U.S. indices surged 1%-2.4% on the back of soft wholesale inflation data.

The producer price index increased 0.1% last month, slower than the expected 0.2% rise.

U.S. 10-year treasury yield fell 6 bps to 3.845%. Dollar index tumbled half a percent to 102.60. Gold fell 0.2% to $2466/ounce.

WTI crude futures fell 2.1% to $78.35 while Brent futures fell 2% to $80.69 per barrel.

European markets gained 0.2%-0.7%. UK’s jobless rate fell to 4.2% in June from 4.4% in May, defying expectations of a slight rise. Job vacancies declined while wage growth slowed.

Benchmark indices slipped nine tenth of a percent each, closing in red for the sixth day out of past eight sessions. Sensex settled at 78956, down 692 points while Nifty lost 208 points to finish at 24139. Nifty mid-cap and small-cap indices fell 0.8% and 1.3% respectively.  Nifty Financial Services was the top loser among the sectoral indices, down 1.7%, followed by 1.6% lower Metal and PSU Bank indices. Consumer Durables index surged 1.3%, becoming top gainer, followed by 0.1% higher Healthcare index.

FIIs net sold stocks, index futures and stock futures worth Rs 2107 cr, 2421 cr and 6092 cr respectively. DIIs were net buyers to the tune of Rs 1240 cr.

Rupee ended flat at 83.97/$.

HDFC Bank shares tumbled as MSCI announced that the Bank's weightage on the MSCI Global Standard Index will increase in two tranches, while the street had anticipated the same to take place in one go.

Today morning, Nikkei is up a percent while Hang Seng and Shanghai are down 0.3% and 0.4% respectively. GIFT Nifty is suggesting around 50 points higher start for our market.

In yesterday's report we had said that 20-DMA, placed around 24550, continues to be immediate hurdle while 23893, the bottom made last week, was the important support.

Nifty plunged to 24116 before closing at 24139.

23893, the bottom made last week, continues to be important immediate support. 20-DMA, placed around 24500, continues to be immediate hurdle.

For Banknifty, 49659, the low made last week, is the immediate support, upon breach of which, 48860, the 61.8% retracement level of the upmove seen since the election result day bottom, would be the next downside level to eye. On the way up 21087, the upper end of the gap created by gap-down opening on 5th August, is the immediate hurdle.