17250 CONTINUES TO BE IMMEDIATE HURDLE; 16855 NEXT SUPPORT

 

17250 CONTINUES TO BE IMMEDIATE HURDLE; 16855 NEXT SUPPORT

 

WORLD MARKETS

 

Dow and Nasdaq fell 0.1% each while S & P 500 dipped 0.3% ahead of key inflation report due on Thursday. S&P 500 and Nasdaq fell for the sixth straight session with the former closing at its lowest since November 2020.

 

Minutes from the Federal Reserve’s September meeting showed that the central bank expects to keep hiking interest rates and keep them high until inflation shows signs of cooling off. However, several participants noted the importance of calibrating the pace of further tightening to mitigate the risk on the U.S. economy.

 

US wholesale prices rose at a higher-than-expected 0.4% in September. Y-o-Y rise stood at 8.5% after 8.7% advance in August.

 

US 10-year treasury yield fell 5 bps to 3.896%. Dollar index was flat at 113.26. Gold rose 0.4% to $1673 per ounce.

 

Oil dipped for a third consecutive day. Brent crude fell 2.1% to $92.27 a barrel and WTI crude lost 2.7% to $876.97.

 

European markets fell 0.3%-1.3%.

 

AT HOME

 

Benchmark indices rose eight tenth of a percent, snapping a 3-day losing streak. Sensex settled at 57625, up 478 points while Nifty added 140 points to finish at 17123. Nifty mid-cap and small-cap indices gained 0.6% and 0.8% respectively. Except a marginally lower Media index, all the NSE sectoral indices ended higher, with Realty index being the top gainer, up 1.6%, followed by 1.5% higher PSU Bank and FMCG indices.

 

FIIs net sold stocks worth Rs 542 cr but net bought index futures and stock futures worth Rs 1064 cr and 2467 cr respectively. DIIs were net buyers to the tune of Rs 85 cr.

 

Rupee ended unchanged at 82.31/$.

 

September CPI rose to a five-month high of 7.41%, up from 7% in previous month. IIP contracted first time in 18 months in August, dipping 0.8%.

 

HCL Tech's revenue met estimates while margins expanded. The company raised full year guidance. Wipro's revenue was largely in-line with estimate while net profit missed estimate. The company expects modest growth in Q3.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.4%-0.5% and SGX Nifty is suggesting nearly 50 points lower start for our market.

 

In yesterday's report we had said that 16855, the low made last week, was the next support while 17250 was the immediate hurdle on the hourly chart.

 

Nifty rose to touch a high of 17142 before closing at 17123.

 

16855, the low made last week, continues to be next support while 17250 continues to be immediate hurdle on the hourly chart, above which, 17428, the top made last week, would be bigger resistance to eye.

 

For Banknifty, 39608, the top made last week, continues to be immediate hurdle; 38450 continues to be immediate support on the hourly chart.