17450 BELOW 17616; 18025 IS IMMEDIATE HURDLE

 

17450 BELOW 17616; 18025 IS IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices gained 0.2%-0.3% on Friday to close at record highs

 

Core personal consumption expenditures - the Fed’s preferred inflation measure - climbed at a 4.4% annual rate in September, the highest in three decades. Personal income fell 1% in September, more than the 0.4% decline expected. Consumer spending rose 0.6%, matching expectations. The University of Michigan’s final October consumer sentiment reading came in slightly better than expected at 71.7.

 

US 10-year treasury yield was little changed at 1.563%. Dollar index climbed 0.8% to 94.102. Spot gold fell 0.9% to $1,782.23 per ounce  to their lowest in over a week.

 

Brent crude settled 0.1% higher at $84.38 per barrel and WTI crude rose 0.9% to $83.57.

 

In Europe, FTSE and DAX were down 0.2% and 0.05% respectively while CAC rose 0.4%. Inflation in the euro zone rose to 4.1% in October, hitting a 13-year high.

 

For the month, US indices gained 5.8%-7.3%, with The S&P 500 and Nasdaq clinching their best months since November 2020.

 

China’s official manufacturing PMI for October came in at 49.2 over the weekend, contracting for the second straight month, following September’s official manufacturing PMI reading of 49.6.

 

AT HOME

 

Benchmark indices ended lower by a percent after a volatile session, extending the losing streak to third straight day and closing at the lowest level since 6th October. Sensex settled at 59306, down 677 points while Nifty lost 185 point to finish at 17671. Nifty mid-cap and small-cap indices eased 0.2% and 0.5% respectively. BSE Energy and IT index slipped 1.9% and 1.6% respectively, becoming top losers among the sectoral indices while Basic Material and Realty indices were the top gainers, up 0.5% each.

 

FIIs net sold stocks worth Rs 5143 cr but net bought index futures and stock futures worth Rs 690 cr and 1506 cr respectively. DIIs were net buyers to the tune of Rs 4343 cr.

 

Rupee appreciated 5 paise to end at 74.87/$.

 

For the week, Sensex and Nifty fell 2.5% each, registering their biggest weekly fall in eight months and extending the losing streak to second consecutive week.

 

OUTLOOK

 

Today morning, Nikkei is up more than 2% while Hang Seng and Shanghai are down 1% and 0.3% respectively. SGX Nifty is suggesting around 70 points higher start for our market.

 

In Friday's report we had said that 17799 was the immediate support, below which, 17600 and 17450 would be subsequent downside levels to eye.

 

Nifty plunged all the way to 17613 and closed at 17671.

 

17613, the low made on Friday, also coincides with the low made on 6th October and also with a trendline adjoining recent bottoms on the daily chart. Hence, 17613 is the immediate support. Below 17613, 17453, the bottom made in October, would be the next support.

 

20-DMA, placed around 18025, is the immediate hurdle.

 

38426, the low made Friday, also coincides with 34-DMA and hence is the important immediate support to eye. Below 38426, 37450 and 36876 would be subsequent downside levels to eye. 40600-40800 is the immediate resistance zone.

 

Auto sales for October will be out today.

 

HDFC and Tata Motors will report their quarterly earnings today.