NIFTY HOLDS 11535 SUPPORT; 11770 IS IMMEDIATE HURDLE

 

NIFTY HOLDS 11535 SUPPORT; 11770 IS IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices gained 0.4%-1.6%, rebounding from the steep October sell-off, ahead of Tuesday's Presidential election between incumbent Donald Trump and former Vice President Joe Biden.

 

According to the U.S. Elections Project, more than 94 million votes have already been cast, already exceeding or nearing total levels in 2016.

 

Various polls are putting Biden ahead of Trump.  According to a NBC News/Wall Street Journal poll from Sunday, Biden earned 52% of support from registered voters compared to 42% for Trump.

 

October ISM Manufacturing PMI rose to 59.3 in October, its highest level in more than two years.

 

Earlier data showed China's October Caixin/Markit PMI came in at 53.6, its highest in nearly a decade in October.

 

After falling more than $2 initially, oil rebounded to end higher. Brent crude rose $1.14, or 3%, to $39.08 per barrel while WTI settled $1.02, or 2.8%, higher at $36.81 per barrel.

 

European markets climbed 1.4%-2.6%. October’s final manufacturing PMI for the euro zone came in at 54.8, up from 53.7 in September and outstripping expectations.

 

AT HOME

 

After falling about three fourth of a percent in the initial trade, benchmark indices climbed nearly a percent from the bottom of the day to end higher by around three tenth of a percent, snapping three-day losing streak. Sensex settled at 39757, up 143 points while Nifty added 26 points to finish at 11669. BSE mid-cap index rose 0.4% but the small-cap index fell 0.7%. BSE Bankex and Telecom indices soared 4.2% and 3.8% respectively, becoming top gainers among the sectoral indices while Energy index nosedived 7.1%, followed by 2.5% lower Oil & Gas index.

 

FIIs net bought stocks, index futures and stock futures worth Rs 741 cr, 1227 cr and 734 cr respectively. DIIs were net sellers to the tune of Rs 544 cr.

 

Rupee depreciated 33 paise to end at 74.73/$.

 

India's IHS Markit Manufacturing PMI rose from 56.8 in September to 58.9 in October, which is the best reading in since mid 2008.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.7%-1.6% and SGX Nifty is suggesting around 80 points higher start for our market.

 

In yesterday's report we had said that 11535, the weekly low made on Friday, also coincided with the 50-Day Moving Average, 38.2% retracement level of the entire 10790-12025 upmove as well as the lower band of bollinger on the daily chart and hence was the important support to eye. We had also said that 11770 was the immediate hurdle on the hourly chart.

 

Nifty, after touching a low of 11557 in the initial trade, rebounded to touch a high of 11725 before closing at 11669. The benchmark is set to open near 11750 today.

 

11770 continues to be immediate hurdle on the hourly chart, upon crossover of which, 11942, the top made last week, would be the next resistance.

 

11535 continues to be important immediate support.