Share Market News Today | Sensex, Nifty, Share Prices LIVE: Domestic equity market benchmarks BSE Sensex and NSE Nifty 50 fell more than 1% on Wednesday on weak global cues. BSE Sensex tanked 1.2 per cent or 709 points to 59,868, while NSE Nifty 50 fell 1.13 per cent to 17865. Stocks of NTPC, Asian Paints, Nestle India, Dr Reddy’s, and Hindustan Unilever were among top index gainers. Infosys, Tech Mahindra, Tata Consultancy Services, TCS, HCL Tech, Wipro, L&T, HDFC Bank, Reliance were among top Sensex draggers.

The US inflation in August rose higher at 8.3% y-o-y against expectation of 8.1%. The CPI index increased 0.1% month on month while the economists were expecting it to decline by 0.1% over the month due to sharp correction in energy prices. However, decline in energy prices was offset by higher cost of food ( 0.8% m/m) and shelter costs ( 0.7% m/m). High costs of food, housing, transportation and other services reiterate the strong consumer demand and elevated service sector price pressures. With inflation being ‘stickier’ than expected, it is highly likely that the Fed will go for another jumbo rate hike of 75bps in its next FOMC meeting on 21st September.

The US inflation in August rose higher at 8.3% y-o-y against expectation of 8.1%. The CPI index increased 0.1% month on month while the economists were expecting it to decline by 0.1% over the month due to sharp correction in energy prices. However, decline in energy prices was offset by higher cost of food ( 0.8% m/m) and shelter costs ( 0.7% m/m). High costs of food, housing, transportation and other services reiterate the strong consumer demand and elevated service sector price pressures. With inflation being ‘stickier’ than expected, it is highly likely that the Fed will go for another jumbo rate hike of 75bps in its next FOMC meeting on 21st September.

NSE Nifty 50 index successfully cleared the short-term resistance of 18000/60350 and succeeded to close above the same on Tuesday, which is broadly positive. In addition, on daily and intraday charts, it is holding uptrend continuation formation, which supports further uptrend from the current levels. We are of the view that, the short term texture of the market is on the bullish side but due to temporary overbought conditions we could witness range bound activity. Hence buying on intraday corrections and selling on rallies would be the ideal strategy for the short-term trades.

Sensex and Nifty are down taking cues from the losses in the global markets due to a slight higher US CPI exceeding the expectations and inducing the fear of recession. However, the fall in the Indian benchmark indices seems temporary sustainable to one or two days. In current scenario, Nifty and Sensex may test the levels of 17600 and 59200 respectively. The long term outlook of the Nifty and Sensex is positive. The Foreign investors have continued to be net buyers in the Indian market, which is a stark change from a couple of months back. The cooling off of the crude oil prices due to the Ukraine reclaiming it’s boundaries will also lower the imports bill. All these factors will combined to give a positive impact on the benchmark indices in long run. Sensex and Nifty may touch the levels of 61500 and 18600 respectively till Diwali festival.

Consistently high inflation despite a decent fall in energy prices indicate a rising interest rate scenario which could have a massive impact on both corporate and investor earnings as well. Technically, 17770 remains strong support for Nifty. A daily close below this level could lead to 17480 in the coming days. Resistance will remain at 18066.