11618 IS THE DOWNSIDE SUPPORT; 11905 IS IMMEDIATE HURDLE

 

11618 IS THE DOWNSIDE SUPPORT; 11905 IS IMMEDIATE HURDLE

 

WORLD MARKETS

 

After falling more than a percent in the initial trade, Dow and S & P 500 recouped most of the losses to end just marginally lower. Nasdaq fell 0.5%. The initial dip was on the back of fading hope for a U.S. coronavirus stimulus deal and surge in coronavirus infections across Europe.

 

Weekly jobless claims stood at 898,000, higher than a Dow Jones estimate of 830,000. Manufacturing activity in New York fell more than anticipated.

 

Brent futures fell 25 cents, or 0.6%, to $43.06 per barrel, while WTI crude settled 8 cents, or 0.19%, lower at $40.96 per barrel.

 

Dollar index rose 0.4% to 93.78.

 

European markets slipped 1.7%-2.8%. The French government declared a public health state of emergency while U.K announced stricter coronavirus measures in London.

 

AT HOME

 

Benchmark indices nosedived nearly two and a half percent, suffering the worst fall in 3-weeks, snapping 10-day winning streak and wiping out gains made after 6th of this month. Sensex settled at 39728, down 1066 points while Nifty lost 290 points to finish at 11680. BSE mid-cap and small-cap indices fell 1.8% and 1.4% respectively. All the BSE sectoral indices ended in red with Telecom index and Bankex leading the losses, down 3.5% and 3.3% respectively.

 

FIIs net sold stocks and index futures worth Rs 604 cr and 107 cr respectively but net bought stock futures worth Rs 222 cr. DIIs were net sellers to the tune of Rs 808 cr.

 

Rupee depreciated 8 paise to end at 73.38/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with modest gains and SGX Nifty is suggesting around 60 points higher start for our market.

 

In yesterday's report we had reiterated the view that 12022, the top made Monday, continued to be immediate hurdle, while 11740 continued to be immediate support, with the stop-loss of which, long positions could be held on to.

 

Nifty, after touching a high of 12025 in the initial trade, reversed to break 11740 support and fell further to 11661 before closing at 11680. The benchmark is set to open near 11750 today.

 

11618, the 33% retracement level of the recent 10790-12025 upmove, which also coincides with the immediate previous top on the daily chart made on 16th September, is the next support to eye. If 11618 breaks, 11475, where 34-DMA is placed, would be the important support to eye.

 

11905 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.

 

HCL Tech will report its quarterly results today.