18064 IS THE IMMEDIATE SUPPORT; 18350 UPSIDE LEVEL TO EYE

 

18064 IS THE IMMEDIATE SUPPORT; 18350 UPSIDE LEVEL TO EYE

 

WORLD MARKETS

 

US indices nosedived 2%-2.5%, snapping a 3-day winning streak, after the midterm elections provided no clear answers about who would control Congress and a crypto selloff weighed on markets. Markets also awaited Thursday's CPI data.

 

In case of midterm elections expectation was that Republicans would gain ground and block any future tax and spending plans. But there were no such indications of a so called "red wave".

 

Bitcoin plunged 14% to new bear market low after crypto exchange Binance said it’s backing out of plans to acquire its rival FTX.

 

Disney nosedived13.2% after missing estimates on the top and bottom lines.

 

US 10-year treasury yield fell 12 bps to 4.097%. Dollar index rose three quarters of a percent to 110.45. Gold fell 0.3% to $1707 per ounce.

 

Oil fell after data showed that U.S. crude stockpiles rose more than expected and on concerns that a rebound in COVID-19 cases in China would hurt fuel demand. Brent crude futures fell 2.8% to $92.65 a barrel and WTI crude futures dipped 3.5% to $85.83 a barrel.

 

European markets ended with modest cuts.

 

AT HOME

 

After opening half a percent higher, benchmark indices slipped three fourth of a percent from the top to end lower by a quarter of a percent. Sensex settled at 61033, down 151 points while Nifty lost 45 points to finish at 18157. Nifty mid-cap and small-cap indices fell 0.7% and 0.6% respectively. Nifty Realty and Healthcare indices were the top losers among the sectoral indices, down 1.4% and 1.2% respectively while PSU Bank index soared 3.9%, becoming the top gainer, followed by 0.3% higher FMCG index.

 

FIIs net bought stocks, index futures and stock futures worth Rs 387 cr, 405 cr and 161 cr respectively. DIIs were net sellers to the tune of Rs 1060 cr.

 

Rupee appreciated 48 paise to end at 81.44/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.5%-1.8% and SGX Nifty is suggesting around 70 points lower start for our market.

 

In yesterday's report we had said that 18350, the calendar 2022 top made in January, continued to be next upside level to eye, and had advised trailing the stop-loss in longs to 18070.

 

Nifty, after touching a high of 18296 in the initial trade, slipped to end at 18157.

 

18064, the low made on Monday, is the immediate support on the hourly chart, upon breach of which, 17959, the low made on 3rd November, would be next downside level to eye; 18350, the top made in January, continues to be upside level to eye.

 

For Banknifty, 42500 is the next upside level to eye; 41300 is the immediae support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

Eicher Motors and Apollo Hospitals will report its quarterly earnings today.