17800-17750 IS NEXT SUPPORT ZONE; 18023 IMMEDIATE HURDLE

 

17800-17750 IS NEXT SUPPORT ZONE; 18023 IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow slipped 0.6% while S & P 500 and Nasdaq eased 0.3% each.

 

Housing Starts in October fell 0.7% to 1.52 million units, short of expectations. Permits rose 4% to 1.65 million, topping estimates. November Housing Market index rose more than expected to its highest point since last May.

 

US 10-year treasury yield fell 4 basis points to 1.591%. Dollar index drifted 0.034% lower to 95.91 after earlier touching 96.266, its highest in 16 months. Spot gold rose 0.9% to $1,866.83 per ounce.

 

Brent crude futures fell 2.6% to $80.28 a barrel while WTI crude futures settled 3% lower at $78.36 amid growing concerns about oversupply and a recovery in demand.

 

In Europe, FTSE fell half a percent while DAX and CAC ended marginally in the green. The U.K.’s October CPI rose by 4.2%, up from 3.1% in September and hitting a 10-year high. Euro zone inflation was confirmed at 4.1% y-o-y in October, more than double the European Central Bank’s target.

 

AT HOME

 

Sensex and Nifty tumbled 0.5% and 0.6% respectively, extending the losing streak to second straight day. Sensex settled at 60008, down 314 points while Nifty lost 100 points to finish at 17898.  Nifty mid-cap index fell 0.7% while small-cap index inched up 0.1%. BSE Realty and Energy indices tumbled 1.8% each, becoming top losers among the sectoral indices while Power and Auto indices were top gainers, up 0.6% each.

 

FIIs net sold stocks and stock futures worth Rs 344 cr and 121 cr respectively but net bought index futures worth Rs 112 cr. DIIs were net sellers to the tune of Rs 61 cr.

 

Rupee appreciated 10 paise to end at 74.27/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.4%-1.3% and SGX Nifty is suggesting around 25 points lower start for our market.

 

In yesterday's report we had said that 17900 continued to be immediate support on the hourly chart, below which, 17798, the bottom made last week, would be the net downside level to eye.

 

Nifty plunged to 17879 before closing at 17887.

 

17800-17750 is the next support zone to eye; 18023, the top made yesterday, is immediate hurdle

 

37600, 36900 are supports for Banknifty; 38500 is immediate hurdle.