18096 ABOVE 17811; 17520 CONTINUES TO BE IMMEDIATE SUPPORT

 

18096 ABOVE 17811; 17520 CONTINUES TO BE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Dow rose 0.6% for its fifth straight day of wins but S & P 500 and Nasdaq fell 0.6% and 1.6% respectively due to a rout in Meta and other tech stocks.

 

U.S. GDP grew 2.6% in the third quarter, better than the expected 2.3%. The chain-weighted price index, a cost-of-living measure that is adjusted to reflect changing consumer behavior, rose 4.1% for the quarter, well below the 5.3% estimate. Also, headline inflation rose 4.2%, down sharply from 7.3%. Initial jobless claims came in at 217,000, which was 3,000 below expectations.

 

Amazon shares fell in extended trading after the company posted weaker-than-expected quarterly revenue and issued disappointing fourth-quarter sales guidance.

 

US 10-year treasury yield fell 8 bps to 3.923%. Dollar index rose 0.8% to 110.57 Spot gold eased 0.1% to $1662 per ounce.

 

Brent crude settled up $1.27, or 1.3%, to $96.96 a barrel while WTI crude settled up $1.17, or 1.3%, to $89.08 a barrel.

 

The European Central Bank announced a 75 bps interest rate hike — its third consecutive increase this year — while also revealing new conditions for European banks.

 

In Europe, FTSE and DAX inched up 0.25% and 0.1% respectively while CAC fell half a percent.

 

AT HOME

 

After rising seven tenth of a percent in the initial trade, Sensex and Nifty gave away all the gains through the session but bounced back again in last 15 minutes to end higher by 0.4% and 0.5% respectively. Sensex settled at 59756, up 212 points while Nifty added 80 points to finish at 17736. Nifty mid-cap and small-cap indices gained 0.6% and 0.4% respectively. Except 0.5% lower IT index, all the NSE sectoral indices ended higher, with Realty and Metal indices on the top, up 3% and 2.7% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 2818 cr, 4104 cr and 2557 cr respectively. DIIs were net sellers to the tune of Rs 1580 cr.

 

Rupee appreciated 23 paise to end at 82.49/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.3%-0.5% and SGX Nifty is suggesting around 50 points higher start for our market.

 

In yesterday's report we had said that upon crossover of 17811, 18096, the top made in September, would be the next upside level to eye while 17520 was the immediate support on hourly chart, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a high of 17784 in the initial trade, fell to 17654 and then rebounded to end at 17737.

 

17811, the top made on Tuesday, which coincided with the 78.6% retracement level of the 18096-16747 fall, continues to be immediate hurdle, upon crossover of which, 18096, the top made in September, would be the next upside target; 17520 continues to be immediate support, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 41840, the top made in September, is the next upside level to eye; 40400 is the immediate support.

 

Maruti, Dr Reddy, Vedanta and Tata Power will report their quarterly earnings today.