18604 CONTINUES TO BE UPSIDE TARGET; 18100 IMMEDAITE SUPPORT

 

18604 CONTINUES TO BE UPSIDE TARGET; 18100 IMMEDAITE SUPPORT

 

WORLD MARKETS

 

US indices fell 0.6%-1.1% after a choppy session, snapping a two-day advance, after digesting comments from Fed officials and reacting to reports on possible layoffs at Amazon.

 

Fed Governor Christopher Waller suggested at a conference in Sydney that the market may have overreacted to last week’s CPI report, and said policymakers still had “a ways to go” before the hiking cycle came to an end. Federal Reserve Vice Chair Lael Brainard indicated the central bank could soon slow the pace of its interest rate increases.

 

News report suggested that Amazon will lay off about 10,000 employees as early as this week. A Fed survey showed consumers’ inflation expectations for the year ahead rose, weighing further on sentiment.

 

US 10-year treasury yield rose 4 bps to 3.872%. Dollar index rose half a percent to 106.94. Gold was flat at $1771 per ounce.

 

Oil prices fell, dragged down by a firmer U.S. dollar and record high coronavirus cases in major Chinese cities. Brent crude futures fell 3.6% to $92.55 a barrel while WTI crude futures tumbled 4.2% to $85.18 a barrel.

 

European markets rose 0.2%-0.9%. Euro zone industrial production rose much more than expected in September, and output for August was also revised upwards.

 

AT HOME

 

Bulls took a breather after Friday's sprint as Sensex and Nifty eased 0.3% and 0.1% respectively in today's trade. Sensex settled at 61624, down 171 points while Nifty lost 20 points to finish at 18329. Nifty mid-cap and small-cap indices outperformed, rising 0.1% and 0.5% respectively.  Nifty Media and FMCG indices tumbled 2.4% and 1.4% respectively, becoming top losers among the sectoral indices while Metal and Realty indices were the top gainers, up 1.7% and 1.1% respectively.

 

FIIs net bought stocks worth Rs 1089 cr but net sold index futures and stock futures worth Rs 696 cr and 854 cr respectively. DIIs were net buyers to the tune of Rs 47 cr.

 

Rupee depreciated 46 paise to end at 81.26/$.

 

Retail inflation, as represented by CPI, eased to 3-month low of 6.77% in October, down from 7.41% in the previous month. Core CPI eased to 6% from 6.1%. WPI eased to 8.39% from 10%, snapping 18-month double digit rising streak.

 

OUTLOOK

 

Today morning, Hang Seng and Shanghai are up 1.3% and 0.2% respectively while Nikkei is modestly lower. SGX Nifty is suggesting around 50 points higher start for our market.

 

In yesterday's report we had said that 18604, the all-time high made in October 20221, was the next upside target to eye and that 18100 was the immediate support on the hourly chart, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a high of 18399 in the initial trade, slipped to end at 18329.

 

18604, the all-time high made in October 20221, continues to be next upside target to eye; 18100 continues to be immediate support on the hourly chart, with the stop-loss of which, trading longs could be held on to.

 

For Banknifty, 42500 followed by 43000 are the upside levels to eye; 41500 is the immediate support, with the stop-loss of which, trading longs can be held on to.