18350 IS THE NEXT TARGET; 17850 IS THE IMMEDIATE SUPPORT

 

18350 IS THE NEXT TARGET; 17850 IS THE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices climbed 1.3%-1.4% on Friday after an uptick in the U.S. unemployment rate in October raised optimism the Federal Reserve would be less aggressive on rate hikes going forward.

 

Labor Department figures showed the U.S. economy added a better-than-expected 261,000 jobs in October. Unemployment rate however rose to 3.7% from 3.5%.

 

US 10-year treasury yield inched up 1.5 bps to 4.163%. Dollar index tumbled 1.9% to 110.79. Spot gold surged 3.2% to $1685 per ounce.

 

Oil surged on the possibility of China easing some Covid restrictions and looming EU ban on Russian oil. Brent crude surged 4.3% to $98.57 per barrel and WTI crude futures were up $4.39 or 4.9%, at $92.38.

 

European markets surged 2%-2.8%. The final euro zone PMI (purchasing managers’ index) reading for October on Friday signaled a deepening downturn

 

Hong Kong’s Hang Seng index soared 5.4% amid China reopening rumors and a report that U.S. inspections of Chinese company audits were completed more quickly than expected.

 

For the week, Dow shed 1.4%, ending four weeks of gains. The S&P and Nasdaq fell 3.4% and 5.6%, respectively, to break two-week winning streaks. In Europe, FTSE surged 4.1%, followed by 2.3% and 1.6% higher CAC and DAX respectively. In Asia, Hang Seng and Shanghai climbed 6.1% and 3.8% respectively, Nifty rose 1.9% but Nikkei eased 0.2%.

 

Oil rose nearly 5%. US 10-year treasury yield rose 3.6% to 4.164%. Dollar index inched up 0.1% to 110.79. Gold gained 2.3% for its biggest weekly percentage gain since end-July.

 

AT HOME

 

After trading near zero line for better part of the day, benchmark indices spiked up in last hour to end higher by 0.2% and 0.4% respectively. Sensex settled 114 points higher at 60950 while Nifty added 64 points to finish at 18117. Nifty mid-cap index fell a quarter of a percent while small-cap index rose 0.4%. Nifty Metal index soared 4.2%, becoming top gainer among the sectoral indices, followed by 1% higher Media and PSU Bank indices. Healthcare and Pharma indices were the top losers, down 1% each.

 

FIIs net bought stocks worth Rs 1436 cr but net sold index futures and stock futures worth Rs 245 cr and 26 cr respectively. DIIs were net sellers to the tune of Rs 549 cr.

 

Rupee appreciated 44 paise to end at 82.44/$.

 

For the week, Sensex and Nifty gained 1.6% and 1.9% respectively, extending the winning streak to third straight and closing at the highest level after the week ended 14th January 2022.

 

OUTLOOK

 

Today morning, Hang Seng and Nikkei are up 2% and 1.3% respectively while Shanghai is flat. SGX Nifty is suggesting nearly 100 points gap-up start for our market.

 

In Friday's report we had said that 18350, the calendar 2022 top made in January, continued to be next upside level to eye while 17850 continued to be immediate support, with the stop-loss of which, trading longs could be held on to.

 

Nifty rose to close at 18117 and is set to open near 18200 today.

 

18350, the calendar 2022 top made in January, continues to be next upside level to eye; 17850 continues to be immediate support, with the stop-loss of which, trading longs could be held on to.

 

For Banknifty, 41840, the top made in September 2022, which coincided with the top made in October 2021, is the important immediate hurdle, a crossover of which is required for a fresh upmove. If that happens, 42500 would be immediate upside level to eye. On the way down, 40800 is the immediate support, with the stop-loss of which, trading longs can be held on to.