11590 BELOW 11661; 11929 IS THE IMMEDIATE HURDLE

 

11590 BELOW 11661; 11929 IS THE IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices nosedived 3.4%-3.7% on worries over sustained increase in coronavirus cases, with the Dow and S & P 500 suffering their worst fall since June 11 and extending the losing streak to fourth and third day respectively.

 

New Covid-19 cases, hospitalizations and deaths continue to surge across US and Europe and reports suggested that Germany and France are preparing new lockdown restrictions. Mainland China also reported its highest number of daily new cases for more than two months on Wednesday.

 

Earlier, U.S. President Trump on Tuesday acknowledged that there will be no coronavirus relief bill before election day.

 

Brent futures fell $2.12, or 5.2%, to $39.08 a barrel, while WTI crude settled 5.5%, or $2.18, lower at $37.39 per barrel, its lowest level in three weeks.

 

The safe-haven U.S. dollar rose 0.5%. Gold fell as much as 2% and silver nearly 6%.

 

European markets slipped 2.5%-4.2% with DAX leading the losses.

 

AT HOME

 

Sensex and Nifty tumbled 1.5% and 1.3% respectively, giving away more than they had gained in yesterday's rebound and closing at nearly two-week low. Sensex settled at 39922, down 600 points while Nifty lost 160 points to finish at 11729. BSE mid-cap and small-cap indices fell 0.9% and 0.8% respectively. Except 2.9% and 0.3% higher Telecom and Capital Goods indices respectively, all the BSE sectoral indices ended in red with Bankex and Finance indices leading the losses, down 2.3% each.

 

FIIs net sold stocks and index futures worth Rs 1131 cr and 1905 cr respectively but net bought stock futures worth Rs 1350 cr. DIIs were net buyers to the tune of Rs 1 cr.

 

Rupee depreciated 17 paise to end at 73.87/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.7%-1.2% and SGX Nifty is suggesting around 60 points lower start for our market.

 

In yesterday's report we had said that 11905 continued to be immediate hurdle while 11661, the bottom made on 15th October, continued to be the support to eye.

 

Nifty touched a high of 11929 in the initial trade but could not sustain there and plunged all the way to 11684 before closing at 11730. The benchmark is set to open below 11700 today.

 

11661, the bottom made on 15th October, continues to be immediate support to eye, upon breach of which, 34-DMA, placed around 11590, would be the important support to eye.

 

11929, the top made yesterday, would work as immediate hurdle upon crossover of which, 12025, the top made on 15^th October, would be the next resistance to eye.

 

Maruti and BPCL will report their quarterly earnings today.