17581 ABOVE 17428; 17098 IS THE IMMEDIATE SUPPORT

 

17581 ABOVE 17428; 17098 IS THE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices surged 1.9%-3.4% on the back of strong earnings from Banks.

 

Bank of America surged 6% after reporting better-than-expected results. Bank of New York Mellon too jumped 5% on earnings beat.

 

US 10-year treasury yield was nearly flat at 4.015%. Dollar index plunged 1.1% to 112.06. Sterling jumped 1.6% and the yield on the U.K. 10-year gilt fell around 36 bps to 3.967% after new UK finance minister Jeremy Hunt announced that almost all planned tax cuts would be scrapped. Gold rose 0.4% to $1650 per ounce.

 

European markets rose 0.9%-2.4%.

 

AT HOME

 

After starting half a percent lower, Sensex and Nifty saw a sustained northward move through the session to end with gains of 0.7% and 0.8% respectively. Sensex settled at 58410, up 491 points while Nifty added 126 points to finish at 17311. Nifty mid-cap and small-cap indices gained 0.2% and 0.4% respectively. Nifty Bank and Financial Services indices were the top gainers, up 1.6% and 1.2% respectively while Metal and Media indices were the top losers, down 1% and 0.8% respectively.

 

FIIs net sold stocks worth Rs 372 cr but net bought index futures and stock futures worth Rs 416 cr and 2290 cr respectively. DIIs were net buyers to the tune of Rs 1582 cr.

 

Rupee was unchanged at 82.35/$.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are up 0.7% each while Shanghai is up 0.1%. SGX Nifty is suggesting around 140 points higher start for our market.

 

In yesterday's report we had said that 16950, where Nifty had repeatedly taken support last week, was the immediate support while 17428, the top made on 6th October, was the important hurdle.

 

Nifty, after touching a low of 17098, rebounded to end at 17311 and is set to open above 17400 today.

 

17428, the top made on 6th October, continues to be important immediate hurdle, upon crossover of which, 17581 and 17807, the 61.8% and 78.6% retracement levels of recent 18096-16747 fall, would be next upside levels to eye; 17098, the low made yesterday, is the immediate support.

 

For Banknifty, 40760, the 78.6% retracement levels of the recent 41677-37386 fall, is the next upside levels to eye; 39150 is the immediate support.