18442 ABOVE 18330; 18133 IS THE IMMEDIATE SUPPORT

 

18442 ABOVE 18330; 18133 IS THE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices rose 0.3%-1% as minutes of the latest Fed meeting signaled a potential slowdown in tightening ahead.

 

The minutes also showed an emerging debate within the Fed over the risks the rapid policy tightening could pose to economic growth and financial stability, even as policymakers acknowledged there had been little demonstrable progress on inflation and that rates still needed to rise.

 

Data showed U.S. business activity contracted for a fifth straight month in November, with a measure of new orders dropping to its lowest level in 2-1/2 years as higher interest rates slowed demand. Jobless claims increased more than expected last week, even though labor market conditions remain tight.  Durable goods orders for October came in at 1%, more than the 0.5% expected.

 

US 10-year treasury yield fell 6 bps to 3.698%. Dollar index tumbled a percent to 106.10. Gold rose half a percent to $1749 per ounce.

 

Oil tumbled as the G7 nations considered a price cap on Russian oil above the current market level and as US gasoline inventories built by more than expected. Brent January futures fell $3.57, or 4%, to $84.79 a barrel and WTI crude fell $3.50, or 4.3%, to $77.45.

 

European markets gained up to 0.3%. S&P Global's flash Composite PMI for Eurozone rose to 47.8 in November from 47.3 in October.

 

AT HOME

 

Benchmark indices ended marginally higher after a volatile session, extending the wining streak to second consecutive day. Sensex settled at 61510, up 91 points while Nifty added 23 points to finish at 18267. Nifty mid-cap and small-cap indices rose 0.3% and 0.5% respectively. Nifty Media and PSU Bank indices climbed 1.1% and 1% respectively, becoming top gainers among the sectoral indices while Metal and IT indices were the top losers, down 0.4% and 0.1% respectively.

 

FIIs net sold stocks worth Rs 790 cr but net bought index futures and stock futures worth Rs 283 cr and 1198 cr respectively. DIIs were net buyers to the tune of Rs 414 cr.

 

Rupee depreciated 18 paise to end at 81.84/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.2%-1.2% and SGX Nifty is suggesting around 50 points higher start for our market.

 

In yesterday's report we had said that 20-DMA, which had moved up to 18110, continued to be downside support to eye while 18330 continued to be immediate hurdle on the hourly chart.

 

Nifty after touching a high of 18325, slipped to end at 18267.

 

18330 continues to be immediate hurdle on the hourly chart, upon crossover of which, 18442, the top made last week, would be next resistance; 18133, the low made Monday, which now coincides with 20-DMA, is the immediate support.

 

For Banknifty, 43000-43200 continues to be target area; Immediate support on the hourly chart has moved up to 42400, with the stop-loss of which, trading longs can be held on to.

 

US markets will be closed for the Thanksgiving holiday today and will close early on Friday.