17960 BELOW 18034; 18384 CONTINUES TO BE IMMEDIATE HURDLE

 

17960 BELOW 18034; 18384 CONTINUES TO BE IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow, helped by American Express, inched up 0.2% to hit record high while S & P 500 and Nasdaq, pulled down by Intel and Snap, fell 0.1% and 0.8% respectively on Friday.

 

Intel shares retreated 11.6% after reporting weaker-than-expected sales and a revenue miss. Snap nosedived 26.5% after it said its advertising business declined due to Apple’s privacy changes.

 

US 10-year treasury yield fell 3.9 basis points to 1.636%. Dollar index eased 0.2% to 93.61. Gold rose half a percent to $1792 per ounce.

 

WTI crude settled $1.26, or 1.5%, higher at $83.76 per barrel while Brent climbed 92 cents, or 1.09%, to $85.53 per barrel,

 

Shares of China Evergrande Group bounced in Hong Kong following reports that the embattled developer is set to pay off a coupon payment on a dollar-denominated bond.

 

European markets gained 0.2%-0.7%. U.K.’s GfK consumer confidence survey for October showed British consumers at their most downbeat since February. Eurozone October initial flash composite PMI for the euro zone came in at a six-month low of 54.3, down from 56.2 in September. U.K.'s composite PMI unexpectedly climbed to 56.8 from 54.9 in September, but retail sales fell 0.2% month-on-month in September, well below consensus expectations for a 0.5% rise.

 

For the week, US indices gained 1.1%-1.6%, extending the winning streak to third straight week. WTI crude rose 1.7% for its ninth consecutive up week while Brent gained 1% for its seventh straight weekly gain. Gold gained 1.5%.

 

AT HOME

 

After rising nearly three fourth of a percent in the initial trade, Sensex and Nifty plunged around a percent from the top of the day to end lower by 0.2% and 0.4% respectively, extending the losing streak to fourth straight day. Sensex lost 101 points to settle at 60821 while Nifty finished at 18114, down 63 points. Nifty mid-cap and small-cap indices tumbled 0.9% and 1.2% respectively, also falling for the fourth consecutive day. BSE Metal and Basic Material indices were the top losers among the sectoral indices, down 2.9% and 1.8% respectively while Realty index climbed 2.4%, becoming top gainer, followed by 0.7% higher Bankex.

 

FIIs net sold stocks, index futures and stock futures worth Rs 2698 cr, 610 cr and 1088 cr respectively. DIIs were net buyers to the tune of Rs 1030 cr.

 

Rupee depreciated 3 paise to end at 74.89/$.

 

For the week, Sensex and Nifty fell 0.8% and 1.2% respectively, snapping 2-week winning streak.

 

OUTLOOK

 

Today morning, Asian markets were trading with cuts of 0.1%-0.7% and SGX Nifty is suggesting a flattish start for our market.

 

In Friday's report we had said that 18384, the top made Thursday, was the immediate hurdle, while 18048, the bottom made Thursday, was the immediate support.

 

Nifty, after touching a high of 18314 in the initial trade, plunged to 18034, before closing at 18115.

 

Upon breach of last week's low, 18034, 20-DMA, placed around 17950, would be the  next support to eye.

 

18384 continues to be immediate hurdle, upon crossover of which, 18604, the top made during the week, would be the bigger hurdle to eye.

 

For Banknifty, 40700, followed by 41000 are the upside levels to eye. 39700 is the immediate support on the hourly chart.