NIFTY HOLDS 10200 ON CLOSING BASIS; 10482 CONTINUES TO BE IMMEDIATE HURDLE

NIFTY HOLDS 10200 ON CLOSING BASIS; 10482 CONTINUES TO BE IMMEDIATE HURDLE

WORLD MARKETS

Dow and S & P 500 plunged 2.1% each while Nasdaq fell 1.2%, extending previous day's sell-off, as investors fled riskier assets like stocks and loaded up on traditional safe havens like bonds and gold.

Treasury yields pulled back from multiyear highs following soft reading on inflation. The consumer price index rose 0.1% in September, well below the expected gain of 0.2%.

US crude tubled $2.20 or 3% to settle at $70.97 while Brent fell $2.83 or 3.4% to $80.26 a barrel. Data from US U.S. Energy Information Administration showed crude inventories climbed by 6 million barrels in the week to Oct. 5, compared with analyst expectations for an increase of 2.6 million barrels.

Trump, reacting to market correction, said "It's a correction that I think is caused by the Fed and interest rates."

Gold futures surged 2.6% to $1,224.60 per ounce.

European markets fell 1.5%-2%.

AT HOME

After plunging 3% at the open in reaction to brutal sell-off in US markets, benchmark indices recouped some of the losses through the choppy session to end lower by 2.2%. Sensex settled at 34001, down 760 points while Nifty lost 225 points to finish at 10234. Sensex and Nifty closed at the lowest level since 4^th April 11^th April 2018 respectively. BSE mid-cap and small-cap indices fell 2.3% and 1.4% respectively. Except 2.9% and 0.2% higher Oil & Gas and Energy indices respectively, all the BSE sectoral indices ended in red with IT and Realty indices leading the losses, down 3.2% each.

FIIs net sold stocks and index futures worth Rs 2869 cr and 1143 cr respectively but net bought stock futures worth Rs 227 cr. DIIs were net buyers to the tune of Rs 1888 cr.

Rupee appreciated 8 paise to end at 74.12/$.

TCS reported lower-than-expected net profit and constant-currency revenue growth for the September quarter but managed to outperform on EBIT and met estimate on margins front. Dollar revenue growth at 3.2% was in-line with estimates but constant currency revenue growth at 3.7% was a miss. Net profit rose 7.6% to Rs. 7901 cr. Margins improved 150 bps to 26.5%, a seven .

The government yesterday announced increased import duty on several electronic items and telecom equipment to rein in current account deficit (CAD) and stabilise the rupee.

OUTLOOK

Today morning, Hang Seng is up 0.3% while Nikkei and Shanghai are down half a percent each. SGX Nifty is suggesting about 50 points higher start for our market.

In yesterday's report we had said that "10200 continues to be immediate support, upon sustained trading below which, 9951 would be the next major support to eye". Nifty, after touching a low of 10138 in the initial trade, rebounded to end at 10234, holding on to 10200 support on closing basis.

10138, the bottom made yesterday, is now the immediate support, below which, 9951 would be the next crucial support to eye. 10482, the top made on Wednesday, continues to be immediate hurdle, upon crossover of which, 200-DMa, placed around 10780, would be the next major hurdle to eye.

HUL and Karnataka Bank will report their quarterly earnings today.

September CPI will be released today and is expected to inch up to 4.16% from 3.69% in August. August IIP growth is expected to ease to 4% from 6.6%.