19840, 19723 ARE DOWNSIDE LEVELS TO EYE; 20100 IS IMMEDIATE HURDLE

 

19840, 19723 ARE DOWNSIDE LEVELS TO EYE; 20100 IS IMMEDIATE HURDLE

 

WORLD MARKETS

 

U.S. indices fell 0.2%-1.5% after the Federal Reserve left interest rates unchanged but indicated another hike on the horizon.

 

As expected, the Fed held rates steady, but signaled that one more rate hike is expected before the end of the year. The central bank signaled it would end its hiking campaign after that increase and begin cutting rates next year — though keeping rates at a higher level for the year than signaled in June.

 

U.S. 10-year treasury yield rose 5 bps to 4.411%, its highest level since November 2007. Dollar index inched up 0.1% to 105.33. Gold was flat at $1931 per ounce.

 

Brent crude futures for November delivery fell 0.9% to $93.53 barrel, while WTI for October delivery fell 1% to $90.28.

 

European markets gained 0.7%-1.6%. U.K. August inflation came in at 6.7%, down slightly from the previous month and also lower than the 7% estimate.

 

AT HOME

 

Benchmark indices plunged 1.2% each, extending Monday’s cuts and suffering worst fall since 21st July. Sensex settled at 66800, down 796 points while Nifty lost 232 points to finish at 19901. Nifty mid-cap and small-cap indices fell 0.3% and 0.9% respectively. All the NSE sectoral indices ended in red, with Metal and Financial Services indices leading the losses, down 1.6% and 1.5% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 3111 cr, 2182 cr and 925 cr respectively. DIIs were net sellers to the tune of Rs 573 cr.

 

Rupee appreciated 20 paise to end at 83.07/$.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are down a percent each while Shanghai is off 0.2%. GIFT Nifty is suggesting more than 100 points gap-down start for our market.

 

In yesterday's report we had said that a "Sell" on the hourly chart of Nifty will be confirmed below 20000 which will pave the way for further correction.

 

Nifty broke 20000 and plunged all the way to 19878 before closing at 19901. The benchmark is set to open near 19800 today.

 

19840 and 19723, the 38.2% and 50% retracement levels of the recent 19223-20222 upmove, are the next downside levels to eye; 20100 is the immediate hurdle, with the stop-loss of which, trading shorts can be held on to.

 

For Banknifty, 45070 and 44777, the 50% and 61.8% retracement levels of the upmove seen in September, are the downside levels to eye; 45900 is immediate hurdle.

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