18350 IS THE NEXT TARGET; TRAIL STOP-LOSS TO 17800

 

18350 IS THE NEXT TARGET; TRAIL STOP-LOSS TO 17800

 

WORLD MARKETS

 

US indices fell 0.2%-0.9% as investors digested economic data ahead of an expected rate hike from the Fed later Wednesday.

 

U.S. job openings surged in September to 10.72 million, well above a forecast of 99.85 million. The ISM manufacturing index came in at 50.2, marginally above an estimate of 50.

 

Fed is widely expected to hike interest rates by three-quarters of a point, its fourth hike in a row of that size. Market participants, however, are looking for a signal that the central bank is prepared to slow the pace of its rate-hiking plan come December.

 

US 10-year treasury yield, after hitting an intraday low of 3.92%, rebounded to end 1 bps lower at 4.046%. Dollar index too rebounded from lower level to end little changed at 111.55. Spot gold rose 0.8% to $1,646.78 per ounce.

 

Brent crude for January delivery rose 1.8%, to $94.51 a barrel. WTI crude rose 2%, to $88.27 a barrel.

 

European markets gained 0.6%-1.3%.

 

AT HOME

 

Sensex and Nifty gained 0.6% and 0.7% respectively, extending the winning streak to fourth consecutive day and closing at the highest level after 17th January, 2022. Sensex settled at 61121, up 374 points while Nifty added 133 points to finish at 18145. Nifty mid-cap and small-cap indices rose 0.9% and 0.2% respectively. NSE Metal and Pharma indices surged 2.4% and 2.1% respectively, becoming top gainers among sectoral indices, while PSU Bank and Media indices were the top losers, down 0.7% and 0.2% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 2610 cr, 949 cr and 855 cr respectively. DIIs were net sellers to the tune of Rs 730 cr.

 

Rupee appreciated 8 paise to end at 82.70/$.

 

October GST collections came in at Rs 1.52 lk cr, which is second highest collection ever after April 2022.

 

India's October manufacturing PMI came in at 55.3, up from a three-month low of 55.1 in September.

 

OUTLOOK

 

Today morning, Nikkei and Shanghai are little changed while Hang Seng is down 0.4%. SGX Nifty is suggesting a modestly higher start for our market.

 

In yesterday's report we had said that 18350, the calendar 2022 top made in January, is the next upside level to eye while immediate support on the hourly chart had moved up to 17760, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after making a top of 18175, ended at 18145.

 

18350, the calendar 2022 top made in January, continues to be next upside level to eye; Immediate support on the hourly chart has moved up to 17800, 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. 40800 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.