34-DMA SUPPORT AROUND 24300; 24900 IS IMMEDIATE HURDLE

 

34-DMA SUPPORT AROUND 24300; 24900 IS IMMEDIATE HURDLE

 

WORLD MARKETS

 

U.S. indices fell 1.5%-2.4% on Friday as a much weaker-than-anticipated jobs report for July ignited worries that the economy could be falling into a recession.

 

Nonfarm payrolls grew by just 114,000 last month, a slowing from 179,000 jobs added in June and below the 185,000 expectations. The unemployment rate increased to 4.3%, highest since October 2021.

 

Amazon tumbled 8.8% after missing the Street’s revenue estimates and issuing a disappointing forecast. Intel nosedived 26% after announcing weak guidance and layoffs.

 

The 10-year Treasury yield fell 18 bps to 3.794%, its lowest since December. Dollar index fell 1.1% to 103.22, its lowest in four months. Gold eased 0.1% to $2442 per ounce.

 

WTI crude futures fell 3.7%, to $76.81 a barrel and Brent future dropped 3.4% to settle at $76.81 per barrel.

 

European markets fell 1.3%-2.6%.

 

For the week, Dow and S & P 500 fell 2.1% each while Nasdaq dipped 3.4%. U.S. 10-year treasury yield fell 40 bps. Dollar index fell 1.1%. Gold jumped 2.3%. WTI dropped 4.7% for the week, while Brent pulled back 5.3%.

 

AT HOME

 

Sensex and Nifty tumbled 1.1% and 1.2% respectively, snapping a 5-session winning streak. Sensex settled at 80981, down 885 points while Nifty lost 293 points to finish at 24717. Nifty mid-cap and small-cap indices fell 1% and 0.8% respectively. Except 0.5% and 0.4% higher Pharma and Healthcare indices respectively, all the NSE sectoral indices ended in red, with Realty and Auto indices being the top losers, down 3.5% and 2.9% respectively.

 

FIIs net sold stocks worth Rs 3310 cr but net bought index futures and stock futures worth Rs 1390 cr and 1627 cr respectively. DIIs were net buyers to the tune of Rs 2966 cr.

 

Rupee depreciated 3 paise to end at 83.75/$.

 

For the week, Sensex and Nifty fell 0.4% and 0.5% respectively, snapping an 8-week winning streak.

 

OUTLOOK

 

Today morning, Nikkei is down 6%, Hang Seng is off 0.4% while Shanghai is up 0.2%. GIFT Nifty is suggesting more than 300 points gap-down start for our market.

 

In Friday's report we had said that 25400 followed by 25600, continued to be next upside targets to eye for Nifty while 24750 was the immediate support on the hourly chart, with the stop-loss of which, trading longs could be held on to.

 

Nifty broke 24750 and plunged all the way to 24686 before closing at 24717 and is set to open near 24400 today.

 

After today's big gap-down start, 34-DMA, placed around 24300, would be important support to eye; 24900 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.

 

For Banknifty, 50438, the low made in July, is the immediate support, upon breach of which, 49720 and 48860, the 50% and 61.8% retracement levels of the upmove seen since election result day, would be next downside levels to eye; 52000 is immediate hurdle.

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