17885 CONTINUES TO BE IMMEDIATE SUPPORT

 

17885 CONTINUES TO BE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices fell 0.7%-1.7% with Nasdaq leading the losses after a hot inflation report pushed up bond yields.

 

CPI rose 6.2% y-o-y in October, hitting its highest level in three decades. On a monthly basis, it increased 0.9% against the 0.6% estimate.

 

US 10-year treasury yield jumped 11.6 bps to 1.565%. Dollar index climbed 0.9% to 94.86, snapping 3-day losing streak. Gold soared to $1868 before closing 0.9% higher at $1848 per ounce.

 

Brent crude fell 69 cents to $84.09 a barrel while WTI slipped $1.24 to $82.91.

 

In Europe, FTSE and DAX gained 0.9% and 0.2% respectively while CAC was little changed. German October CPI inflation came in at 4.5% y-o-y and 0.5% month-on-month.

 

China's October CPI rose 1.5% from last year, double the rate of the previous month and the fastest pace of increase since September 2020. Producer price index jumped 13.5% y-o-y, accelerating from September's 10.7%.

 

AT HOME

 

After falling about seven tenth of a percent in the initial trade, benchmark indices recouped most of the losses through the session to end lower by 0.1%, extending the losing streak to second consecutive day. Sensex settled at 60352, down 80 points while Nifty lost 27 points to finish at 18017. Nifty mid-cap and small-cap indices fell 0.4% and 0.1% respectively, snapping 3-day winning streak. BSE Metal and Realty indices fell 2.1% and 1.6% respectively, becoming top losers among the sectoral indices while Telecom index climbed 2.2%, becoming top gainer, followed by 0.9% higher Energy index.

 

FIIs net sold stocks, index futures and stock futures worth Rs 470 cr, 512 cr and 1221 cr respectively. DIIs were net buyers to the tune of Rs 767 cr.

 

Rupee depreciated 35 paise to end at 74.38/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.4%-0.8% and SGX Nifty is suggesting around 30 points lower start for our market.

 

In yesterday's report we had said that 17885 continued to be the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

Nifty, after touching a low of 17915, rebounded to end at 18017.

 

17885 continues to be the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

18200, around which a rising trendline adjoining recent tops on the hourly chart is placed, is the immediate upside target, above which, 18342, the top made on 27th October, would be the next upside target.

 

40160, the top made last week, continues to be immediate hurdle for Banknifty; 38426 is immediate support.

 

Tata Steel will report its quarterly earnings today.