11905 CONTINUES BE IMMEDIATE HURDLE; 11618 IMMEDIATE SUPPORT

 

11905 CONTINUES BE IMMEDIATE HURDLE; 11618 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Dow rose 0.4%, S & P 500 ended flat while Nasdaq fell 0.4% on Friday.

 

U.S. retail sales jumped 1.9% in September, topping estimate of 0.7% rise. Excluding autos, sales were up 1.5%, again better than a 0.4% estimate.

 

Treasury Secretary Steven Mnuchin said Thursday that the White House won’t let differences over funding targets for Covid-19 testing derail stimulus talks with top Democrats. Later, President Trump said that he would raise his offer for a stimulus package above his current level of $1.8 trillion. House Democrats have passed a $2.2 trillion bill.

 

Brent crude futures fell 23 cents to $42.93 a barrel, and WTI crude futures dropped 8 cents to settle at $40.88 a barrel.

 

European markets gained 1.5%-2%. U.K. Prime Minister Boris Johnson said he would seek a no-deal Brexit unless there was a fundamental change of approach from the European Union.

 

For the week, US indices managed to end higher by 0.1%-0.8% but European markets fell 0.2%-1.6%. In Asia, Nikkei and Nifty fell 0.9% and 1.3% respectively while Shanghai and Hang Seng rose 1.1% and 2%.

 

AT HOME

 

Sensex and Nifty rose 0.6% and 0.7% respectively, recouping nearly a fourth of Thursday's mammoth losses. Sensex settled at 39982, up 254 points while Nifty added 82 points to finish at 11762. BSE mid-cap and small-cap indices rose 1% each. Except 0.8% lower Energy index, all the BSE sectoral indices ended higher, with Metal and Realty indices leading the tally, up 3.7% and 2.6% respectively.

 

FIIs net sold stocks and index futures worth Rs 480 cr and 42 cr respectively but net bought stock futrues worth Rs 139 cr. DIIs were net sellers to the tune of Rs 430 cr.

 

Rupee appreciated 4 paise to end at 73.34/$.

 

For the week, Sensex and Nifty fell 1.3% each, snapping two-week winning streak.

 

HDFC Bank reported mixed set of quarterly results. NII rose 16.7% to Rs 15776 cr while Net Profit was up 18.4% at Rs 7513 cr. Gross NPA ratio improved 28 bps q-o-q to 1.08% while net NPA ratio fell 16 bps to 0.17%. Net Interest Margin however dipped to 4.1%, hitting 16 quarter low.

 

OUTLOOK

 

China's Q3 GDP growth has come in at 4.9% y-o-y, which is lower than the expected growth of 5.2%. September Retail sales 3.3%, beating estimate of 1.8% rise. September industrial production rose 6.9%.

 

Today morning, Asian markets are trading with gains of 0.6%-1.6% and SGX Nifty is suggesting around 70 points higher start for our market.

 

In Friday's report we had said that 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. We had also said that 11905 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.

 

Nifty, after touching a low of 11667 in the morning, recovered to end at 11762 and is set to open near 11850 today.

 

11905 continues to be immediate hurdle on the hourly chart, a crossover of which is required for a further upmove. If that happens, 12025, the top made last week, would be the next target/resistance to eye.

 

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, continues to be support to eye.

 

Britannia and ACC will report their quarterly earnings today.