Analysts see an upside hurdle for the index at 18,150 while they see immediate support for the index at 17,925-900 level.
Tuesday’s market action signal a formation of spinning top-type candle at the high, said Nagaraj Shetti of HDFC Securities, who said such a formation after a reasonable upmove or at the hurdle could be considered as a reversal pattern post confirmation.
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Wall Street slumps at open after hot inflation data
Wall Street’s main indexes opened sharply lower on Tuesday after data showed monthly U.S consumer prices unexpectedly rose in August, cementing bets of a third straight 75-basis-point rate hike from the Federal Reserve next week.The Dow Jones Industrial Average fell 374.84 points, or 1.16%, at the open to 32,006.50.The S&P 500 opened lower by 73.29 points, or 1.78%, at 4,037.12, while the Nasdaq Composite dropped 357.60 points, or 2.92%, to 11,908.81 at the opening bell.
European markets slide after U.S. inflation data
European shares and the euro slid on Tuesday, and European bond yields jumped, after data showed monthly U.S consumer prices unexpectedly rose in August.The consumer price index gained 0.1% last month after being unchanged in July, the Labor Department said on Tuesday. Economists polled by Reuters had forecast the CPI dipping 0.1%.European stocks turned sharply lower, pushing the pan-regional STOXX 600 equity benchmark into negative territory. The index was down 0.3% by 1246 GMT, having risen as much as 0.6% before the data.
Futures slump after August inflation data
U.S. stock index futures fell sharply on Tuesday after data showed a faster-than-expected rise in August consumer prices, cementing bets of a large 75-basis-point rate hike from the Federal Reserve next week.At 08:31 a.m. ET, Dow e-minis were down 306 points, or 0.94%, S&P 500 e-minis were down 50.5 points, or 1.23%, and Nasdaq 100 e-minis were down 199 points, or 1.56%.
OPEC sticks to upbeat view on oil demand growth in 2022, 2023
OPEC on Tuesday stuck to its forecasts for robust global oil demand growth in 2022 and 2023 citing signs that major economies were faring better than expected despite headwinds such as surging inflation.Oil demand will increase by 3.1 million barrels per day (bpd) in 2022 and by 2.7 million bpd in 2023, unchanged from last month, the Organization of the Petroleum Exporting Countries (OPEC) said in a monthly report.Oil use has rebounded from the lows of the pandemic, although high prices and Chinese coronavirus outbreaks have trimmed 2022 growth projections.OPEC now sees oil use exceeding 2019’s rate in 2023, having this year said it expected this to happen in 2022.
The Indian rupee has perked up by around 0.45 percent, appreciating on the back of strong portfolio inflows, as well as the recent slide witnessed in the dollar index from two-decade highs. The greenback has reversed course amid expectations of a cool-off in inflation and eventual softening of the Fed’s aggressive policy stance. There are a lot of concerns about the faltering global economic backdrop, but domestic equities are cruising higher amid improving risk sentiments which supports an appreciation bias for the domestic currency. Besides, stable oil prices are further aiding the outlook for the domestic currency. However, as per the latest data, headline retail inflation has inched higher to 7 percent in August as compared to a reading of 6.71 percent in July-a five-month low which is capping gains in the local currency to a certain extent. Looking ahead, we foresee some resistance for the rupee-dollar exchange rate at the 79 mark, while a breach of the same would pave the way for the 78.50 mark in the coming days.
– Ms.Sugandha Sachdeva, Vice President – Commodity and Currency Research, Religare Broking Ltd.
Tech View: Nifty50 takes out 18K, but strength missing
Nifty50 on Tuesday climbed for the fourth straight day and, in the process, took out the 18,000 level on a closing basis, the first time since April 4. The 50-pack index, which is trading above its key short and long-term averages, formed a small bullish candle on the daily chart, with wicks on both the sides, reflecting the indecisiveness among traders at high. Analysts see an upside hurdle for the index at 18,150 while they see immediate support for the index at 17,925-900 level.
We expect market momentum to continue in the near term with Nifty heading towards 18,200 zones. Positive global cues, strengthening of rupee and drop in 10yr bond yield to five month low are some of the key positives. Nifty opened higher on Tuesday and traded firm throughout the day to close with gains of 134 points (+0.7%) at 18,070 levels. Nifty finally managed to cross and close above the 18k levels after almost 6 months. FIIs have been net buyer of more than Rs2000crore for last 3 consecutive days. India’s inflation data came in line with expectation thus not impacting the sentiments much. Market would now keep an eye on US inflation data which would provide cues to Fed’s future course of action. Niche mid cap sectors continued to remain in action with stocks from specialty chemicals, footwear, building materials etc. doing well.
– Mr. Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
Markets started the week on a firm note and gained over half a percent, in continuation of the prevailing trend. Firm global cues triggered an upbeat start in Nifty and it almost retested the previous swing high closer to the 18,000 mark in early trades and remained range bound thereafter. Meanwhile, strong traction in the realty, IT and media pack combined with noticeable buying on the broader front kept the participants busy. The recent rebound in the global markets especially the US is adding to the market strength and we reiterate our immediate target of 18,100+ in Nifty. Apart from the heavyweights, participants should also look at broader indices for trading opportunities.
– Mr. Ajit Mishra, VP – Research, Religare Broking Ltd
Positive indicators from the domestic economy, such as FII inflow, improving macro-parameters, and decreased inflation, were the key factors for the current surge in the Indian market. However, the global markets have recently joined the rally ahead of the release of US inflation data, as the market expects a further ease in inflation, which would help the Fed take a less hawkish stance. Although the domestic CPI at 7% indicates a rising inflation trend due to increased food prices, core inflation of 5.9% offers some solace. The policy decisions made by the RBI and Fed at their upcoming policy meetings will drive the market going ahead.
– Vinod Nair, Head of Research at Geojit Financial Services
Kunal Shah – Senior Technical & Derivative Analyst at LKP Securities
The Bank Nifty index witnessed a gap up opening and sustained the level throughout the day which confirms the strength. The index immediate hurdle is placed at 41000 where the highest open interest is built up on the call side and once breached will see a sharp sort covering towards 41,500-41,800 levels.
Barring Nifty IT, realty & PSU Bank all indices end higher
Closing Bell: Sensex extends winning run to 4th session, jumps 456 pts; Nifty ends above 18,000; PB Fintech rallies 12%, Bajaj Finserv 5%
India not defending INR, rupee can take care of itself: CEA V Anantha Nageswaran
Chief Economic Advisor V Anantha Nageswaran on Tuesday said India is not defending the rupee and the Reserve Bank of India is taking necessary steps to ensure that the movement of the rupee is gradual and in line with market trends. Nageswaran further said that the rupee is being managed in a manner that reflects the fundamentals of the economy.”India is not defending the rupee… I don’t think Indian fundamentals are such that we need to defend the rupee. The rupee can take care of itself,” he said at an event here.The Indian rupee, in August, had touched an all-time low of 80.15 against the US dollar. It is currently hovering at 79.25 level against the American currency.”The RBI is making sure that whatever direction the rupee is moving in line with the market trends is just gradual and doesn’t impose burden either on the importers or the exporters,” Nageswaran added.
GLOBAL MARKET CHECK
- The Stoxx Europe 600 rose 0.2% as of 10:24 a.m. London time
- Futures on the S&P 500 rose 0.4%
- Futures on the Nasdaq 100 rose 0.3%
- Futures on the Dow Jones Industrial Average rose 0.3%
- The MSCI Asia Pacific Index rose 0.6%
- The MSCI Emerging Markets Index rose 0.6%
Ujjivan Financial, Elgi Equipments among top 10 losers
Price as on 13 Sep, 2022 02:26 PM, Click on company names for their live prices.
Rupee appreciated on back of weak dollar and inline CPI data for India which gave a positive impact for the rupee. Along with lower expected data of US CPI to come out later in evening expected at 8.1% compared to 8.5% giving negative rally to dollar as lower inflation data would add less pressure on FED’s to hike rate by 0.75bps and go with 0.50 or even 0.25 in case CPI comes even lower than expectations. Thus rupee has seen a smart rally from 79.70-79.00 in the last 24hrs…
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