NIFTY BREAKS 11850 SUPPORT; STAY SHORT WITH THE STOP-LOSS OF 11950

NIFTY BREAKS 11850 SUPPORT; STAY SHORT WITH THE STOP-LOSS OF 11950

WORLD MARKETS

Dow and S & P 500 gained 0.3% and 0.1% respectively while Nasdaq ended marginally in the red as Disney shares surged while markets digested testimony from the Fed Chair Powell.

In his address to the Congressional Joint Economic Committee, U.S. Federal Reserve Chairman Jerome Powell said the path of the central bank’s interest rates is unlikely to change as long as the economy keeps growing.

Disney jumped 7.4% after Disney+ streaming service got more than 10 million sign-ups after launching on Tuesday.

Gains were capped after media reports suggested U.S.-China trade talks have hit a snag over agricultural purchases. The report also said Beijing is resisting requests from the U.S. to curb tech transfers as well as enforcement mechanisms.

U.S. consumer price index rose 0.4% in October the expected figure being 0.3%.

Brent futures rose 31 cents to $62.37, while WTI rose 32 cents to $57.17 per barrel.

Main European markets fell 0.2%-0.4%. U.K. inflation, at 1.5%, dipped to its lowest level in almost three years in October, down from 1.7% in September. Euro zone industrial production exceeded expectations to increase for the second consecutive month in September, rising 0.1% as output from France and the Netherlands offset declines in Germany and Italy.

AT HOME

Benchmark indices slipped six tenth of a percent to close at two-week low. Sensex settled at 40116, down 229 points while Nifty lost 73 points to finish at 11840. BSE mid-cap and small-cap indices slumped 0.8% and 1.1% respectively. BSE Metal and Realty indices were the top losers among the sectoral indices, falling 2.3% and 2% respectively while Energy index climbed 1.6%, becoming top gainer, followed by 0.4% higher Consumer Durables index.

FIIs net bought stocks worth Rs 585 cr but net sold index futures and stock futures worth Rs 172 cr and 388 cr respectively. DIIs were net sellers to the tune of Rs 890 cr.

Rupee depreciated 63 paise to end at 72.09/$.

Retail inflation accelerated to 4.62%, its highest level in 16-months, in October. Core inflation however eased to 3.5% from 4.2%.

OUTLOOK

Today morning, Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 25 points higher start for our market.

For past couple of days we have been reiterating that 11850 was the immediate support while 12103 was the immediate hurdle.

After holding on to 11850 support on Monday, Nifty broke through this support yesterday and touched a low of 11823 before closing at 11840.

Next meaningful support will come around 11700, which earlier used to be a tough resistance.

Immediate hurdle on the hourly chart is placed around 11950, with the stop-loss of which, trading shorts can be held on to.

Bharti Airtel, ONGC and Vedanta will report their quarterly earnings today.