11864, 11942 ARE UPSIDE LEVELS TO EYE; 11700 IS IMMEDIATE SUPPORT

 

11864, 11942 ARE UPSIDE LEVELS TO EYE; 11700 IS IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices rose 1.8%-2.1%, hoping for a clear winner to emerge from the Presidential election.

 

In the polls leading up to election, Joe Biden was ahead of Trump. Market is also watching some key Senate races, which could lead to Democrats taking control of Congress. Markets are betting that a so-called blue wave — a scenario in which Democrats win the White House, obtain a Senate majority and keep control of the House — could facilitate the passing of new fiscal stimulus.

 

Brent futures rose 84 cents, or 2.2%, to $39.81 a barrel, while WTI crude settled 85 cents, or 2.3%, higher at $37.66 per barrel.

 

European markets climbed 2.3%-3.2%.

 

AT HOME

 

Benchmark indices climbed a percent and fourth, registering biggest gain in nearly a month and extending the winning streak to second straight day. Sensex settled at 40261, up 503 points while Nifty added 144 points to finish at 11813. BSE mid-cap and small-cap indices rose 0.4% each. BSE Bankex and Finance indices soared 3.2% and 2.9% respectively, becoming top gainers among the sectoral indices while Realty and FMCG indices were the top losers, down 2.2% and 1.1% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 2274 cr, 480 cr and 745 cr respectively. DIIs were net sellers to the tune of Rs 1101 cr.

 

Rupee appreciated 2 paise to end at 74.40/$.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are up 1.5% and 0.4% respectively while Shanghai is little changed. SGX Nifty is suggesting around 25 points lower start for our market.

 

In yesterday's report we had reiterated the view that 11770 continued to be immediate hurdle on the hourly chart, upon crossover of which, 11942, the top made last week, would be the next resistance.

 

Nifty crossed 11770 hurdle in the initial trade and surged all the way to 11836 before closing at 11813.

 

11864, the two-third retracement level of the recent 12025-11535 fall, is the immediate hurdle to eye, upon crossover of which, 11942, the top made last week, would be the next target.

 

11700 is the immediate support on the hourly chart, upon breach of which, 11535, the bottom made last week, would be the crucial support.