24700 BELOW 24801; 25150-25200 IS THE RESISTANCE ZONE

 

24700 BELOW 24801; 25150-25200 IS THE RESISTANCE ZONE

 

WORLD MARKETS

 

U.S. indices nosedived 1%-2.6% as investors assessed the fallout from a weak August jobs report and ditched leading technology stocks.

 

Nonfarm payrolls grew by 142,000, versus a 161,000 gain expected. July numbers were also revised down to 89,000. However, the unemployment rate edged down to 4.2% from 4.3% a month earlier, in line with expectations.

 

U.S. 10-year treasury yield fell 2 bps to 3.712%. Dollar index inched up 0.1% to 101.19. Gold fell 0.8% to $2497 per ounce.

 

Oil extended losses with Brent and WTI posting their worst week in nearly a year and hitting their lowest level since March and June 2023 respectively. WTI crude futures fell 2.1% to $67.67 while Brent futures fell 2.2% to $71.06 per barrel.

 

European markets fell 0.7%-1.5%.

 

For the week, U.S. indices tumbled 2.9%-5.8%, with S & P 500 and Nasdaq posting their worst week since March 2023 and 2022 respectively. US crude shed 8% for its worst week since October and Brent fell 9.8%.

 

AT HOME

 

Benchmark indices tumbled a percent and fifth, posting their worst cut in a month and closing at the lowest level after 23rd August. Sensex settled at 81183, down 1017 points while Nifty lost 292 points to finish at 24852. Nifty mid-cap and small-cap indices slipped 1.6% and 1.2% respectively. All the NSE sectoral indices ended in red, with PSU Bank index being the top loser, down 3.6%, followed by 2.2% lower Oil & Gas index.

 

FIIs net sold stocks, index futures and stock futures worth Rs 621 cr, 3107 cr and 7266 cr respectively. DIIs were net buyers to the tune of Rs 2122 cr.

 

Rupee appreciated 3 paise to end at 83.95/$.

 

For the week, Sensex and Nifty fell 1.4% and 1.5% respectively, snapping a 3-week winning streak.

 

OUTLOOK

 

Hong Kong’s markets are shut today due to Super Typhoon Yagi. Nikkei and Shanghai are down 1.8% and 0.7% respectively while GIFT Nifty is suggesting around 60 points lower start for our market.

 

In Friday's report we had said that 25083 continued to be immediate support, a breach of which will confirm a "Sell" on the hourly chart and in that case, 20-DMA, placed around 24800, would be the next downside level to eye.

 

Nifty broke 25083 and plunged all the way to 24801 before closing at 24869.

 

24801, the low made Friday, roughly coincided with 20-DMA and hence is the immediate support to eye. Below 24801, 34-DMA, placed around 24700, would be next downside target. On the way up, 25150-25200 is the immediate resistance zone, with the stop-loss of which, trading shorts can be held on to.

 

For Banknifty, 50447, the low made Friday, roughly coincided with 20-week moving average and hence is the immediate support to eye, upon breach of which, 49654, the low made in August, would be next downside level to eye. On the way up, 51300 is the immediate hurdle on the hourly chart, above which, 51750, the top made during the week, would be bigger hurdle to eye.

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