19300 CONTINUES TO BE IMMEDIATE HURDLE; 18940 IMMEDIATE SUPPORT

 

19300 CONTINUES TO BE IMMEDIATE HURDLE; 18940 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

U.S. indices gained 0.7%-1.6% after the Federal Reserve left rates unchanged for a second consecutive meeting and upgraded its assessment of the economy.

 

The central bank kept interest rates unchanged, holding the key federal funds rate at the 5.25%-5.5% set in July. At a post decision conference, Fed Chair Powell said he would not rule out a rate increase at the December meeting,

 

The ISM manufacturing index showed manufacturing activity contracted more than expected in October.

 

U.S. 10-year treasury yield plunged 20 bps to 4.734%. Dollar index was flat at 106.67. Gold too was little changed at $1982 per ounce.

 

Brent futures fell 0.2% to $84.82 a barrel, while WTI crude fell 0.5% to $80.65.

 

European markets gained 0.3%-0.9%. Euro zone economy contracted by 0.1% in the third quarter, below a forecast of stagnation.

 

In China factory activity unexpectedly contracted in October, a private survey showed, adding to downbeat official figures from a day earlier.

 

AT HOME

 

Benchmark indices dipped nearly half a percent, extending yesterday's weakness. Sensex settled at 63591, down 284 points while Nifty lost 90 points to finish at 18989. Nifty mid-cap and small-cap indices fell 0.3% and 0.1% respectively, snapping a 3-day winning streak. Nifty Metal index was the top loser among the sectoral indices, down 1.4%, followed by 0.8% lower IT index. Realty index surged 1.6% to become top gainer, followed by 0.8% higher Media index.

 

Rupee depreciated 4 paise to end at 83.29/$.

 

India's October GST revenue collection surged 13% y-o-y to Rs. 1.72 lkcr, which is second highest ever monthly number.

 

India's October manufacturing PMI fell to an 8-month low of 55.5, down from 57.5 in the previous month.

 

Maruti October sales rose 19.1% y-o-y to 1.99 lk units. Hero Motocorp sold 5.74 lk units, a growth of 26%. Bajaj Auto sales rose 19% to 4.71 lk units. Eicher Motors' CV sales rose 24% to 7486 units. TVS Motor sales were up 21% at 4.34 lk units. Tata Motors sold 80825 units, a growth of 80825 units. On the flip side, Escorts tractor sales dipped 8.9% to 13205 units. M & M auto sales were up 32% at 80679 units but tractor sales fell 3% to 50460 units.

 

Sun Pharma reported a steady quarter as revenue grew 11% led by strong U.S. generic sales. Hero Motocorp results beat estimates.

 

OUTLOOK

 

Today morning, Nikkei is up 1.3% while Hang Seng and Shanghai are little changed. GIFT Nifty is suggesting around 160 points gap-up start for our market.

 

In yesterday's report we had said that 19300 continued to be immediate hurdle on the hourly chart while 18940, the low made Monday, was the immediate support.

 

Nifty fell to 18973 before closing at 18989. The benchmark is set to open above 19100 today.

 

19300 continues to be immediate hurdle on the hourly chart; 18940, the low made Monday, continues to be immediate support, below which, 18837, the low made last week, would be crucial support to eye.

 

For Banknifty, 43400 continues to be immediate hurdle on the hourly chart, above which, 43715 and 44153, the 61.8% and 78.6% retracement levels of the recent 44700-42100 fall, would be next upside levels to eye; 42390, the low made Monday, is the immediate support below which, 42105, the low made last week, would be next downside level to eye.

 

Tata Motors, Adani Enterprises, Dabur and Godrej Properties will report their quarterly earnings today.

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