19480 BELOW FIRST HOUR LOW; 19850 IS IMMEDIATE HURDLE

 

19480 BELOW FIRST HOUR LOW; 19850 IS IMMEDIATE HURDLE

 

WORLD MARKETS

 

U.S. indices tumbled 1%-1.6% as Treasury yields surged to multiyear highs.

 

Housing starts accelerated in September, but rose at a slower-than-expected rate. Building permits fell in the month, but lost less than anticipated.

 

United Airlines tumbled 9.7% after delivering soft guidance. Morgan Stanley dropped 6.8% for its worst day since 2020 as a weak performance from the bank’s wealth management division overshadowed beats on both lines. Procter & Gamble rose 2.6% after results beat expectations.

 

U.S. President Joe Biden met with Israeli Prime Minister Benjamin Netanyahu in Tel Aviv and suggested the Gaza hospital blast that killed hundreds appeared to have been caused “by the other team.”

 

U.S. 10-year treasury yield rose 8 bps to 4.917%, its highest level in 16 years. The average rate on the popular 30-year fixed mortgage rate hit 8%, the highest level since 2000. Dollar index rose 0.4% to 106.57. Gold jumped 1.3% to $1947 per ounce.

 

Brent futures rose 1.8%, to settle at $91.50 a barrel, while WTI crude rose 1.9% to $88.32 on a bigger-than-expected U.S. storage draw and after Iran called for an oil embargo on Israel over the conflict in Gaza.

 

European markets fell 0.8%-1.1%. British consumer price inflation (CPI) unexpectedly held at 6.7% in September, keeping alive the possibility of another rise in interest rates.

 

AT HOME

 

After a positive start, Sensex and Nifty tumbled to end lower by 0.8% and 0.7% respectively. Sensex lost 551 points to settle at 65877 while Nifty finished at 19871, down 140 points. This was the fourth negative close for both the indices in last five sessions. Nifty mid-cap and small-cap indices fell 0.9% and 0.3% respectively. Nifty Financial Services and Bank indices were the top losers among the sectoral indices, down 1.2% each while Pharma and Healthcare indices were the top gainers, up 0.8% and 0.4% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 1832 cr, 385 cr and 1496 cr respectively. DIIs were net buyers to the tune of Rs 1470 cr.

 

Rupee ended unchanged at 83.26/$.

 

Bajaj Auto reported an operationally strong quarter as margins expand and cash generation remain strong. Wipro reported weak set of numbers as revenue contracted for the third straight quarter and growth outlook has worsened. Indusind Bank's numbers beat profit and NII estimates while asset quality was its best in 11-quarters.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.9%-1.8% and GIFT Nifty is suggesting more than 100 points gap-down start for our market.

 

In yesterday's report we had said that 19882, the 61.8% retracement levels of the recent 20222-19333 fall, continued to be next upside level while 19635 continued to be immediate support.

 

Nifty, after touching a high of 19840, reversed and plunged all the way to 19660 before closing at 19671. The benchmark is set to open below 19600 today.

 

Upon breach of first hour low, 19480, the low made last week, followed by 19333, the low made on 4th October, would be next downside levels to eye; 19850 is the immediate hurdle.

 

For Banknifty, 43600 followed by 43345, the bottoms made in August and June respectively, are the next downside levels to eye; 44300-44400 is the immediate resistance zone.

 

HUL, ITC, Nestle and Ultratech Cement will report their quarterly earnings today.

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