13700 ABOVE 13550; 13300 CONTINUES TO BE SUPPORT

 

13700 ABOVE 13550; 13300 CONTINUES TO BE SUPPORT

 

WORLD MARKETS

 

Dow and S & P 500 fell 0.2% and 0.1% respectively following weaker-than-expected jobless claims data at a time when talks over new fiscal stimulus are dragging on. Nasdaq rose 0.5%.

 

Reports suggested Senate Majority Leader Mitch McConnell’s staff informed congressional leadership offices that Senate Republicans likely would not support a $908 billion bipartisan proposal. Earlier, House Speaker Nancy Pelosi said that bipartisan negotiations were leading to “great progress.”

 

Weekly jobless claims jumped last week to 853,000, their highest since Sept. 19.

 

A key Food and Drug Administration advisory panel recommended the approval of Pfizer and BioNTech’s coronavirus vaccine for emergency use.

 

Meanwhile, post-Brexit trade talks between the U.K. and European Union remain at an impasse over several issues including fishing rights and competition rules.

 

Brent crude jumped $1.39, or 2.84%, to settle at $50.25 per barrel, rising for a third day. WTI crude settled $1.26, or 2.8%, higher at $46.78 per barrel.

 

In Europe, FTSE rose half a percent, CAC was flat while DAX fell 0.3%. The European Central Bank expanded its massive monetary stimulus program by another 500 billion euros, taking its total value to 1.85 trillion euros and extending the time horizon for asset purchases until March 2022.

 

AT HOME

 

Sensex and Nifty fell 0.3% and 0.4% respectively, with Nifty snapping seven-day winning streak. Sensex settled at 45959, down 144 points while Nifty lost 51 points to finish at 13478. Nifty mid-cap and small-cap indices fell 0.8% and 0.5% respectively. BSE FMCG index climbed 2.7%, becoming top gainer among the sectoral indices, followed by 0.5% higher Realty index. Basic Materials and Power indices were the top losers, down 1.4% and 1.1% respectively.

 

FIIs net bought stocks worth Rs 2260 cr but net sold index futures and stock futures worth Rs 1311 cr and 1179 cr respectively. DIIs were net sellers to the tune of Rs 2275 cr.

 

Rupee depreciated 10 paise to end at 73.66/$.

 

UPL shares plunged after a whistleblower alleged that the promoters have siphoned off money.

 

OUTLOOK

 

Today morning, Hang Seng is up 0.8%, Shanghai is little changed while Nikkei is off half a percent. SGX Nifty is suggesting around 30 points higher start for our market.

 

In yesterday's report we had said that 13549, the top made Wednesday, was the immediate hurdle to eye and had advised holding on to long positions with the revised stop-loss of 13300.

 

The benchmark, after touching a low of 13399, rebounded to end at 13478 and is set to open near 13500 today.

 

13549, the top made Wednesday, continues to be immediate hurdle, upon crossover of which, 13700 would be the next upside target.

 

13300 continues to be immediate support on the hourly chart, with the stop-loss of which, trading longs should be held on to.

 

India’s Index of Industrial Production for October will be released today.