16950 IS THE IMMEDIATE SUPPORT; 16428 IMPORTANT HURDLE

 

16950 IS THE IMMEDIATE SUPPORT; 16428 IMPORTANT HURDLE

 

WORLD MARKETS

 

After a positive start, US indices saw a sustained downward move through the session to end with cuts of 1.3%-3.1%.

 

Indices fell to session lows after a consumer survey from the University of Michigan showed inflation expectations were increasing. Retail sales for September were flat.

 

US 10-year treasury yield rose 6 bps to 4.002%. The U.S. dollar index rose around 0.8% to 113.30. Sterling fell sharply against the U.S. dollar after British Prime Minister Truss fired finance minister and scrapped parts of economic package that has caused havoc in UK financial markets. Gold tumbled 1.3% to $1644 per ounce.

 

Brent crude futures dropped 3.1%, to $91.63 a barrel while WTI crude futures fell 3.9% to $85.61.

 

European markets gained 0.1%-0.9%.

 

For the week, Dow rose 1.2% but S & P 500 and Nasdaq fell 1.6% and 3.1% respectively. In Europe, FTSE fell 1.9% but DAX and CAC gained 1.3% and 1.1% respectively. In Asia Shanghai rose 1.6% but Hang Seng nosedived 6.5% and Nifty and Nikkei fell 0.8% and 0.1% respectively.

 

US 10-year treasury yield rose 3.4% to 4.023%. Dollar index rose half a percent to 113.30. Gold tumbled 3% to $1650 per ounce. Brent and WTI crude plunged 6.8% and 8.2% respectively as global recession fears and weak oil demand, especially in China, outweighed support from a large cut to the OPEC+ supply target.

 

AT HOME

 

After climbing 2% in morning, Sensex and Nifty gave away nearly half of the gains in noon trade to end higher by 1.2% and 1% respectively. Sensex settled at 57919, up 684 points while Nifty added 171 points to finish at 17185. Nifty mid-cap and small-cap indices ended marginally in the red. Nifty Financial Services and Bank indices were the top gainers among the sectoral indices, rising 1.8% each while Realty and Media indices were the top losers, down 0.8% each.

 

FIIs net sold stocks worth Rs 1011 cr but net bought index futures and stock futures worth Rs 2022 cr and 2216 cr respectively. DIIs were net buyers to the tune of Rs 1624 cr.

 

Rupee ended flat at 82.35/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.6%-1.4% and SGX Nifty is suggesting nearly 100 points lower start for our market.

 

In Friday's report we had said that 17250-17280 was the immediate resistance area on the hourly chart, upon crossover of which, 17428, the top made previous week, would be next upside level to eye while 16950 was the immediate support.

 

Nifty, after touching a high of 17348, slipped to end at 17185. The benchmark is set to open near 17100 today.

 

16950, where Nifty had repeatedly taken support last week, is the immediate support, upon breach of which, 16850-16750 would be next support area; 17428, the top made on 6th October, is the important hurdle.

 

For Banknifty, 39608, the top made on 6th October, roughly coincided with 34-DMA and continues to be important immediate hurdle, a crossover of which is required for a fresh upmove. Upon crossover of this hurdle, 40038 and 40760, the 61.8% and 78.6% retracement levels of the recent 41677-37386 fall, would be next upside levels to eye; On the way down, 38438, the low made last week, is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.