19770, 19880 ARE NEXT UPSIDE TARGETS; 19480 IS IMMEDIATE HURDLE

 

19770, 19880 ARE NEXT UPSIDE TARGETS; 19480 IS IMMEDIATE HURDLE

 

WORLD MARKETS

 

U.S. indices gained 0.4%-0.6% as U.S. Treasury yields fell on the back of dovish comments by Federal Reserve officials.

 

Fed Vice Chair Philip Jefferson said the central bank needs to be careful with how it proceeds following the recent climbs of Treasury yields, while Dallas Fed President Lorie Logan suggested surging yields may mean there is less of a need for further rate hikes. Atlanta Fed President Raphael Bostic told the American Bankers Association that Fed policy is sufficiently restrictive and that he sees no recession ahead even as the Fed’s rate hikes slow the economy and bring down inflation.

 

The International Monetary Fund raised its U.S. growth forecast for 2023 by 0.3% to 2.1%, citing resilience from consumers and stronger business investment.

 

U.S. 10-year Treasury yield fell nearly 13 basis points to about 4.65%,

 

Dollar index fell 0.3% to 105.77. Gold eased 0.1% to $1853 per ounce.

 

Brent crude settled down 50 cents at $87.65 a barrel while WTI crude fell 41 cents to $85.97 a barrel.

 

European markets surged 1.8%-2.3%.

 

AT HOME

 

Benchmark indices surged nine tenth of a percent and closed at the highest level after 27th September. Sensex added 566 points to settle at 66079 while Nifty finished at 19692, up 180 points. Nifty mid-cap and small-cap indices climbed 1.4% and 1.2% respectively. Except 0.2% lower Healthcare index, all the NSE sectoral indices ended higher, with Realty index on the top, up 4%, followed by 2% higher Metal index.

 

FIIs net sold stocks worth Rs 1005 cr but net bought index futures and stock futures worth Rs 303 cr and 4343 cr respectively. DIIs were net buyers to the tune of Rs 1963 cr.

 

Rupee appreciated 2 paise to end at 83.2450/$.

 

OUTLOOK

 

Today morning, Nikkei and Shanghai are up half a percent each while Hang Seng is up 1.6%. GIFT Nifty is suggesting around 60 points higher start for our market.

 

In yesterday's report we had said that 19675, the top made last week, was the immediate hurdle, above which, 20-DMA, placed around 19780, would be next target.

 

Nifty crossed 19675 and surged all the way to 19717 before closing at 19689.

 

20-DMA, placed around 19770, is the next upside target to eye, above which, 19882, the 78.6% retracement level of the recent fall, would be next upside level to eye; 19480, the low made Monday, is the immediate support, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 44500 is the immediate hurdle, above which, 44756 and 45053, the 38.2% and 50% retracement levels of the recent 46310-43796 fall, would be the next upside targets; 43796, the low made Monday, continues to be immediate support.

 

TCS will report its quarterly results today.

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