17025 CONTINUES TO BE IMMEDIATE SUPPORT; 17428 IMMEDIATE HURDLE

 

17025 CONTINUES TO BE IMMEDIATE SUPPORT; 17428 IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices tumbled 2.1%-3.8% on Friday as September’s jobs report showed the unemployment rate continuing to decline and sparked an increase in interest rates.

 

The U.S. economy added 263,000 jobs in September, slightly below estimate of 275,000. However, the unemployment rate came in at 3.5%, down from the 3.7% in the previous month in a sign that the jobs picture continues to strengthen.

 

Advanced Micro Devices’ stock tumbled after the chipmaker warned its third-quarter revenue would be lower than anticipated.

 

US 10-year treasury yield rose 6 bps to 3.883%. Dollar index rose 0.4% to 112.75. Gold dipped 1% to $1694 per ounce.

 

Oil hit a five-week high. Brent crude climbed $3.48, or 3.7%, to $97.90 and WTI crude surged $4.18, or 4.7%, to $92.63.

 

In Europe, FTSE eased 0.1% while DAX and CAC dipped 1.6% and 1.2% respectively.

 

For the week, US indices gained 0.7%-2%. For the week, Brent was up about 10% and WTI up about 15% for their biggest weekly percentage gains since March.

 

AT HOME

 

After falling two third of a percent in the morning, benchmark indices recouped most of the losses in noon session to end just marginally in the red. Sensex settled at 58191, down 30 points while Nifty lost 17 points to finish at 17314. Nifty mid-cap index fell 0.2% but small-cap index gained 0.2%. NSE Oil & Gas and IT indices dipped 0.7% each, becoming top losers among the sectoral indices while Consumer Durables index climbed 1.3%, becoming top gainer, followed by 0.4% higher Media index.

 

FIIs net sold stocks, index futures and stock futures worth Rs 2251 cr, 47 cr and 977 cr respectively. DIIs were net buyers to the tune of Rs 545 cr.

 

Rupee depreciated 44 paise to end at 82.32/$.

 

For the week, Sensex and Nifty gained 1.3% each, snapping a 3-week losing streak.

 

OUTLOOK

 

Markets in Japan, South Korea, Taiwan and Malaysia are closed for holidays today. Hang Seng is trading with cuts of more than 2% while Shanghai, after a week long holiday, has opened flat. SGX Nifty is suggesting nearly 270 points lower start for our market.

 

In Friday's report we had said that upon crossover of Thursday's high, i.e. 17428, next upside level to eye would be 17581, which is the 61.8% retracement levels of the recent 18096-16747 fall. We had also said that 17025 was the immediate support, with the stop-loss of which, trading longs can be held on to.

 

Nifty touched a low of 17216 before closing at 17315 and is set to open near 17100 today.

 

17025 continues to be immediate support, upon breach of which, 16855, the low made last week, would be next downside level to eye; 17428, the top made last week, continues to be immediate hurdle.

 

For Banknifty, 38450 is the immediate support on the hourly chart, below which, 37963, the low made during the week, would be next downside level to eye; 39608, the top made during the week, roughly coincided with 34-DMA and is the immediate hurdle to eye. 

 

TCS will report its quarterly earnings today.