX Nifty is suggesting nearly 100 points higher start for our market.

 

In yesterday's report we had said that 17484-17468 was the immediate support area, upon breach of which, 17166, the low made on 29th August, would be the next downside level to eye. We had also said that 17925 was the immediate hurdle on the hourly chart.

 

Nifty, after touching a low of 17430 in the initial trade, rebounded to end at 17622. The benchmark is set to open above 17700 today.

 

17900-17950 is the immediate resistance zone, a crossover of which is required to generate a "Buy" on the hourly chart. 17430, the low made yesterday, is the immediate support.

 

For Banknifty, 41840, the top made last week, continues to be immediate hurdle; 40500, continues to be immediate support on the hourly chart, below which, 20-DMA, placed around 39800, would be next downside level to eye.