18604 CONTINUES TO BE UPSIDE TARGET; 18250-18200 IS THE SUPPORT ZONE

 

18604 CONTINUES TO BE UPSIDE TARGET; 18250-18200 IS THE SUPPORT ZONE

 

WORLD MARKETS

 

Dow was little changed while S & P 500 and Nasdaq fell 0.3% each as Fed officials signaled their rate-hiking campaign to slow inflation is far from over.

 

St. Louis Fed President Bullard said that “the policy rate is not yet in a zone that may be considered sufficiently restrictive.” Kansas City Fed President Esther George said she’s “looking at a labor market that is so tight, I don’t know how you continue to bring this level of inflation down without having some real slowing, and maybe we even have contraction in the economy to get there.”

 

Cisco Systems jumped nearly 5%, after the company surpassed expectations in its fiscal first-quarter report, and issued upbeat guidance.

 

US Housing starts fell 4.2% from the prior month to a seasonally adjusted annual rate of 1.425 million in October.

 

US 10-year treasury yield rose 8 bps to 3.771%. Dollar index rose 0.4% to 106.69. Gold fell 0.8% to $1760 per ounce.

 

Oil prices tumbled on mounting COVID-19 cases in China and fears of more aggressive hikes in U.S. interest rates. Brent crude fell 3% to $90.05 a barrel and WTI tumbled 4.1% to settle at $82.05 per barrel.

 

In Europe, FTSE and CAC fell 0.1% and 0.5% respectively while DAX rose 0.2%.

 

AT HOME

 

Benchmark indices ended lower by four tenth of a percent after a choppy session. Sensex settled at 61750, down 230 points while Nifty lost 65 points to finish at 18343. Nifty mid-cap and small-cap indices fell 0.4% and 0.3% respectively. Except 0.8% and 0.04% higher PSU Bank and Realty indices respectively, all the NSE sectoral indices ended in red, with Auto and Consumer Durables indices leading the losses, down 1.4% each.

 

FIIs net bought stocks and stock futures worth Rs 618 cr and 587 cr respectively but net sold index futures worth Rs 408 cr. DIIs were net buyers to the tune of Rs 449 cr.

 

Rupee depreciated 35 paise to end at 81.65/$.

 

OUTLOOK

 

Today morning, Hang Seng is up 1% while Nikkei and Shanghai are up 0.1% each. SGX Nifty is suggesting around 40 points higher start for our market.

 

In yesterday's report we had said that 18604, the all-time high made in October 2021, continued to be upside target to eye and that 18200 continued to be immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

Nifty, after touching a high of 18417, slipped to end at 18343.

 

18604, the all-time high made in October 2021, continues to be upside target to eye; 18250-18200 is the immediate support area, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 43000 is the next upside levels to eye; 41900 continues to be immediate support, with the stop-loss of which, trading longs can be held on to.