19444 BELOW 19512; 19750 IS IMMEDIATE HURDLE

 

19444 BELOW 19512; 19750 IS IMMEDIATE HURDLE

 

WORLD MARKETS

 

U.S. indices fell 0.8%-1% as 10-year treasury yield approached 5% mark after digesting comments from Fed Chair Powell.

 

Powell said inflation was still too high and would likely require lower economic growth, while also noting recent data showed progress toward slowing prices. He also said that monetary policy was not yet too tight.

 

Tesla slid more than 9% after the company missed analyst expectations on earnings and revenue in the third quarter. Netflix jumped 16% for its best day since January 2021 after the streaming giant posted third-quarter earnings that beat estimates.  AT&T climbed more than 6% after beating expectations for the third quarter, while investment firm Blackstone slid nearly 8% on a weaker-than-expected report.

 

Weekly jobless claims totaled 198,000 for the period ending Oct. 14, below the estimate for 210,000.

 

U.S. 10-year treasury yield rose 8 bps to 4.992%. Dollar index fell 0.3% to 106.24. Gold surged 1.3% to $1973 per ounce.

 

Brent futures rose 1% to $92.38 a barrel while WTI futures settled up 1.2% at $89.37 a barrel.

 

European markets fell 0.3%-1.4%

 

AT HOME

 

After falling eight tenth of a percent, benchmark indices recouped half of the losses to end lower by four tenth of a percent. Sensex settled at 65629, down 247 points while Nifty lost 46 points to finish at 19624. Nifty mid-cap index fell 0.1% while small-cap index rose 0.2%.  Nifty Metal and Oil & Gas indices were the top losers among the sectoral indices, down 0.9% and 0.5% respectively while Auto and Consumer Durables indices were the top gainers, up 0.5% and 0.2% respectively.

 

FIIs net sold stocks and index futures worth Rs 1093 cr and 392 cr respectively but net bought stock futures worth Rs 593 cr. DIIs were net buyers to the tune of Rs 736 cr.

 

Rupee appreciated 1 paise to end at 83.25/$.

 

Hindustan Unilever reported operationally strong quarter along with bottomline beating estimate while revenue and volume growth missed the estimate marginally. Nestle India met estimates even as volume growth of 4% was below estimate. Ultratech met estimate with revenue rising over 15%. ITC reported strong internals with Cigarette, FMCG and Hotel verticals beating estimate.

 

OUTLOOK

 

Japan’s September inflation came in at 3%, the 18th straight month above the BOJ’s 2% target.

 

Today morning, Asian markets are trading with cuts of 0.2%-0.6% and GIFT Nifty is suggesting nearly 100 points lower start for our market.

 

In yesterday's report we had said that, upon breach of first hour low, 19480, the low made last week, would be next downside levels to eye.

 

Nifty plunged all the way to 19512 and rebounded from there to end at 19624. The benchmark is set to open below 19550 today.

 

19512, the low made yesterday, is the immediate support, upon breach of which, 19444, the 78.6% retracement level of the recent 19333-19850 upmove, would be next downside level to eye; 19750 is the immediate hurdle on the hourly chart.

 

For Banknifty, upon breach of 43558, which is low made yesterday, 200-DMA, placed around 43200, would be next support to eye; 44300 is immediate hurdle on the hourly chart.

 

JSW Steel will report its quarterly earnings today.

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