19437 BELOW 19600; 19900 CONTINUES TO BE IMMEDIATE HURDLE

 

19437 BELOW 19600; 19900 CONTINUES TO BE IMMEDIATE HURDLE

 

WORLD MARKETS

 

U.S. indices tumbled 1.1%-1.6% after new home sales and consumer confidence data missed estimates.

 

Homes under contract came in at 675,000 for August, versus estimate for 695,000. The Conference Board’s consumer confidence index declined to 103 in September from 108.7 in August and versus forecast of 105.5.

 

U.S. 10-year treasury yield was flat at 4.536%. Dollar index rose 0.2% to 106.18. Gold fell 0.9% to $1900 per ounce.

 

Brent crude futures settled 0.7% higher at $93.96 a barrel and WTI futures rose 0.8% to $90.39.

 

In Europe, FTSE was little changed while DAX and CAC fell 1% and 0.7% respectively.

 

AT HOME

 

Benchmark indices ended marginally in the red after a rangebound session. Sensex settled at 65945, down 78 points while Nifty lost 10 points to finish at 19664. Nifty mid-cap index fell 0.2% but small-cap index rose 0.6%. Nifty Media and PSU Bank indices slipped 0.9% and 0.6% respectively, becoming top losers among the sectoral indices while FMCG and Auto indices were the top gainers, up 0.5% and 0.4% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 693 cr, 359 cr and 1197 cr respectively. DIIs were net buyers to the tune of Rs 715 cr.

 

Rupee depreciated 8 paise to end at 83.23/$.

 

OUTLOOK

 

Today morning, Hang Seng and Shanghai are up 0.3% each while Nikkei is down 0.8%. GIFT Nifty is suggesting around 50 points lower start for our market.

 

In yesterday's report we had said that 19601, the low made Monday, which coincided with 34-DMA as well as the 61.8% retracement level of the recent 19223-20222 upmove, was the immediate while 19900 was the immediate hurdle on the way up.

 

Nifty ended little changed at 19664.

 

19601, the low made Monday, which coincided with 34-DMA as well as the 61.8% retracement level of the recent 19223-20222 upmove, continues to be immediate support, upon breach of which, 78.6% retracement level of the aforementioned upmove, placed at 19437, would be next downside level to eye; 19900 continues to be immediate hurdle on the way up.

 

For Banknifty, 44360, the 78.6% retracement level of the recent 43830-46310 upmove, continues to be immediate support, below which, the benchmark might revisit 43830 bottom made on 1st September; 45300-45400 is the immediate resistance zone.

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