17900 CONTINUES TO BE IMMEDIATE SUPPORT; 18210 IMMEDIATE HURDLE

 

17900 CONTINUES TO BE IMMEDIATE SUPPORT; 18210 IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices gained 0.2%-0.8% after a strong October retail sales report and better-than-expected third-quarter results from Home Depot and Walmart.

 

Retail sales rose 1.7% in October, compared to 0.7% up in September and better than the expected 1.5% read. Homebuilder confidence rose 3 points to 83, again beating estimate.

 

Home Depot led gainers on the Dow after its earnings topped estimates. Walmart also reported better-than-expected results, though its shares declined.

 

US 10-year treasury yield rose 1.8 basis points to 1.639%. Dollar index climbed 0.4% to 95.92, its highest in 16 months. Gold future,  after hitting a high of $1879, reversed to settle down $12.50, or 0.7%, at $1,854.10 an ounce.

 

The virtual meeting between Biden and Xi kicked off on a positive note with cordial remarks. Following the meeting, public statements emphasized ways for the two countries to avoid conflict, though points of tension were noted.

 

Brent crude rose 38 cents, or 0.5%, to $82.43 a barrel, while WTI crude fell 12 cents, or 0.2%, to $80.76 a barrel.

 

In Europe, FTSE fell 0.3% while DAX and CAC gained 0.6% and 0.3% respectively. Euro zone third-quarter GDP grew 2.2%, in line with expectations

 

AT HOME

 

Benchmark indices ended lower by six tenth of a percent, snapping 2-day winning streak. Sensex settled at 60322, down 396 points while Nifty lost 110 points to finish at 17999. Nifty mid-cap index fell 0.3% while Small-cap index gained 0.5%. BSE Energy and Oil & Gas indices slipped 2.1% and 1.2% respectively, becoming top losers among the sectoral indices while Auto index climbed 2.6%, becoming the top gainer, followed by 1% higher Consumer Discretionary Goods & Services index.

 

FIIs net sold stocks and index futures worth Rs 561 cr and 578 cr respectively but net bought stock futures worth Rs 31 cr. DIIs were net buyers to the tune of Rs 577 cr.

 

Rupee appreciated 11 paise to end at 74.37/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of upto half a percen and SGX Nifty is suggesting around 50 points lower start for our market.

 

In yesterday's report we had reiterated the view that 18342 continued to be next upside targets and that 17900 continued to be immediate support on the hourly chart, with the stop-loss of which, trading longs could be held on to.

 

Nifty plunged to 17958 before closing at 17999 and is set to open enar 17950 today.

 

17900 continues to be immediate support on the hourly chart, below which, 17798, the bottom made last week, would be the net downside level to eye.

 

18210, the top made Monday, is the immediate hurdle.

 

37600 is the next support for Banknity; 38700 is immediate hurdle.