17850 CONTINUES TO BE IMMEDIATE SUPPORT

 

17850 CONTINUES TO BE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices fell 0.5%-1.7%, extending the losing streak to fourth consecutive session, further digesting comments from Fed Chair Powell and awaiting October nonfarm payrolls report due Friday.

 

Economic data was mixed. The number of Americans filing new claims for unemployment benefits unexpectedly fell last week while U.S. services industry grew at its slowest pace in nearly 2-1/2 years in October.

 

US 10-year treasury yield rose around 5 bps to 4.15%. Dollar index climbed 0.8% to 112.98. Gold fell 0.4% to $1629 per ounce.

 

Brent futures fell 1.5% to $94.67 a barrel and WTI crude fell 2.0% to settle at $88.17.

 

Bank of England delivered its highest interest rate hike in 33 of 75 bps, while noting that its projections for growth and inflation indicated a “very challenging” outlook for the U.K. economy, as it looks to bring inflation back toward its 2% target.

 

In Europe, FTSE rose 0.6% but DAX and CAC fell 1% and 0.5% respectively.

 

AT HOME

 

After falling nearly two-third of a percent in the initial trade, Sensex and Nifty recouped most of the losses through the session to end lower by 0.1% and 0.2% respectively. Sensex settled at 60836, down 70 points while Nifty lost 30 points to finish at 18052. Nifty mid-cap and small-cap indices gained 0.3% and 0.2% respectively. Nifty IT and Consumer Durables indices fell 1.2% and 0.5% respectively, becoming top losers among the sectoral indices while PSU Bank index surged 2.5% to become top gainer, followed by 0.6% higher Realty index.

 

FIIs net sold stocks, index futures and stock futures worth Rs 732 cr, 1008 cr and 46 cr respectively. DIIs were net buyers to the tune of Rs 678 cr.

 

Rupee depreciated 10 paise to end at 82.88/$.

 

The S&P Global India services Purchasing Managers' Index edged up to 55.1 in October from September's six-month low of 54.3. Composite PMI rose to 55.5 from 55.1.

 

OUTLOOK

 

Today morning, Hang Seng and Shanghai are up 3% and 1% respectively while Nikkei is down 2%. SGX Nifty is suggesting a flattish start for our market.

 

In yesterday's report we had said that 18350, the calendar 2022 top made in January, continued to be next upside level to eye while 17850-17800 was the immediate support area, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a low of 17959, rebounded to end at 18052.

 

18350, the calendar 2022 top made in January, continues to be next upside level to eye; 17850 continues to be immediate support, with the stop-loss of which, trading longs could be held on to.

 

For Banknifty, 41840, the all-time high made in September, continues to be  immediate hurdle, upon crossover of which, 42200 would be next upside level to eye; 40800 continues to be immediate support on the hourly chart, below which, 34-DMA, placed around 40000, would be next support.

 

Cipla, Britannia and Titan will report their quarterly earnings today.