23627 BELOW 23893; 24700-24750 IS THE RESISTACE ZONE

 

23627 BELOW 23893; 24700-24750 IS THE RESISTACE ZONE

 

WORLD MARKETS

 

U.S. indices fell 2.6%-3.4%, with the Dow and S&P 500 registering their biggest daily losses since September 2022.

 

Nvidia tumbled 6.4%, bringing its decline from its 52-week high to nearly 29%. Apple

fell 4.8% after Warren Buffett’s Berkshire Hathaway cut its stake in the iPhone maker in half.

 

The ISM services index for July came in at 51.4, up from 48.8% in June and better than the estimate for 50.9%.

 

U.S. 10-year treasury yield, after touching a low of 3.667, rebounded to end flat at 3.792%. Dollar index fell half a percent to 102.67. Gold fell 1.3% to $2409 per ounce.

 

WTI crude futures fell 0.8% to $72.94 while Brent futures fell 0.7% to $76.30 per barrel.

 

European markets fell 1.4%-2.3%. U.K. services PMI in July rose to 52.5 from 52.1 the previous month. Corresponding data for Italy and Spain also pointed to sustained growth in the sector but at a slower pace than previous months.

 

Japan’s stock market nosedived 12.4%, posting its worst drop since Wall Street’s Black Monday in 1987.

 

AT HOME

 

Benchmark indices nosedived 2.7% each, posting their worst day since election result day and closing at the lowest level since late June 2024. Sensex settled at 78759, down 2222 points while Nifty lost 662 points to finish at 24055. Nifty mid-cap and small-cap indices tumbled 3.6% and 4.6% respectively. All the NSE sectoral indices ended in red, with Metal and Media indices being the top losers, down 4.8% and 4.6% respectively.

 

FIIs net sold stocks and index futures worth Rs 10074 cr and 2434 cr respectively but net bought stock futures worth Rs 1391 cr. DIIs were net buyers to the tune of Rs 9156 cr.

 

Rupee depreciated 10 paise to end at 83.85/$.

 

Bharti Airtel posted mixed set of numbers. Profit doubled due to exceptional item while margin and average revenue per user were marginally below estimates.

 

OUTLOOK

 

Today morning, Nikkei is up 9% while Hang Seng and Shanghai are up 0.6% and 0.2% respectively. GIFT Nifty is suggesting nearly 200 points higher start for our market.

 

In yesterday's report we had said that 34-DMA, placed around 24300, was the next support to eye while 24900 was the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts could be held on to.

 

Nifty plunged all the way to 23893 before closing at 24055 and is set to open above 24200 today.

 

23893, the low made yesterday, is the immediate support, upon breach of which, 23627, the 38.2% retracement level of the upmove seen since the election result day, would be next downside level to eye; 24700-24750 is the immediate resistance zone, with the stop-loss of which, trading shorts can be held on to.

 

For Banknifty, 49719, the low made yesterday, is the immediate support, upon breach of which, 48860, the 61.8% retracement levels of the upmove seen since election result day, would be next downside levels to eye; 51400 is immediate hurdle.

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