19480 IS IMMEDIATE SUPPORT; 19780 ABOVE 19675

 

19480 IS IMMEDIATE SUPPORT; 19780 ABOVE 19675

 

WORLD MARKETS

 

After starting lower on account of Israel-Palestine conflict, U.S. indices rebounded to end higher, with Dow and S & P 500 up 0.6% each while Nasdaq rose 0.4%.

 

U.S. bond market was closed Monday for Columbus Day. Dollar index was little changed at 106.06. Gold surged 1.6% to $1861 per ounce.

 

Brent crude settled 4.2% higher at $88.15 a barrel, while WTI rose 4.3% to $86.38 per barrel. It was the biggest one-day gain for both benchmarks since April 3.

 

In Europe, FTSE was little changed while DAX and CAC wer down 0.6% each.

 

AT HOME

 

Benchmark indices slipped seven tenth of a percent each, snapping a 2-day winning streak. Sensex settled at 65512, down 483 points while Nifty lost 141 points to finish at 19512. Nifty mid-cap and small-cap indices tumbled 1.3% and 1.8% respectively with the former closing at the lowest level after 1st September. Except 0.03% higher Healthcare index, all the NSE sectoral indices ended lower, with PSU Bank and Media indices being the top losers, down 3.1% and 2.2% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 998 cr, 290 cr and 547 cr respectively. DIIs were net buyers to the tune of Rs 2661 cr.

 

Rupee depreciated 2 paise to end at 83.2625/$.

 

OUTLOOK

Today morning, Nikkei and Hang Seng are up nearly 2% while Shanghai is marginally in the red. GIFT Nifty is suggesting around 75 points higher start for our market.

 

In yesterday's report we had said that 20-DMA, placed around 19800, was the next upside target as well as resistance to eye while 19550-19500 was the immediate support zone.

 

Nifty plunged to 19480 before closing at 19512 and is set to open above 19550 today.

 

19675, the top made last week, is the immediate hurdle, above which, 20-DMA, placed around 19780, would be next target; 19480, the bottom made yesterday, is the immediate support, below which, 19333, the low made last week, which roughly coincided with 20-week moving average, would be the important support to eye.

 

For Banknifty, 43796, the low made yesterday, which coincided with a trendline adjoining bottoms made in June and August, is the immediate support, below which, 43600 followed by 43345, the bottoms made in August and June respectively, would be next downside levels to eye; 44600 is the immediate hurdle on the hourly chart.

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