TRAIL STOP-LOSS TO 17630

 

TRAIL STOP-LOSS TO 17630

 

WORLD MARKETS

 

US indices soared 2.5%-2.9% after economic data pointed to slowing inflation and a steady consumer.

 

The core personal consumption expenditures price index in September increased 0.5% month-on-month and 5.1% y-o-y, still high but mostly in-line with expectations. Personal spending rose 0.6%, more than expected.

 

Amazon plunged by 6.8% after the company posted weaker-than-expected quarterly revenue and issued disappointing fourth-quarter sales guidance. Apple rose 7.5% after the tech giant reported weaker-than-anticipated iPhone revenue, but beat Wall Street estimates for quarterly earnings and revenue. Oil giants Chevron and Exxon Mobil rose after earnings beat expectations.

 

US 10-year treasury yield rose 9 bps to 4.016%. Dollar index inched up 0.1% to 110.67. Spot gold fell 1.1% to $1,644 per ounce.

 

Brent futures fell 0.9%, to $96.07 a barrel and WTI crude fell 1% to $88.20.

 

In Europe, FTSE fell 0.4% but DAX and CAC gained 0.2% and 0.5% respectively

 

For the week, US indices climbed 2.2%-5.7%, with the Dow extending the winning streak to fourth consecutive week and notching the best week since May.  Brent rose about 2% and WTI was up about 3%.

 

AT HOME

 

After rising six tenth of percent in first hour, benchmark indices gave away half of the gains through the session to end higher by three tenth of a percent. Sensex settled at 59959, up 203 points while Nifty added 50 points to finish at 17786. Nifty mid-cap and small-cap indices however fell 0.5% and 1% respectively. Except 1.6% and 1% higher Auto and Oil & Gas indices respectively, all the NSE sectoral indices ended in red, with Metal and Pharma indices leading the losses, down 1.5% and 1.4% respectively.

 

FIIs net bought stocks worth Rs 1569 cr but net sold index futures and stock futures worth Rs 624 cr and 791 cr respectively. DIIs were net sellers to the tune of Rs 613 cr.

 

Rupee appreciated 2 paise to end at 82.47/$.

 

For the week, Sensex and Nifty gained 1.1% and 1.2% respectively, extending the winning streak to second straight week.

 

OUTLOOK

 

Today morning, Nikkei is up more than a percent while Hang Seng and Shanghai are down 0.3% and 0.5% respectively. SGX Nifty is suggesting around 170 points higher start for our market.

 

In Friday's report we had said that 17811, the top made on Tuesday, continued to be immediate hurdle, upon crossover of which, 18096, the top made in September, would be the next upside target. We had also advised holding on to longs with the stop-loss of 17520.

 

Nifty, after touching a high of 17838, eased to end at 17786 and is set to open above 17900 today.

 

18096, the top made in September, is the next upside target as well as resistance to eye; Immediat support on the hourly chart has moved up to 17630, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 41840, the all-time high made in September, is the immediate hurdle, upon crossover of which, 42200 would be next upside level to eye. 40400 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

Bharti Airtel, L&T and Tata Steel will report their quarterly earnings today.