12770 CONTINUES TO BE IMMEDIATE HURDLE; 12475 IMMEDIATE SUPPORT

 

12770 CONTINUES TO BE IMMEDIATE HURDLE; 12475 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices fell 0.6%-1.1%, reacting to surging coronavirus cases in the US and its potential economic impact. Comments from Federal Reserve Chairman Jerome Powell that the country’s economic outlook remained uncertain, also weighed on the sentiment.

 

Average daily new cases in the US are up by at least 5% over the past week in at least 47 states while hospitalizations rose in at least 46 states

 

Brent crude fell 27 cents to settle at $43.53 a barrel, while WTI crude fell 33 cents to settle at $41.12 a barrel.

 

European markets eased 0.7%-1.5% on worsening Covid situation. France’s total number of cases rose to 1.86 million on Wednesday, overtaking Russia to become the worst-affected country in Europe. Italy surpassed the 1 million infections mark for the first time, while the U.K. became the first country in Europe to suffer over 50,000 deaths.

 

Meanwhile, preliminary figures showed U.K. GDP grew by a record 15.5% in the third quarter, slightly lower than expected.

 

AT HOME

 

Sensex and Nifty slipped half a percent, snapping eight-day winning streak. Sensex settled at 43357, down 236 points while Nifty lost 58 points to finish at 12690. BSE mid-cap and small-cap indices however rose 0.5% and 1.2% respectively. BSE Bankex tumbled 2%, becoming top loser among the sectoral indices, followed by 1% lower Finance index. FMCG and Capital Goods indices were the top gainers, up 1.4% and 1.3% respectively.

 

FIIs net bought stocks worth Rs 1514 cr but net sold index futures and stock futures worth Rs 1654 cr and 155 cr respectively. DIIs were net sellers to the tune of Rs 2239 cr.

 

Rupee depreciated 27 paise to end at 74.65/$.

 

Finance Minister Nirmala Sitharaman announced 12 measures in the next set of stimulus under Atmanirbhar Bharat 3.0 aimed at boosting employment, credit and manufacturing. The additional stimulus steps amount to about Rs 9 lakh crore, taking the total virus relief to almost Rs 30 lakh crore, or 15% of GDP.

 

India's retail inflation, which is measured through the Consumer Price Index (CPI), rose by 7.61% in October. The CPI for the month of September was revised to 7.27% from 7.34%. Core inflation inched up to 5.8% from 5.7% in September.

 

The factory output, which is measured in terms of Index of Industrial Production (IIP), expanded by 0.2% in September.

 

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 12770, the top made Wednesday, was the immediate hurdle and that immediate support on the hourly chart had moved up to 12475.

 

Nifty slipped to touch a low of 12624 before closing at 12690 and is set to open below 12650 today.

 

12770, the top made Wednesday, continues to be immediate hurdle, a crossover of which is required for a fresh upmove. If that happens, 12950-13000 would be the next target zone.

 

 12475 continues to be immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.