18096 IS THE NEXT TARGET; 17520 IMMEDIATE SUPPORT

 

18096 IS THE NEXT TARGET; 17520 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices surged 1.1% -2.2% on Tuesday for their third consecutive up day as soft economic data indicated the Fed may not need to be so aggressive with rate hikes. Data on Tuesday showed that U.S. consumer confidence ebbed in October, home prices fell sharply in August and there were signs that the Fed’s aggressive stance was starting to cool the labour market.

 

Yesterday, Dow ended flat while S & P 500 and Nasdaq fell 0.7% and 2% respectively after Alphabet and Microsoft earnings disappointed.

 

Data yesterday showed that sales of new U.S. single-family homes dropped in September and data for the prior month was revised lower.

 

Shares of Meta platforms, the Facebook parent company, plummeted 18% in extended trading on a weak fourth-quarter forecast.

 

US 10-year treasury yield fell 7 bps to 4.007%, after falling 14 bps on Tuesday. Dollar index fell 1.1% to 109.69Spot gold rose 0.8% to $1,665 per ounce.

 

Brent crude futures settled up $2.17, or 2.3%, to $95.69 a barrel and WTI crude rose $2.59, or 3%, to $87.91.

 

European markets gained 0.4%-1.1%.

 

AT HOME

 

After opening higher by around half a percent, benchmark indices reversed these gains through the session to end lower by nearly half a percent, snapping a 7-day winning streak. Sensex settled at 59543, down 287 points while Nifty lost 74 points to finish at 17656. Nifty mid-cap index rose 0.4% but small-cap index fell 0.1%. Nifty PSU Bank index soared 3.5%, becoming top gainer among the sectoral indices, followed by 1.2% higher Auto index. FMCG index was the top loser, down 1%, followed by 0.8% lower Private Bank and Financial Services indices.

 

FIIs net sold stocks worth Rs 247 cr but net bought index futures and stock futures worth Rs 53 cr and 2991 cr respectively. DIIs were net buyers to the tune of Rs 873 cr.

 

Rupee depreciated 5 paise to end at 82.7250/$.

 

OUTLOOK

 

Today morning, Hang Seng and Shanghai are up 2.9% and 0.4% respectively while Nikkei is marginally in the red. SGX Nifty is trading around 17900, suggesting nearly 250 points gap-up start when compared to Tuesday's close of Nifty future.

 

In Friday's report we had said that 17807, the 78.6% retracement level of the recent 18096-16747 fall, continued to be next upside level to eye while immediate support on the hourly chart had moved up to 17500, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a high of 17811, slipped to end at 17640. The benchmark is set to open near 17850 today.

 

18096, the top made in September, is the next upside level to eye; 17520 is the immediate support on hourly chart, 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.