Deepak Jasani, Head of Retail Research, HDFC Securities
Indian markets fell the least in the Asian region. Among sectors, metals and banking indices rose the most, while IT and Oil & Gas indices fell the most. Broader market continued to be subdued as advance decline ratio was negative at 0.72:1.
Nifty recovered very well from the morning lows but succumbed to afternoon selling. It faced resistance from the high of the previous day. Now 18,088-18,092 could be the resistance for the near term while 17,765 could be the support. Broader market is showing the first signs of distribution.
Rupak De, Senior Technical Analyst, LKP Securities
Nifty remained above its previous consolidation as the global sell-off failed to pull the Indian equities down. On the lower end, the falling trend line has acted as crucial support for the Nifty. Besides, the index has been sustaining above the 50 exponential moving average on the daily timeframe, confirming an uptrend. Going forward, the trend will likely remain positive as long as it remains above 17,700. On the higher end, the index may move towards 18,600 once it provides a decisive breakout above 18,100.
Vinod Nair, Head of Research, Geojit Financial Services
Although the opening hours of the domestic market mirrored the sharp sell-off in the global market, it steadily recovered as investors gained the confidence to bottom fish, thanks to the brighter prospects for the home economy. The expectation that the Fed would become less hawkish, which had spurred the most recent global rally, was dashed by worse than anticipated US inflation figures. Additionally, India’s easing WPI inflation numbers added more optimism with banking stocks leading the recovery, while the IT sector’s performance was bleak due to recession fears in western markets.
Praveen Singh – AVP, Fundamental currencies and Commodities analyst, Sharekhan by BNP Paribas
Gold is under pressure as the US Federal Reserve is expected to remain hawkish for longer unless there is a clear and comforting downtrend in the US inflation. The yellow metal is at the low-end of its recent range. It is vulnerable and can quickly fall to test the support at $1690/$1675. The resistance at $1730 continues to thwart any recovery attempts.
After a gap-down opening, Nifty recovered sharply to close above 18,000. Take a look at the stocks that led the recovery
Markets at closeAfter recovering smartly from opening lows, Sensex ended the day 224 points lower at 60,346. Nifty shed 66 points, closing at 18,003. About 1632 shares have advanced, 1740 shares declined, and 140 shares were unchanged.Among sectors, IT stocks were the biggest losers with TCS, Infosys, HCL Tech and Tech Mahindra losing 2-4 percent. Financials recouped morning loses and led the rally with IndusInd Bank, SBI and Kotak Mahindra Bank ending as the top Nifty gainers. Metals glittered as Nifty Metal added 1.5 percent and Vedanta ended the day 10 percent higher
Anuj Choudhary, Research Analyst, Sharekhan by BNP Paribas
USDINR (CMP Rs 79.45 spot): Indian rupee depreciated 0.38 percent today on surge strong US Dollar and deteriorating global risk sentiments. US Dollar surged as US CPI rose unexpectedly to 8.3 percent YoY in August compared to expectations of 8.1 percent while core CPI increased to 6.3 percent YoY in August.
We expect Rupee to trade with a negative bias amid risk aversion in global market worries that the US Federal Reserve may be more hawkish than previously expected. Investors may also take cues from PPI data from US today. However, India’s WPI inflation eased to a 11-month low of 12.41 percent in August which may support Rupee at lower levels. USDINR spot price is expected to trade in a range of Rs 78.80 to Rs 80 in next couple of sessions.