17800 ABOVE 17600; 17250 CONTINUES TO BE IMMEDIATE SUPPORT

 

17800 ABOVE 17600; 17250 CONTINUES TO BE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

After a positive start, US indices slipped to end with cuts of 0.3%-0.8% as investors digested earnings and rising Treasury yields.

 

Economic data was mixed. Initial jobless claims came in at 214,000, below the 230,000 expected. However, the Philadelphia Fed manufacturing index showed a larger than expected decline. Also, U.S. existing home sales dropped for an eighth straight month in September.

 

Corporate earnings were a mixed bag. AT&T and IBM jumped after beating estimates. But Snap and Robert Half fell after posting results that fell short of expectations.

 

US 10-year treasury yield rose 10 bps to 4.23%. Dollar index was flat at 112.85. The British pound rose against the dollar after U.K. Prime Minister announced her resignation. Spot gold fell 0.1% to $1,628 per ounce.

 

Brent crude futures rose 14 cents to settle at $92.57 a barrel. WTI for December delivery edged down 1 cent at $84.51 per barrel.

 

European markets rose 0.2%-1.1%

 

AT HOME

 

After starting half a percent lower, Sensex and Nifty rebounded smartly through the session to end higher by 0.2% and 0.3% respectively, extending the winning streak to fifth straight day. Sensex settled at 59202, up 95 points while Nifty finished at 17563, up 51 points. Nifty mid-cap index fell 0.3% while small-cap index inched up 0.1%. Nifty PSU Bank and Oil & Gas indices climbed 1.9% and 1.5% respectively, becoming top gainers among the sectoral indices while Consumer Durables and Bank indices were the top losers, down 0.8% and 0.7% respectively.

 

FIIs net bought stocks and stock futures worth Rs 1865 cr and 1249 cr respectively but net sold index futures worth Rs 1785 cr. DIIs were net sellers to the tune of Rs 887 cr.

 

Rupee appreciated 26 paise to end at 82.76/$.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are down 0.2% and 0.1% respectively while Shanghai is up 0.2%. SGX Nifty is suggesting around 40 points lower start for our market.

 

In yesterday's report we had said that 17607, the top made Wednesday, which roughly coincided with 61.8% retracement level of the recent 18096-16747 fall, was the immediate hurdle while immediate support on the hourly chart had moved up to 17250, with the stop-loss of which, trading longs coul be held on to.

 

Nifty, after touching a low of 17421, rebounded to end at 17563.

 

17607, the top made Wednesday, which roughly coincided with 61.8% retracement level of the recent 18096-16747 fall, continues to be immediate hurdle, upon crossover of which, 17807, the 78.6% retracement level of this fall, would be the next target; 17250 continues to be immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 40760, the 78.6% retracement levels of the recent 41677-37386 fall, is the next upside levels to eye; 39450 is the immediate support.

 

Reliance Industries, HUL, Bajaj Finserve, JSW Steel, Ambuja Cement, HDFC Life and SBI Life will report their quarterly earnings today.