NIFTY RETREATS FROM 17777 HURDLE

 

NIFTY RETREATS FROM 17777 HURDLE

 

WORLD MARKETS

 

US indices fell 0.4%-0.7% as treasury yields rose sharply following strong economic data.

 

ISM non-manufacturing PMI figure for August came in better-than-expected at 56.9, rising month over month.

 

US 10-year treasury yield jumped 12 bps to 3.351% for its highest close since mid-June. Dollar index rose 0.6% to 110.25, hitting a two-decade high. Gold, after touching an intraday high of $1727, reversed to end 0.4% lower at $1701 per ounce.

 

Brent crude settled at $92.83 a barrel, losing $2.91, or 3%. WTI was little changed at $86.88.

 

In Europe, FTSE and CAC gained 0.2% each while DAX rose 0.9%.

 

AT HOME

 

After rising nearly half a percent at the open, benchmark indices gave away all the gains through the session and ended marginally in the red. Sensex settled at 59196, down 49 points while Nifty lost 10 points to finish at 17655. Nifty mid-cap and small-cap indices gained 0.6% and 0.3% respectively. BSE Power and Utilities indices were the top gainers among the sectoral indices, rising 1.9% and 1.7% respectively. FMCG index and Bankex were the top losers, down 0.5% and 0.4% respectively.

 

FIIs net bought stocks worth Rs 1145 cr but net sold index futures and stock futures worth Rs 1005 cr and 488 cr respectively. DIIs were net buyers to the tune of Rs 633 cr.

 

Rupee ended unchanged at 79.84/$.

 

OUTLOOK

 

Today morning, Hang Seng and Nikkei are down 1.3% and 1.1% respectively while Shanghai is marginally higher. SGX Nifty is suggesting around 200 points lower start for our market.

 

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

 

Nifty, after touching a high of 17764, slipped to end at 17655 and is set to open below 17500 today.

 

17400-17380, the gap created by gap-up opening on 30th August, continues to be immediate support area, upon breach of which, 17166, the bottom made last week, would be the next downside level to eye; 17777, the top made last week, continues to be immediate hurdle.

 

For Banknifty, 40160, the top made in November 2021, continues to be upside level to eye; 39200-39000 is the support area.