STAY SHORT WITH THE STOP-LOSS OF 19700

 STAY SHORT WITH THE STOP-LOSS OF 19700

 

WORLD MARKETS

 

U.S. indices plunged 1%-2.2% after ratings agency Fitch downgraded the United States’ long-term credit rating from AAA to AA+

 

Data from ADP showed private payrolls rose by 324,000 last month, more than the expected 189,000.

 

U.S. 10-year treasury yield rose 6 bps to 4.084% and hit highest level since November. Dollar index rose 0.6% to 102.59. Gold fell 0.8% to $1934 per ounce.

 

WTI futures settled down 2.3%, to $79.49 a barrel while Brent crude futures fell 2% to $83.20 a barrel.

 

European markets fell 1.3%-1.8%.

 

AT HOME

 

After plunging a percent and half, benchmark indices recouped a third of the losses in last hour to end lower by a percent each and closed at the lowest level after 13th July 2023. Sensex settled at 65782, down 676 points while Nifty lost 207 points to finish at 19526. Nifty mid-cap and small-cap indices tumbled 1.3% and 1.6% respectively, with the former snapping a 6-day winning streak and suffering the worst cut after 13th March 2023 while small-cap index had worst fall since 27th March. All the NSE sectoral indices ended lower, with PSU Bank and Metal indices being the top losers, down 2.6% and 2% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 1878 cr, 860 cr and 2055 cr respectively. DIIs were net sellers to the tune of Rs 2 cr.

 

Rupee depreciated 32 paise to end at 82.58/$.

 

Titan reported an operationally weak first quarter with the jewelry segment margin at it's lowest in two years. HPCL was a top-down beat. Revenue rose 4% y-o-y while operating margin rose to 8.3% from 4.1%. 

 

OUTLOOK

 

Today morning, Nikkei is down 1.3% while Hang Seng and Shanghai are down 0.1% each. GIFT Nifty is suggesting around 60 points lower start for our market.

 

In yesterday's report we had said that 19563, followed by 19450, were the downside levels to eye.

 

Nifty plunged all the way to 19423 before closing at 19526.

 

34-DMA, placed around 19350, is the next support to eye; 19700 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.

 

For Banknifty, 44550, the bottom made in July, is the next support to eye; 45500-45600 is the immediate resistance zone.

 

Bharti Airtel, Eicher Motors and Sun Pharma will report their quarterly earnings today.

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