NIFTY TESTS 200-DMA SUPPORT

 

NIFTY TESTS 200-DMA SUPPORT

 

WORLD MARKETS

 

US indices fell 0.6%-1.1%, with the S&P 500 notching a new closing low for 2022 and the Dow slipping into a bear market as interest rates continued to surge and turmoil rocked global currencies.

 

US 10-year treasury yield surged 23 bps to 3.926% and 2-year yield rose 14 bps to 4.356%. Dollar index climbed 1% to 114.10. The British pound plunged 4% to an all-time low of $1.0382 before recovering to 1.0685. The euro hit the lowest versus the dollar since 2002. Spot gold fell 1.2% to $1,623.59 per ounce, it's lowest level in 2-1/2 years.

 

Brent crude futures fell 2.1% to $84.32 per barrel and WTI futures fell 2.3% to $76.97 per barrel, a price last seen in early January.

 

In Europe, FTSE was flat while DAX and CAC eased 0.5% and 0.2% respectively.

 

AT HOME

 

Sensex and Nifty tumbled 1.6% and 1.8% respectively, extending the losing streak to fourth straight day and closing at the lowest level after 28th July. Sensex settled at 57145, down 953 points while Nifty lost 311 points to finish at 17016. Nifty mid-cap and small-cap indices nosedived 3.1% and 3.4% respectively. Except 0.1% higher IT index, all the BSE sectoral indices ended in red, with Metal and Realty indices being the top losers, down 4.5% and 4.3% respectively.

 

FIIs net sold stocks worth Rs 5101 cr but net bought index futures and stock futures worth Rs 941 cr and 823 cr respectively. DIIs were net buyers to the tune of Rs 3532 cr.

 

Rupee depreciated 63 paise to end at 81.62/$.

 

OUTLOOK

 

Today morning, Nikkei and Shanghai are up 0.7% and 0.1% respectively while Hang Seng is down 0.3%. SGX Nifty is suggesting around 60 points higher start for our market.

 

In yesterday's report we had said that 17166, the low made on 29th August, was the next support, upon breach of which, 200-DMA, placed around 17000, would be next downside level to eye. We had also advised holding on the short positions with the stop-loss of 17650.

 

Nifty plunged all the way to 16978 before closing at 17016.

 

16978, the low made yesterday, which coincided with 200-DMA, is the immediate support, below which, 16880-16800 would be the next support area to eye; 17600 is the immediate resistance on the hourly chart, with the stop-loss of which, trading shorts can be held on to.

 

For Banknifty, 37943, the low made on 29th August, is the next downside level to eye; 40600 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.