19400 BELOW 19512; 19750 IS THE IMMEDIATE HURDLE

 

19400 BELOW 19512; 19750 IS THE IMMEDIATE HURDLE

 

WORLD MARKETS

 

U.S. indices fell 0.9%-1.5% on Friday, as 10-year treasury yield topped 5% before retreating, prompting broader concerns about the state of the economy.

 

Regional banks tumbled as higher rates raised worries about the sector’s exposure to Treasury securities that are falling in value.

 

American Express shares dipped more than 5% following mixed results.

 

U.S. 10-year treasury yield, after touching a high of 5.001%. reversed to end 8 bps lower at 4.918%. Dollar index fell 0.1% to 106.16. Gold rose 0.4% to $1981 per ounce.

 

On the geopolitical front, Hamas released two U.S. hostages from Gaza, leading to hopes the Israeli-Palestinian crisis could de-escalate without engulfing the rest of the Middle East region. However, Israel levelled a northern Gaza district after giving families a half-hour warning to escape, and hit an Orthodox Christian church where others had been sheltering, as it made clear that a command to invade Gaza was expected soon.

 

Brent crude futures fell 22 cents to settle at $92.16 a barrel. WTI December contract closed 29 cents lower at $88.08 a barrel.

 

European markets fell 1.3%-1.6% to close at their lowest level since the start of the year.

 

China’s central bank kept its benchmark loan rates unchanged for October.

 

For the week, U.S. indices fell 1.6%-3.2%. In Europe, FTSE, DAX and CAC, all fell around 2.6% each. Asian markets saw cuts ranging from 1%-3.2%. In other asset classes, U.S. 10-year treasury yield jumped 30 bps to 4.928%. Gold surged 2.5% to $1981 per ounce. WTI crude oil rose 0.7%. Dollar index fell half a percent.

 

AT HOME

 

Sensex and Nifty fell four tenth of a percent each, extending the losing streak to third straight day and closing at the lowest level after 4th October and 9th October respectively. Sensex settled at 65397, down 231 points while Nifty lost 82 points to finish at 19542. Nifty mid-cap and small-cap indices fell 1.1% and 0.8% respectively. Except 0.1% higher Private Bank index, all the NSE sectoral indices ended lower, with Consumer Durables and PSU Bank indices being the top losers, down 1.6% each.

 

FIIs net bought stocks worth Rs 456 cr but net sold index futures and stock futures worth Rs 636 cr and 812 cr respectively. DIIs were net buyers to the tune of Rs 9 cr.

 

Rupee appreciated 13 paise to end at 83.12/$.

 

For the week, Sensex and Nifty fell 1.3% and 1% respectively, snapping a 2-week winning streak.

 

ICICI Bank's quarterly numbers beat estimate on all counts and asset quality was at it's best in 9 years while loan growth and deposit growth also hit mulity-quarter highs. Strong loan growth drove profit for Kotak Mahindra Bank and asset quality remained stable even as net interest margin decline more than expected.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.4%-0.8% and GIFT Nifty is suggesting around 40 points lower start for our market.

 

In Friday's report we had said that 19512, the low made Thursday, was the immediate support while 19750 was the immediate hurdle on the hourly chart.

 

Nifty fell to 19518 before closing at 19542.

 

Upon breach of 19512, i.e. the low made last week, 19400, around which a trendline adjoining bottoms made on 31st August and 4th October is placed, would be next downside level to eye; 19750 is the immediate hurdle on the hourly chart.

 

For Banknifty, 200-DMA, placed around 43200, is the next important support to eye. 44300 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.Investment in securities market is subject to market risk.

Please check https://www.prudentbroking.com/Disclaimert.aspx for detailed disclaimer.