Wall Street continue its correction trend, US market opened higher but post ISM Service PMI data which came higher than expectation triggered sell-off in tech stocks.
Crude Oil trading at level below Russia-Ukraine crisis level. OPEC+ cut by 100,000 bpd from October failed to hold on as recession fear.
IT & Metal stocks could lead the fall today on global cues, real test will be banking & domestic economy stocks. Mid-cap & Small-cap stocks need to be watched closely.
VIX @ 19.52: sustain above 20 need to turn cautious.
Approach on Indices: Nifty @ 17775 & Banknifty @ 40086 remains key resistance level, we will wait if today’s gap-down opening gets follow through selling.
Market View: Reaction to ISM Services PMI is surprising to us, we are more focus on US CPI & Core CPI inflation data on 13-Sep-22. Trend post US inflation data will have follow-through on either side, last important data before US FOMC meeting on 20 – 21 Sep.
Stocks in focus: HAL & BEL – MS raised target prices of HAL @ 3024 from 2655 & BEL raised by 373 from 260.
SGX Nifty @ 17478.50 down 196.50 points at 8:05 AM.