18800 IS THE IMPORTANT SUPPORT; 19300-19325 IS THE RESISTANCE ZONE

 

18800 IS THE IMPORTANT SUPPORT; 19300-19325 IS THE RESISTANCE ZONE

 

WORLD MARKETS

 

U.S. indices fell 0.8%-1.8%.

 

U.S. third-quarter GDP showed a 4.9% rise, better than the 4.7% increase anticipated. However, weekly jobless claims came in at 210,000, greater than the estimate of 207,000.

 

U.S. 10-year treasury yield fell 11 bps to 4.847%. Dollar index inched up 0.1% to 106.62. Gold rose 0.2% to $1984 per ounce.

 

Brent crude futures declined 2.1%, to $88.21 a barrel and WTI crude futures slid by 2.3%, to $83.46 a barrel.

 

The European Central Bank left interest rates unchanged as expected, snapping an unprecedented streak of ten consecutive rate hikes, and maintained its guidance which implies steady policy ahead.

 

European markets fell 0.4%-1.1%.

 

AT HOME

 

Benchmark indices nosedived 1.4% each for their worst cut since 13th March and closed at the lowest level in 4-months. Sensex lost 900 points to settle at 63148 while Nifty finished at 18852, down 270 points. Nifty mid-cap and small-cap indices fell 1.2% and 0.3% respectively. All the NSE sectoral indices ended in red, with Metal and Financial Services indices being the top losers, down 1.6% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 7703 cr, 3405 cr and 6703 cr respectively. DIIs were net buyers to the tune of Rs 6558 cr.

 

Rupee depreciated 5 paise to end at 83.23/$.

 For the October derivative series, Nifty fell 3.4%.

Asian Paints Q2 numbers were a mixed bag as Net Profit and margin were in-line with estimate but volume growth, at 6%, disappointed. ACC missed estimate even as revenue rose 11%.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.1%-1.2% and GIFT Nifty is suggesting a flattish start for our market.

 

In yesterday's report we had said that upon breach of 19074, next support to watch out would be 18925, which is the 38.2% retracement level of the entire upmove seen since March 2023.

 

Nifty plunged all the way to 18837 before closing at 18852.

 

34-week moving average, placed around 18800, is the important support to eye; 19300-19325 is the immediate resistance zone.

 

For Banknifty, 41600, the 61.8% retracement level of the entire upmove seen since March, is the next support; 43400 is immediate hurdle.

 

Reliance Industries, Dr Reddy, Cipla, Bajaj Finance, BPCL, Maruti and SBI Life will report their quarterly earnings today.

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