TRAIL STOP-LOSS TO 17760

 

TRAIL STOP-LOSS TO 17760

 

WORLD MARKETS

 

US indices fell 0.4%-1% ahead of the start of Fed's 2-day policy meeting.

 

US 10-year treasury yield rose 5 bps to 4.058%. Dollar index rose 0.8% to 111.58. Spot gold slipped 0.5% to $1,633.81 per ounce.

 

Brent crude futures dropped 1% to $94.85 a barrel and WTI crude fell 1.9% to $86.21 a barrel.

 

In Europe, FTSE and DAX rose 0.7% and 0.1% respectively but CAC fell 0.1%. Euro zone inflation surged to 10.7% in October, the highest level since the 19-member bloc was formed. Growth slowed with preliminary growth data for the third quarter showing gross domestic expanded just 0.2%.

 

Data earlier showed factory activity in China fell unexpectedly in October.

 

For the month, Dow surged 14% for its best performance since 1976. S & P 500 and Nasdaq gained 8% and 4% respectively. All three snapped 2-month losing streak.

 

AT HOME

 

Sensex and Nifty soared 1.3% each, extending the winning streak to third straight day and closing at the highest level after 18th January and 13th September respectively. Sensex settled at 60746, up 786 points while Nifty added 225 points to finish at 18012. Nifty mid-cap and small-cap indices gained 1.4% and 0.1% respectively. All the NSE sectoral indices ended higher, with consumer Durables index on the top, up 1.5%, followed by 1.4% higher Auto, Financial Services, IT and Oil & Gas indices.

 

FIIs net bought stocks, index futures and stock futures worth Rs 4179 cr, 1553 cr and 1850 cr respectively. DIIs were net sellers to the tune of Rs 1107 cr.

 

Rupee depreciated 31 paise to end at 82.78/$.

 

For the month, Sensex and Nifty gained 5.8% and 5.4% respectively and posted highest monthly close ever.

 

OUTLOOK

 

Today morning, Hang Seng is up nearly 2% while Shanghai and Nikkei are modestly higher. SGX Nifty is suggesting more than 100 point higher start for our market.

 

In yesterday's report we had said that 18096, the top made in September, was the next upside target as well as resistance to eye and that immediate support on the hourly chart had moved up to 17630, with the stop-loss of which, trading longs could be held on to.

 

Nifty soared to touch a high of 18022 before closing at 18012. The benchmark is set to open above 18100 today.

 

With today's higher start, Nifty is set to cross 18096 top made in September. 18350, the calendar 2022 top made in January, is the next upside level to eye; Immediate support on the hourly chart has moved up to 17760, 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. 40400 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.