18342 IS THE UPSIDE TARGET; 17900 IMMEDIATE SUPPORT

 

18342 IS THE UPSIDE TARGET; 17900 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices gained 0.5%-1% on Friday, but snapped a 5-week winning streak.

 

Data from University of Michigan showed consumer sentiment in early November dropped to its lowest level in a decade as surging inflation cut into households’ living standard. Data from the Labor Department showed workers left their jobs in record numbers in September with 4.43 million people quitting.

 

The yield on 10-year U.S. Treasury notes rose 2.0 basis points to 1.5784%. Dollar index, after falling to 94.991, rebounded to end marginally lower at 95.116. Spot gold rose 0.3% to $1,866.87 per ounce, extending the winning streak to seventh consecutive day.

 

Brent crude futures fell 70 cents, or 0.8%, to settle at $82.17 a barrel while WTI crude fell 80 cents, or 1%, to settle at $80.79 a barrel.

 

In Europe, FTSE fell half a percent while DAX and CAC gained 0.1% and 0.4% respectively.

 

For the week, US indices fell 0.3%-0.7%, snapping a 5-week winning streak. Dollar index rose nearly a percent, posting its biggest weekly gain since late August. Gold had best week in six months with a gain of 2.6%. Brent and WTI fell 0.7% and 0.6% respectively for their third consecutive negative week.

 

AT HOME

 

Benchmark indices soared 1.3% each, snapping 3-day losing streak. Sensex settled at 60686, up 767 points while Nifty added 229 points to finish at 18102. Nifty mid-cap and small-cap indices gained 0.4% and 0.3% respectively. All the BSE sectoral indices ended in green, with IT and Teck indices leading the tally, up 2% each.

 

FIIs net bought stocks, index futures and stock futures worth Rs 511 cr, 2103 cr and 881 cr respectively. DIIs were net buyers to the tune of Rs 851 cr.

 

Rupee appreciated 7 paise to end at 74.43/$.

 

For the week, benchmark indices gained 1% each, extending the winning streak to second straight week.

 

Retail inflation rose to 4.5% in October, up from 4.35% in previous month. Core CPI rose to 6% from 5.79%. IIP growth slowed to a seven-month low of 3.1% in September, down from 12% growth registered in the previous month.

 

OUTLOOK

 

Today morning, Nikkei is up half a percent, Hang Seng is flat while Shanghai is marginally in the red. SGX Nifty is suggesting around 70 points higher start for our market.

 

In Friday's report we had said that 18061 followed by 18112 were the upside hurdles for Nifty while 17757 was the next support.

 

Nifty soared to touch a high of 18123 before closing at 18102 and is set to open above 18150 today.

 

18342, the top made on 27th October, is the next upside targets to eye; 17900 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.