17885 CONTINUES TO BE IMMEDIATE SUPPORT

 

17885 CONTINUES TO BE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices fell 0.3%-0.6%, dragged down by big cut in Tesla and after digesting wholesale inflation data.

 

Tesla shares ended nearly 12% lower, extending Monday losses.

 

October producer price index rose 0.6%, which was in-line with expectation. Y-o-y rise stood at 8.6%, highest in almost 11 years. Core PPI increased 0.4%, slightly below the 0.5% estimate but an elevated pace from September’s 0.1% gain. Y-o-Y increase stood at 6.2%.

 

US 10-year treasury yield dropped 5.8 basis points to 1.439%. Dollar index dipped 0.1% to 92.94.

 

Brent crude climbed $1.35, or 1.6%, to $84.78 per barrel while U.S. oil advanced $2.22, or 2.7%, to $84.15 per barrel, gaining for a third consecutive session.

 

In Europe, FTSE fell 0.4% while DAX and CAC ended marginally in the red. Germany’s ZEW economic sentiment index for November came in at 31.7 against a forecast of 20.0.

 

AT HOME

 

It was a day of consolidation as Sensex and Nifty ended lower by 0.2% and 0.1% lower after a relatively quiet session, snapping 2-day winning streak. Sensex settled at 60433, down 112 points while Nifty lost 24 points to finish at 18044. Nifty mid-cap and small-cap indices however surged 1.2% and 0.5% respectively, extending the winning streak to third straight day. BSE Industrials and Capital Goods indices climbed 1.4% and 1.1% respectively, becoming top gainers among the sectoral indices while Metal and Finance indices were the top losers, down 0.9% and 0.5% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 2445 cr, 2622 cr and 849 cr respectively. DIIs were net buyers to the tune of Rs 1418 cr.

 

Rupee depreciated 2 paise to end at 74.03/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.2%-0.6% while SGX Nifty is suggesting around 90 points lower start for our market.

 

In yesterday's report we had said that 18342, the top made on 27th October, was the next upside target and had advised holding on to long positions with the stop-loss of 17885.

 

Nifty, after touching a high of 18112 in the initial trade, slipped to end at 18044. The benchmark is set to open below 18000 today.

 

17885 continues to be the immediate support on the hourly chart, upon breach of which 17613, the low made on 29th October, would be the next downside level to eye; 18342, the top made on 27th October, continue the next upside target.

 

Meanwhile, trading longs can be held on to with the stop-loss of 17885.

 

40160, the top made last week, continues to be immediate hurdle for Banknifty; 38900, 38400 are supports.