18604 ABOVE 18350; 17959 IS THE IMMEDIATE SUPPORT

 

18604 ABOVE 18350; 17959 IS THE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices soared 3.7%-7.4% for their biggest upmove in two years, after a smaller-than-expected rise in consumer prices for the month of October raised hopes that inflation has peaked.

 

October’s CPI increased 0.4% for the month and 7.7% from a year ago, expected figures being 0.6% and 7.9% respectively. Core CPI, which excludes volatile food and energy costs, increased 0.3% for the month and 6.3% on an annual basis, also less than expected.

 

US 10-year treasury yield tumbled 28 bps to 3.818%. Dollar index plunged 2.3% for its worst day since 2009 to reach 107.93, it's lowest level in 2 months. Gold surged 2.9% to $1755 per ounce.

 

Brent crude settled 1.1% higher at $93.67 and WTI rose 0.8% to settle at $84.67 a barrel.

 

European markets gained 1.1%-3.5%.

 

AT HOME

 

Benchmark indices fell seven tenth of a percent, extending the losing streak to second straight day. Sensex settled at 60613, down 420 points while Nifty lost 128 points to finish at 18028. Nifty mid-cap and small-cap indices tumbled 1.2% each. All the NSE sectoral indices ended in red, with Auto and PSU Bank indices leading the losses, down 2% and 1.3% respectively.

 

FIIs net bought stocks worth Rs 36 cr but net sold index futures and stock futures worth Rs 1520 cr and 887 cr respectively. DIIs were net sellers to the tune of Rs 967 cr.

 

Rupee depreciated 37 paise to end at 81.81/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 1.4%-5% with Hang Seng on the top. SGX Nifty is suggesting nearly 300 points gap-up start for our market.

 

In yesterday's report we had said that 18064, the low made on Monday, was 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.

 

Nifty broke 18064 and plunged all the way to 17969 before closing at 18028. The benchmark is set to open near 18300 today.

 

18350, the calendar 2022 top made in January, is the immediate upside level to eye, upon crossover of which, 18604, the all-time high made in October 2021, would be next target; 17959, the low made on 3rd November, continues to be immediate support.

 

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