19850 ABOVE 19633; 19400-19350 IS THE SUPPORT AREA

 

19850 ABOVE 19633; 19400-19350 IS THE SUPPORT AREA

 

WORLD MARKETS

 

On Monday, Dow inched up 0.2% while S & P 500 and Nasdaq ended lower by 0.1% and 0.2% respectively.

 

Yesterday, U.S. indices surged 1.4%-2.4% after a soft inflation reading boosted hopes of the Federal Reserve nearing the end of its interest rate-hiking cycle.

 

CPI was flat last month, as against expectation of a gain of 0.1% month over month. In the 12 months through October, CPI climbed 3.2% after rising 3.7% in September. Core CPI, which strips out food and energy prices, was up 4%, the slowest rate in two years.

 

U.S. 10-year treasury yield fell 13 bps to 4.451%. Dollar index nosedived 1.5% to 104.07. Gold rose 0.9% to $1963 per ounce.

 

Late Tuesday, the House of Representatives passed a bill to avert a government shutdown.

 

Brent futures fell 5 cents to $82.47 a barrel, while WTI crude held steady at $78.26.

 

European markets gained 0.2%-1.7%.

 

AT HOME

 

Benchmark indices fell nearly half a percent, giving away most of yesterday's gains. Sensex settled at 64933, down 325 points while Nifty lost 82 points to finish at 19443. Nifty mid-cap and small-cap indices gained 0.1% and 0.7% respectively. Except 2.6% and 0.4% higher PSU Bank index and Metal indices respectively, all the NSE sectoral indices ended lower, with Consumer Durables and IT indices being the top losers, down 0.8% and 0.7% respectively.

 

FIIs net sold stocks and stock futures worth Rs 190 cr and 98 cr respectively but net bought index futures worth Rs 616 cr. DIIs were net buyers to the tune of Rs 95 cr.

 

Rupee appreciated 1 paise to end at 83.33/$.

 

India's retail inflation eased to four-month low at 4.87% in October from 5.02% in September.

 

OUTLOOK

 

Japan’s provisional GDP fell 2.1% in the third quarter compared to a year ago, against an estimate of a 0.6% decline.

 

Today morning, Asian markets are trading with gains of 0.7%-2.4% and GIFT Nifty is suggesting nearly 200 points gap-up start for our market.

 

In Monday's report we had said that 19633, the 78.6% retracement level of the recent 19850-18837 fall, was next upside target to eye while 19329, the low made on Friday, was the immediate support, with the stop-loss of which, trading longs could be held on to.

 

Nifty fell to 19414 before closing at 19443. The benchmark is set to open above 19600 today.

 

19633, the 78.6% retracement level of the recent 19850-18837 fall, followed by 19850, the top made in mid-October, are the next upside targets to eye; 19400-19350 is the immediate support zone, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 44153, the 78.6% retracement level of the recent 44700-42100 fall, followed by 44700, the top made in October, are the next upside levels to eye; 43600 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

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