20-DMA CONTINUES TO BE IMMEDIATE HURDLE; 17613 IMMEDIATE SUPPORT

 

20-DMA CONTINUES TO BE IMMEDIATE HURDLE; 17613 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices gained 0.2% to 0.6% on Friday to hit record highs following a better-than-expected October jobs report and progress on infrastructure bill. Dow, S&P 500 and Nasdaq rose for the sixth, seventh and tenth consecutive day respectively.

 

U.S. House of Representatives late Friday passed a more than $1 trillion infrastructure bill, sending the legislation to President Joe Biden for his signature. The package passed by the Senate in August would provide new funding for transportation, utilities and broadband, among other infrastructure projects.

 

U.S. economy added 531,000 jobs last month, up from the expected 450000.  and numbers for September and August were revised up.

 

US 10-year treasury yield fell 6 bps to 1.46%. Dollar index, after rising to 94.62, slipped to end 0.1% lower at 94.22. Spot gold rose 1.2% to $1,813.36 per ounce, it's highest in nearly two months.

 

Brent crude rose $2.20 to settle at $82.74 per barrel, while WTI gained $2.46 to $81.27 after OPEC+ producers rebuffed a U.S. call to accelerate output increases even as demand nears pre-pandemic levels.

 

European markets rose 0.2%-1%. Euro zone September retail sales slid 0.3% month-on-month as weakness in Germany weighed on the bloc. German industrial production fell by 1.1% month-on-month in September as output in Europe’s largest economy was hit by supply bottlenecks for materials. French industrial production also contracted by 1.3%.

 

Official data released over the weekend showed China’s exports surged 27.1% in October, up from 24.5% growth forecast.

 

AT HOME

 

Benchmark indices rose half a percent on Muhurat trading session, snapping 2-session losing streak. Sensex settled at 60067, up 295 points while Nifty added 87 points to finish at 17916. Nifty mid-cap and small-cap indices climbed 0.8% and 1.3% respectively. All the BSE sectoral indices ended higher, with Auto and Consumer Discretionary Goods & Services indices leading the tally, up 1.5% and 1.1% respectively.

 

FIIs net sold stocks and stock futures worth Rs 328 cr and 200 cr respectively but net bought index futures worth Rs 4 cr. DIIs were net buyers to the tune of Rs 38 cr.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are modestly lower while Shanghai is up 0.2%. SGX Nifty is suggesting around 80 points higher start.

 

In Wednesday's report we had said that 20-DMA, placed around 18050, continued to be immediate hurdle. Nifty, on Wednesday, after touching a high of 17988, slipped to end at 17829 but rose to close at 17916 on Thursday. The benchmark is set to opne near 18000 today.

 

20-DMA, placed around 18065, continues to be immediate hurdle, a crossover of which is required for a fresh upmove. If that happens, 18342, the top made on 27th October, would be the next upside target.

 

17613, the low made on 29th October, continues to be immediate support.

 

40200 is immediate hurdle for Banknifty; 38426 is immediate support.

 

Britannia and Aurobindo Pharma will report their quarterly earnings today.