STAY LONG WITH THE STOP-LOSS OF 17000

 

STAY LONG WITH THE STOP-LOSS OF 17000

 

WORLD MARKETS

 

US indices surged 2.8-3.3% on Tuesday.  Yesterday, after opening with cuts of 1.4%-2%, US indices saw a sustained upward move through the session to end with cuts of just 0.1%-0.2%

 

September’s ISM services index and the private payrolls report by ADP both beat estimates. Data from ADP showed addition of 208,000 private jobs, which beat the 200,000 estimate.

 

US 10-year treasury yield rose 13 bps to 3.755%, after declining for two consecutive days at the start of the week. Dollar index climbed 1.4% to 111.74. On Tuesday, it plunged 1.3% for its biggest daily percentage decline since March 2020. Gold fell half a percent to $1716 per ounce.

 

Oil prices rose to three-week highs, as OPEC+ agreed to cut production by 2 million barrels per day from November, its deepest cuts to production since the 2020 COVID pandemic. Brent crude rose $1.57, or 1.7%, to settle at $93.37 a barrel and WTI crude rose $1.24, or 1.4%, to settle at $87.76 a barrel, after hitting a three-week peak at $1,729 on Tuesday.

 

European markets fell 0.5%-1.5%. S&P Global's Eurozone composite PMI fell to 48.1 in September, down 0.1 points from its flash estimate and 0.8 points from the prior month, with both the services and manufacturing PMIs also posting monthly drops.

 

AT HOME

 

Benchmark indices soared 2.3% each, posting their biggest single day gain in more than a month. Sensex settled at 58065, up 1276 points while Nifty added 387 points to finish at 17274. Nifty mid-cap and small-cap indices climbed 2.7% and 1.8% respectively. All the NSE sectoral indices ended higher, with Private Bank and Metal indices on the top, up 3.2% and 3.1% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 1345 cr, 3091 cr and 2181 cr respectively. DIIs were net buyers to the tune of Rs 946 cr.

 

Rupee appreciated 35 paise to end at 81.52/$.

 

OUTLOOK

 

Nikkei is up 0.8% today while Hang Seng is off half a percent. SGX Nifty is trading at 17435, suggesting 140 points higher start for our market when compared to Tuesday's close of Nifty futures.

 

In Tuesday's report we had said that 17196-17291, the gap created by last week’s gap-down opening, continued to be immediate resistance zone while 16747, the low made last week continued to be important immediate support.

 

Nifty soared to touch a high of 17287 before closing at 17274 and is set to open near 17300 today.

 

17422 and 17581, the 50% and 61.8% retracement levels of the recent 18096-16747 fall, are the next upside levels to eye; 17000 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 34-DMA and 20-DMA, placed around 39550 and 39840, are the upside levels to eye; 38300 is the immediate support.