17992 ABOVE 17777; 17400 CONTINUES TO BE IMMEDIATE SUPPORT

 

17992 ABOVE 17777; 17400 CONTINUES TO BE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US markets were shut yesterday for Labor Day holiday.

 

In Europe, FTSE recouped initial losses to end 0.1% higher but DAX and CAC tumbled 2.2% and 1.2% respectively on concerns about the energy supply from Russia after Russia’s state-owned energy giant Gazprom announced that gas flows to Europe via the Nord Stream 1 pipeline would be halted indefinitely, citing additional repair requirements.

 

Earlier, a private survey on Chinese services activity showed the sector grew in August.

 

Dollar index, after hitting a fresh 20-year high of 110.27, eased to end flat at 109.61. Gold fell 0.2% to $1709 per ounce.

 

Brent crude futures rose 2% to $95.16 a barrel and WTI futures rose 0.8% to $87.56.

 

AT HOME

 

Benchmark indices gained seven tenth of a percent with Sensex rising 442 points to 59245 and Nifty adding 126 points to finish at 17665. Nifty mid-cap and small-cap indices rose 0.4% and 1.2% respectively. Except 0.3% and 0.1% lower Oil & Gas and Power indices respectively, all the BSE sectoral indices ended higher, with Metal index on the top, up 2%, followed by 1.1% higher Capital Goods index.

 

FIIs net sold stocks worth Rs 812 cr but net bought index futures and stock futures worth Rs 1112 cr and 826 cr respectively. DIIs were net buyers to the tune of Rs 534 cr.

 

Rupee depreciated 4 paise to end at 79.84/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of upto 0.4% 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, continued to be immediate support area, while 17777, the top made last week, continued to be immediate hurdle.

 

Nifty rose to touch a high of 17683 before closing at 17665.

 

17777, the top made last week, continues to be immediate hurdle, above which, 17992, the top made in August, would be the bigger hurdle to negotiate; 17400-17380, the gap created by last Tuesday’s gap-up opening, continues to be immediate support area.

 

For Banknifty, 40160, the top made in November 2021, is the next target; 39000 is immediate support.