TRAIL STOP-LOSS TO 17250

 

TRAIL STOP-LOSS TO 17250

 

WORLD MARKETS

 

US indices fell 0.3%-0.8% to snap a 2-day winning streak amid a sharp rise in treasury yields.

 

US 10-year Treasury yield jumped nearly 14 bps to 4.138%, the highest level since July 23, 2008. Dollar index rose 0.8% to 112.90. Spot gold fell 1.5% to $1,627.81 per ounce.

 

housing starts and new building permits for September were both weaker than expected. The Fed’s Beige Book showed an economy growing modestly, with the labor market weakening in some pockets of the country.

 

Netflix surged 13% after posting earnings and revenue that beat estimates as well as strong subscriber growth for the third quarter. United Airlines climbed 5% after beating estimates on the top and bottom lines.

 

Brent crude future rose 2.6% to $92.41 a barrel and WTI future ended at $85.55 a barrel, up 3.3%. U.S. crude inventories fell unexpectedly last week - down 1.7 million barrels, against expectations for a build of 1.4 million barrels.

 

European markets fell 0.2%-0.4%. U.K. September CPI rose to 10.1%, after falling to 9.9% in August and matching the 40-year high posted in July.

 

AT HOME

 

After rising seven tenth of a percent in first hour and half, benchmark indices gave away large chunk of gains to end just modestly higher. Sensex settled at 59107, up 146 points while Nifty added 25 points to finish at 17512. Nifty mid-cap and small-cap indices gained a fourth of a percent each. Nifty Oil & Gas index rose 0.6%, becoming top gainer among sectoral indices, followed by 0.4% higher Realty, FMCG and Financial Services indices. IT and Metal indices were the top losers, down 0.9% and 0.7% respectively.

 

FIIs net sold stocks and index futures worth Rs 454 cr and 141 cr respectively but net bought stock futures worth Rs 155 cr. DIIs were net buyers to the tune of Rs 908 cr.

 

Rupee plunged 66 paise to end at record closing low of 83.02/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.5%-2.2% with Hang Seng being the top loser. SGX Nifty is suggesting around 130 points gap-down start for our market.

 

In yesterday's report we had said that 17581 and 17807, the 61.8% and 78.6% retracement levels of recent 18096-16747 fall, were the next upside levels to eye and that 17160 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 17607, eased to end at 17512 and is set to open near 17400 today.

 

17607, the top made yesterday, which roughly coincided with 61.8% retracement level of the recent 18096-16747 fall, is the immediate hurdle, upon crossover of which, 17807, the 78.6% retracement level of this fall, would be the next target; Immediate support on the hourly chart has moved up to 17250, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 40760, the 78.6% retracement levels of the recent 41677-37386 fall, is the next upside levels to eye; 39450 is the immediate support.

 

Asian Paints, Axis Bank, Bajaj Finance and Tata Consumer Products will report their quarterly results today.