19605 IS IMPORTANT SUPPORT TO EYE; 19950 IS IMMEDIATE HURDLE

 

19605 IS IMPORTANT SUPPORT TO EYE; 19950 IS IMMEDIATE HURDLE

 

WORLD MARKETS

 

U.S. indices fell 0.1%-0.3% on Friday, extending the losing streak to fourth straight day.

 

S&P Global said its flash U.S. Composite PMI dipped to a reading of 50.1 in September from a final reading for August of 50.2.

 

U.S. 10-year treasury yield fell 6 bps to 4.436%. Dollar index rose 0.2% to 105.58. Gold gained 0.3% to $1925 per ounce.

 

Brent futures settled 3 cents lower at $93.27 a barrel while WTI futures rose 40 cents to $90.03 a barrel.

 

In Europe, FTSE inched up 0.1% but DAX and CAC were down 0.1% and 0.4% respectively. Economic activity in France fell much more quickly than expected in September. Separate survey data covering the whole euro zone showed that the economy likely contracted in the third quarter.

 

Earlier, the Bank of Japan on left interest rates unchanged at -0.1%, while maintaining its outlook and yield curve control policy, showing no impetus to end its massive economic stimulus measures.

 

For the week, S&P 500 and Nasdaq Composite tumbled 2.9% and 3.6% respectively, marking the third straight negative week and worst weekly performance since March for each. Dow slid 1.9% on the week. Brent fell 0.3% while WTI eased 0.03% for the week, breaking a three-week streak of gains.

 

AT HOME

 

Benchmark indices ended lower by a third of a percent after a choppy session, extending the losing streak to fourth straight session. Sensex lost 221 points to settle at 66009 while Nifty finished at 19674, down 68 points. Nifty mid-cap index fell 0.1% while small-cap index rose 0.3%, snapping a 3-day losing streak. Except 3.5% and 0.2% higher PSU Bank and Auto indices respectively, all the NSE sectoral indices ended lower, with Healthcare and Pharma indices leading the losses, down 1.6% each.

 

FIIs net sold stocks and index futures worth Rs 1327 cr and 1124 cr respectively but net bought stock futures worth Rs 1126 cr. DIIs were net buyers to the tune of Rs 801 cr.

 

Rupee appreciated 16 paise to end at 82.93/$.

 

For the week, Sensex and Nifty fell 2.7% and 2.6% respectively, snapping a 3-week winning streak and suffering the worst weekly cut in 15 months and 7 months respectively.

 

OUTLOOK

 

Today morning, Nikkei is up 0.7% but Hang Seng and Shanghai are down 1% and 0.4% respectively. GIFT Nifty is suggesting around 20 points lower start for our market.

 

In Friday's report we had said that 19710, the low made Thursday, around which 20-DMA was also progressed, was the immediate support, upon breach of which, 34-DMA, placed around 19600, would be crucial support to eye.

 

Nifty fell to 19657 before closing at 19674.

 

19605, the 61.8% retracement level of the recent 19223-20222 upmove, where 34-DMA is also placed, is the crucial support to eye. If this level breaks, 78.6% retracement level of the aforementioned upmove, placed at 19437, would be next downside level to eye. On the way up, 19950 is the immediate hurdle on the hourly chart, above which, 20222, the top made last week, would be bigger hurdle to eye. Meanwhile, trading shorts can be held on to with the stop-loss of 19950.

 

For Banknifty, 44360, the 78.6% retracement level of the recent 43830-46310 upmove, is the next downside level to eye, below which, the benchmark might revisit 43830 bottom made on 1st September. 45500 is the immediate hurdle on the hourly chart, above which, 46310, the top made last week, would be bigger hurdle to eye.

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