NIFTY RETREATS FROM 17900-17950 RESISTANCE ZONE

 

NIFTY RETREATS FROM 17900-17950 RESISTANCE ZONE

 

WORLD MARKETS

 

US indices fell nearly a percent each as treasury yields rose ahead of the interest rate decision from the Fed.

 

2-year Treasury yield jumped as high as 3.99%, the highest level since 2007. The yield on the 10-year Treasury briefly topped 3.6% — it's highest since 2011. Spot gold fell 0.7% to $1,664.99 an ounce. Dollar index climbed 0.6% to 110.19.

 

Data showed unexpected jump in housing starts for August, although building permits saw the biggest decline since April 2020.

 

Brent crude future fell 1.9% to $90.23 and WTI crude fell 1.5% to $84.45 per barrel.

 

European markets fell 0.6%-1.6%.

 

AT HOME

 

Benchmark indices climbed a percent each, extending the winning streak to second straight day. Sensex settled at 59719, up 578 points while Nifty added 194 points to finish at 17816. Nifty mid-cap and small-cap indices surged 1.4% and 1.1% respectively. All the BSE sectoral indices ended higher, with Healthcare and Consumer Durables indices on the top, up 2.8% and 2.2% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 1196 cr, 1844 cr and 1188 cr respectively. DIIs were net buyers to the tune of Rs 132 cr.

 

Rupee appreciated 2 paise to end at 79.75/$.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are down 1.3% each while Shanghai is off 0.6%. SGX Nifty is suggesting around 90 points lower start for our market.

 

In yesterday's report we had said that 17900-17950 was the immediate resistance zone while 17430, the low made Monday, was the immediate support.

 

Nifty, after touching a high of 17919, slipped to end at 17816. The benchmark is set to open near 17750 today.

 

17920, the top made yesterday, is the immediate hurdle, upon crossover of which, 18096, the top made last week, would be the next upside level to eye; 17667, the lower end of the gap created by yesterday's gap-up opening, is the immediate support, upon breach of which, 17430, the low made Monday, would be the next downside level to eye.

 

41840, the top made last week, is the immediate hurdle for Banknifty; 40500 continues to be immediate support.