25130 CONTINUES TO BE IMMEDIATE HURDLE

 

25130 CONTINUES TO BE IMMEDIATE HURDLE

 

WORLD MARKETS

 

After starting lower on the back of hotter-than-expected core inflation data, U.S. indices rebounded to end sharply higher. Nasdaq and S & P 500 climbed 2.2% and 1.1% respectively while Dow rose 0.3%.

 

U.S. consumer price index (CPI) gained 0.2% last month, matching the advance in July. Y-o-Y reading of 2.5% was the smallest rise since February 2021 and down from a 2.9% increase in July. But excluding the volatile food and energy components, the CPI climbed 0.3% in August after rising 0.2% in July.

 

U.S. 10-year treasury yield inched up 1 bps to 3.655%. Dollar index was little changed at 101.72. Gold fell 0.2% to $2511 per ounce.

 

WTI crude futures rose 2.4% to $67.31 while Brent futures gained 2.05% to reach $70.61 per barrel.

 

In Europe, DAX rose 0.4% while FTSE and CAC fell 0.1% each. Data showed U.K. economy continued to flatline in July, falling short of analyst expectations of a 0.2% uptick.

 

AT HOME

 

Benchmark indices slipped half a percent each, snapping a 2-session winning streak. Sensex settled at 81523, down 398 points while Nifty lost 122 points to finish at 24918. Nifty mid-cap and small-cap indices fell 0.2% and 0.8% respectively. Except 0.3% and 0.1% higher FMCG and Consumer Durables indices respectively, all the NSE sectoral indices ended lower, with Oil & Gas and PSU Bank indices leading the losses, down 1.9% and 1.8% respectively.

 

FIIs net bought stocks worth Rs 1755 cr but net sold index futures and stock futures worth Rs 177 cr and 2698 cr respectively. DIIs were net buyers to the tune of Rs 231 cr.

 

Rupee ended flat at 83.98/$.

 

OUTLOOK

 

Japan’s producer price index rose 2.5% y-o-y in August, less than the expected 2.8% and the 3% reported in the previous month.

 

Today morning, Nikkei is up nearly 3% while Hang Seng and Shanghai are up 0.4% and 0.2% respectively. GIFT Nifty is suggesting around 125 points higher start for our market.

 

In yesterday's report we had said that 25130, the top made Tuesday, was the immediate hurdle.

 

Nifty, after touching a high of 25113, slipped to end at 24918. The benchmark is set to open near 25050 today.

 

25130, the top made Tuesday, continues to be immediate hurdle, a crossover of which is required for a fresh upmove; 24753, the bottom made on Monday, around which 34-DMA is also placed, is the important immediate support to eye.

 

For Banknifty, 51420, the top made yesterday, is the immediate hurdle, above which, 51750, the top made last week, would be next upside level to eye; 50369, the low made Monday, around which 20-week moving average is placed, is the important immediate support.

 

India's August CPI and July IIP data will be out today.

Investment in securities market is subject to market risk.

Please check https://www.prudentbroking.com/Disclaimert.aspx for detailed disclaimer.