25100-25000 IS THE SUPPORT ZONE; 25333 IMMEDIATE HURDLE

 

25100-25000 IS THE SUPPORT ZONE; 25333 IMMEDIATE HURDLE

 

WORLD MARKETS

 

U.S. indices nosedived 1.5%-3.3%, posting their worst day going back to the Aug. 5th sell-off, as chip names came under pressure and new economic data rekindled fears around the health of the economy.

 

ISM manufacturing index for August came in at 47.2 for the month, up 0.4 percentage points from July, but below the 47.9% expected from Dow Jones.

 

U.S. 10-year treasury yield fell 7 bps to 3.833%. Dollar index inched up 0.1% to 101.77. Gold fell 0.3% to $2492 per ounce.

 

Oil price tumbled to post their lowest close since December and erasing all gains for the year. WTI crude futures fell 4.4% to $70.34 while Brent futures fell 4.9% to $73.75 per barrel.

 

European markets fell 0.8%-1.3%. Total U.K. sales were up 1% y-o-y in August — a moderation from 4.1% growth in the same month of 2023.

 

AT HOME

 

Benchmark indices ended little changed after a rangebound session. Sensex settled at 82555, down 4 points while Nifty inched up 1 point to finish at 25280, extending the winning streak to fourteenth straight session. Nifty mid-cap and small-cap indices gained 0.25% and 0.4% respectively. Nifty Consumer Durables and Financial Services indices climbed 1.3% and 1.1% respectively, becoming top gainers among the sectoral indices while Media index was the top losers, down 1.4%, followed by 0.6% lower Metal index.

 

FIIs net bought stocks, index futures and stock futures worth Rs 1029 cr, 389 cr and 5992 cr respectively. DIIs were net buyers to the tune of Rs 1896 cr.

 

Rupee depreciated 5 paise to end at 83.97/$.

 

OUTLOOK

 

Today morning, Nikkei is down more than 3% while Hang Seng and Shanghai are off 1.6% and 0.7% respectively. GIFT Nifty is suggesting around 175 points gap-down start for our market.

 

In yesterday's report we had said that 25600, around which a rising trendline adjoining recent tops on daily chart was placed, continued to be next big upside target to eye while 25100 was the immediate support on the hourly chart, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a high of 25321, eased to end at 25280. The benchmark is set to open near 25100 today.

 

25100-25000 is the immediate support zone on the hourly chart, upon breach of which, 20-DMA, placed around 24700, would be next downside level to eye; 25333, the top made Monday, is the immediate hurdle.

 

For Banknifty, 51943 and 52565, the 61.8% and 78.6% retracement levels of the 53357-49654 fall, are the next upside levels to eye; 51200-51000 is the immediate support zone.

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