19550 CONTINUES TO BE IMMEDIATE HURDLE

 

19550 CONTINUES TO BE IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow and S & P 500 fell 0.5% and 0.3% respectively while Nasdaq managed to end 0.1% higher

 

Several regional and larger banks fell after S&P Global cut credit ratings and revised its outlook for multiple U.S. banks, citing “tough” operating conditions.

 

Richmond Fed president Barkin said that the Fed needs to defend the 2% inflation target to preserve its credibility with the public.

 

U.S. 10-year treasury yield fell 1 bps to 4.328%. Dollar index rose 0.3% to 103.60. Gold gained 0.2% to $1897 per ounce.

 

Brent crude settled down 43 cents at $84.03 a barrel while WTI October contract slipped 48 cents to $79.64.

 

European markets gained 0.2%-0.6%.

 

AT HOME

 

Benchmark indices ended flat after a rangebound session. Sensex settled at 65220, up 4 points while Nifty added 3 points to finish at 19396. Nifty mid-cap and small-cap indices however climbed 1.1% and 0.8% respectively, with the former hitting fresh record high and the later closing at the highest level after 17th January 2022. Nifty Metal and Consumer Durables indices gained 0.8% and 0.7% respectively, becoming top gainers among the sectoral indices while PSU Bank and Pharma indices were the top losers, down 0.5% and 0.2% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 495 cr, 49 cr and 116 cr respectively. DIIs were net buyers to the tune of Rs 534 cr.

 

Rupee appreciated 17 paise to end at 82.94/$.

 

OUTLOOK

 

Today morning, Nikkei is up 0.2% but Hang Seng and Shanghai are down 0.2% and 0.7% respectively. GIFT Nifty is suggesting around 25 points lower start for our market.

 

In yesterday's report we had said that 19550, around which 20 as well as 34-DMAs are placed, continued to be important immediate resistance to eye while 19253, the low made last week, was the immediate support.

 

Nifty, after touching a high of 19443, slipped to end at 19396.

 

19550, around which 20 as well as 34-DMAs are placed, continues to be important immediate resistance to eye; 19253, the low made last week, is the immediate support, below which, 19160 and 18934, the 61.8% and 78.6% retracement levels of the 18646-19991 upmove seen since 26th June, would the next downside levels to eye.

 

For Banknifty, 43345, the bottom made in June, continues to be next support;44500 continues to be immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.

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