19780 ABOVE 19620; 19333 CONTINUES TO BE IMMEDIATE SUPPORT

 

19780 ABOVE 19620; 19333 CONTINUES TO BE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

U.S. indices recovered from intraday lows to end marginally in the red ahead of September jobs report due Friday.

 

Jobless claims totaled 207,000 for the week ended Sept. 30, up just 2,000 from the previous period and below the estimate for 210,000.

 

U.S. 10-year treasury yield fell 2 bps to 4.719%. Dollar index fell 0.4% to 106.34. Gold was flat at $1820 per ounce.

 

Brent futures settled 2.03% lower at $84.07 and WTI crude futures were 2.3%, lower at $82.31 a barrel.

 

In Europe, FTSE rose half a percent, CAC was little changed while DAX fell 0.2%.

 

AT HOME

 

Benchmark indices gained 0.6% each, bouncing back from 1-month low tested yesterday. Sensex settled at 65631, up 405 points while Nifty added 109 points to finish at 19545. Nifty mid-cap index ended flat while small-cap index gained 0.6%. Nifty Media and IT indices were the top gainers among the sectoral indices, up 1.6% and 1% respectively while PSU Bank and Healthcare indices were the top losers, down 0.5% and 0.4% respectively.

 

FIIs net sold stocks worth Rs 1864 cr but net bought index futures and stock futures worth Rs 524 cr and 1501 cr respectively. DIIs were net buyers to the tune of Rs 521 cr.

 

Rupee depreciated 1 paise to end at 83.25/$.

 

India September services PMI stood at 61, up from 60.1 month-on-month. The composite PMI inched up to 61 from 60.9.

 

OUTLOOK

 

Today morning, Hang Seng is up 1.6% while Nikkei is marginally in the red. GIFT Nifty is suggesting around 35 points higher start for our market.

 

In yesterday's report we had said that 19333, the low made Wednesday coincided with lower band of daily bollinger band and hence was the immediate support to eye while on the way up, 34-DMA, placed around 19620, would act as immediate hurdle.

 

Nifty rose to 19576 before closing at 19545.

 

34-DMA, placed around 19620, continues to be immediate hurdle, upon crossover of which, 20-DMA, placed around 19780, would be next upside target; 19333, the low made Wednesday, continues to be immediate support.

 

For Banknifty, 44500-44600 is the immediate resistance zone, above which, 45000 would be next target; 43800 is the immediate support, below which, 43600 would be next downside level to eye.

 

RBI's Monetary Policy Committee is widely expected to keep interest rate unchanged and also maintain the stance at "Withdrawal of accommodation". However, markets would watch out for any possible rise in inflation projection and tone of the policy, which is expected to be hawkish.

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