NIFTY RETREATS FROM 18314-18384 RESISTANCE ZONE

 

NIFTY RETREATS FROM 18314-18384 RESISTANCE ZONE

 

WORLD MARKETS

 

Dow and S & P 500 fell 0.7% and 0.5% respectively to snap 3-day and 2-day rising streak respectively while Nasdaq ended flat.

 

New orders for durable goods fell less than expected in September and the rise for August was revised down to 1.3% growth from 1.8%.

 

US 10-year treasury yield dropped 8 basis points to 1.534% while the 2-year note yield rose 3 bps to 0.5108%, flattening the yield curve in the run-up to the Fed's policy meeting next week. The dollar index fell 0.1%. Spot gold was up 0.1% at $1,784.66 an ounce

 

Brent oil futures fell 1.42%, or $1.28 to $85.12 a barrel while WTI futures settled 2.4%, or $1.99, lower at $82.66 a barrel after Crude oil inventories rose 2.3 million barrels in the week ending Oct. 22, more than the expectations for a 1.9 million barrel gain.

 

Industrial profits in China surged 16.3% y-o-y in September.

 

European markets fell 0.2%-0.6%.

 

AT HOME

 

After rising four tenth of a percent in the morning, benchmark indices reversed in noon trade to end lower by a third of a percent, snapping 2-day winning streak. Sensex settled at 61143, down 207 points while Nifty lost 57 points to finish at 18211. Nifty mid-cap and small-cap indices however managed to end higher by 0.1% and 0.3% respectively. BSE Metal index and Bankex slipped 1.8% and 1.1% respectively, becoming top losers among the sectoral indices while IT and Teck indices were the top gainers, up 1% and 0.8% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 1913 cr, 2552 cr and 1612 cr respectively. DIIs were net buyers to the tune of Rs 472 cr.

 

Rupee depreciated 7 paise to end at 75.03/$.

 

OUTLOOK

 

Today morning, Hang Seng is up 0.2% while Nikkei and Shanghai are down 0.9% and 0.6% respectively. SGX Nifty is suggesting around 15 points higher start for our market.

 

In yesterday's report we had said that 18314-18384 continues to be immediate resistance zone.

 

Nifty, after touching a high of 18342, slipped to end at 18210.

 

18384 continues to be immediate hurdle, a crossover of which is required for a fresh upmove; 17968, the bottom made Monday, continues to be immediate support.

 

41830, the top made Monday, is the immediate hurdle for Banknifty; 40000 is immediate support.

 

Tata Power and Bajaj Finserve will report their quarterly earnings today.