NIFTY CLOSE TO CRUCIAL 8500 SUPPORT; TRAIL STOP-LOSS IN SHORTS TO 8600

NIFTY CLOSE TO CRUCIAL 8500 SUPPORT; TRAIL STOP-LOSS IN SHORTS TO 8600

WORLD MARKETS                             

US equity indices fell 0.4%-0.9% yesterday after the Federal Reserve kept interest rates unchanged, while worries surrounding the presidential election along with fall in oil weighed on sentiment.

The Federal Reserve held interest rates steady again while continuing to acknowledge that the case for a move is getting stronger.

U.S. oil tumbled 2.8% to settle at $45.34 per barrel after the Energy Information Administration reported a crude stockpile build of 14.4 million barrels, the largest increase on record.

ADP said the U.S. economy created less jobs than expected in October, adding 147,000 jobs.

European markets tumbled 1%-2.5%. The euro area's October final manufacturing PMI index came in at 53.5, compared to 52.6 in September, growing close to a three-year high.

AT HOME

Sensex and Nifty plunged a percent and quarter to close at the lowest level since 8th July 2016 and 21st July 2016 respectively. Sensex lost 349 points to settle at 27527 while Nifty finished at 8514, down 112 points. BSE mid-cap and small-cap indices tumbled 1.8% each. All the BSE sectoral indices ended in red with Oil & Gas and Energy indices leading the losses, down 2.8% and 2.5% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 667 cr, 803 cr and 63 cr respectively. DIIs were net buyers to the tune of Rs 407 cr.

M & M reported 1.2% y-o-y and 12.7% q-o-q growth in October sales at 52008 units but tractor sales shot up 61% y-o-y to 45177 units. Hero Motocorp sold 6.63lakh units, up 4% y-o-y. TVS reported a strong 12% y-o-y growth at 3.08 lac units.

OUTLOOK

Today morning Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 10 points lower start for our market.

For past many sessions, we have been mentioning that Nifty is in a consolidation phase after a big six-month upmove and the floor of this consolidation phase is placed around 8500.

The benchmark, after touching a low of 8505, closed at 8514 yesterday and is set to open close to 8500 mark today.

A close below 8500 would mark a breakdown from the above mentioned consolidation phase and next meaningful target to eye in that case would be 8300, where the 34 week moving average is placed.

Immediate resistance on the hourly chart has moved lower to 8600, with the stop-loss of which short positions can be held on to.

Two-day meeting of the GST Council begins today to deliberate on crucial issues like rate slabs and cess.

Ambuja Cements will report its quarterly earnings today.