19750-19800 IS THE IMMEDIATE RESISTANCE ZONE; 19554 IMMEDIATE SUPPORT

 19750-19800 IS THE IMMEDIATE RESISTANCE ZONE; 19554 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Dow fell 0.2%, S & P 500 was little changed while Nasdaq inched up 0.2%.

 

U.S. durable goods orders rose 0.2% in August, topping the 0.5% decline expected by economists.

 

U.S. 10-year treasury yield rose 7 bps to 4.61%. Dollar index rose 0.4% to 106.65, it's highest level in 10-monhts. Gold plunged 1.3% to $1876 per ounce.

 

Oil jumped after U.S. crude stocks fell more than expected, adding to worries of supply tightness amid OPEC+ production cuts. Brent crude futures rose 2.8% to $96.55 and WTI futures climbed 3.6% to $93.68.

 

European markets fell upto 0.4%.

 

Minutes of the Bank of Japan’s July meeting showed that policymakers agreed on the need to maintain ultra-loose monetary settings but were divided on how soon the central bank could end negative interest rates.

 

AT HOME

 

After falling more than half a percent in first hour, benchmark indices reversed and surged 0.8% from the bottom to end higher by a fourth of a percent. Sensex settled at 66118, up 173 points while Nifty added 51 points to finish at 19716. Nifty mid-cap and small-cap indices surged 0.8% and 1% respectively. Nifty Pharma and Healthcare indices surged 1.2% each, becoming top gainers among the sectoral indices, while Financial Services and Bank indices were the top losers, down 0.1% each.

 

FIIs net sold stocks and index futures worth Rs 354 cr and 1189 cr respectively but net bought stock futures worth Rs 864 cr. DIIs were net buyers to the tune of Rs 386 cr.

 

Rupee appreciated 1 paise to end at 83.22/$.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are down 0.9% and 0.4% respectively while Shanghai is up 0.2%. GIFT Nifty is suggesting a flattish 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, continued to be immediate support, while 19900 continued to be immediate hurdle on the way up.

 

Nifty, after touching a low of 19554, rebounded to end at 19716.

 

19750-19800 is the immediate resistance zone, upon crossover of which, 19890 and 19970, the 61.8% and 78.6% retracement levels of the recent 20222-19554 fall, would be next upside levels to eye; 19554, the low made yesterday, is immediate support.

 

For Banknifty, 44182, the low made yesterday, coincided with a trendline adjoining recent bottoms and hence is the immediate support to eye; 44800 is the immediate hurdle on the hourly chart, above which, 45000 and 45250, the 38.2% and 50% retracement levels of the recent fall, would be next upside levels to eye.

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