STAY LONG WITH THE STOP-LOSS OF 17800

 

STAY LONG WITH THE STOP-LOSS OF 17800

 

WORLD MARKETS

 

US indices fell 0.1%-0.3%, extending the losing streak to third consecutive day, after the International Monetary Fund slashed its global growth forecast for 2021, citing supply disruptions and the pandemic. Markets are also awaiting minutes of the latest Fed meeting, key inflation report and start of earnings season due today.

 

IMF trimmed its 2021 global growth forecast to 5.9% from the earlier 6.0%. It left a 2022 global growth forecast unchanged at 4.9%.

 

U.S. job openings in August fell by more than half a million to 10.4 million, according to data released by the Labor Department.

 

US 10-year Treasury yield dipped 3.5 bps to 1.57%. Dollar index rose 0.2% to 94.51, hitting its highest level in one-year. Spot gold rose 0.3% to $1,759.31 per ounce.

 

Brent crude settled 23 cents lower at $83.42 per barrel while U.S. oil futures settled 12 cents higher at $80.64 per barrel.

 

In Europe, FTSE fell 0.2% while DAX and CAC eased a third of a percent each. Germany's latest ZEW economic sentiment index fell to 22.3 points, below an estimate of 24.0, while current conditions sentiment plunged to 10.3 points to 21.6 against a forecast of 28.5.  U.K. added 207,000 jobs in September, taking British employers’ payrolls to a record high as the end of the government’s furlough program draws near.

 

China announced plans to liberalize coal-fired power pricing as the country faces a energy crisis.

 

AT HOME

 

After falling nearly half a percent, benchmark indices rebounded in noon trade to end higher by a fourth of a percent, extending the winning streak to fourth consecutive day. Sensex settled at 60284, up 148 points while Nifty added 46 points to finish at 17992. Nifty mid-cap and small-cap indices gained 0.6% and 0.8% respectively. BSE Consumer Durables index climbed 2.8%, becoming top gainer among the sectoral indices, followed by 1.2% higher Consumer Discretionary Goods & Services and FMCG indices. IT, Telecom and Teck indices were the top losers, down 0.9% each.

 

FIIs net sold stocks, index futures and stock futures worth Rs 278 cr, 1199 cr and 1456 cr respectively. DIIs were net sellers to the tune of Rs 741 cr.

 

Rupee depreciated 15 paise to end at 75.51/$.

 

IMF maintained India's FY22 GDP growth forecast at 9.5%.

 

India's retail inflation, as measured by CPI, fell to a 5-month low of 4.4% from 5.3% in August. Core CPI remained unchanged at 5.8%. Industrial production, as measured by IIP, grew 11.9% in August, up from 11.5% in July.

 

OUTLOOK

 

Today morning, Hang Seng and Shanghai are down 1.4% and 0.6% respectively while Nikkei is off 0.2%. SGX Nifty is suggesting around 40 points higher start for our market.

 

In yesterday's report we had said that 17800-177750 was the immediate support zone while 18100 continues to be next upside target.

 

Nifty, after touching a low of 17865, rebounded to end at 17991 and is set to open near 18050 today.

 

18100-18150 is the next target zone for Nifty; 17800 is the immediate support, with the stop-loss of which, trading longs can be held on to.

 

39000 is the next target for Banknifty; 38000 is immediate support.

 

Infosys and Wipro will report their quarterly earnings today.