17850 IS THE NEXT SUPPORT; 18150 IMMEDIATE HURDLE

 

17850 IS THE NEXT SUPPORT; 18150 IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices surged 0.7%-1.4%, with the S&P 500 and Nasdaq Composite closing at record highs as investors shrugged off disappointing economic data.

 

The U.S. economy grew at a 2% annualized pace in the third quarter, its slowest increase since the end of the 2020 recession and missing expectations of 2.8% growth.

 

US 10-year treasury yield rose nearly 5 bps to 1.577%. Dollar index fell 0.6% to 93.36, a one-month low. Spot gold rose 0.3% to $1,801.43 per ounce.

 

Amazon shares dropped in extended trading after the company badly missed earnings and revenue expectations for the third quarter and also issued disappointing guidance for the critical holiday period. Apple fell 4% after quarterly revenue fell short of expectations amid larger-than-expected supply constraints on iPhones, iPads and Macs.  

 Brent crude settled 26 cents, or 0.31%, lower at $84.32 per barrel while WTI crude settled 15 cents, or 0.18%, higher at $82.81 per barrel.

 

In Europe, FTSE and DAX were marginally lower, while CAC climbed 0.8%. The European Central Bank decided to keep interest rates and its monetary policy stance unchanged, despite ongoing inflationary pressures.

 

AT HOME

 

Benchmark indices nosedived nearly 2%, suffering their worst fall since 12th  April, 2021 and closing at the lowest level since 7th October. Sensex settled at 59984, down 1158 points while Nifty lost 353 point to finish at 17857. Nifty mid-cap and small-cap indices slipped 2% and 1.8% respectively. All the BSE sectoral indices ended in red, with Realty index and Bankex leading the losses, down 3.8% and 3.4% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 3819 cr, 1129 cr and 1382 cr respectively. DIIs were net buyers to the tune of Rs 837 cr.

 

Rupee appreciated 10 paise to end at 74.92/$

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.3%-0.7% and SGX Nifty is suggesting around 20 points higher start for our market.

 

In yesterday's report we had said that 18384 continued to be immediate hurdle, a crossover of which is required for a fresh upmove and that 17968, the bottom made Monday, continued to be immediate support.

 

Nifty broke 17968 support and plunged all the way to 17799 before closing at 17857.

 

34-DMA, placed around 17850, is the next important support to eye. Below 17850, 17600 and 17450 would be subsequent downside levels to eye.

 

18150 is the immediate hurdle on the hourly chart, above which, 18342, the top made on Wednesday, would be the next resistance.

 

Meanwhile, trading shorts can be held on to with the stop-loss of 18150.

 

39000, 38400 are supports for Banknifty; 40800 is immediate hurdle.