STAY LONG WITH THE STOP-LOSS OF 19635

 

STAY LONG WITH THE STOP-LOSS OF 19635

 

WORLD MARKETS

 

U.S. indices surged 0.9%-1.2% on optimism over corporate earnings.

 

After strong start from JPMorgan Chase on Friday, Charles Schwab posted strong earnings yesterday.

 

U.S. 10-year treasury yield rose 9 bps to 4.708%. Dollar index fell 0.4% to 106.21. Gold fell 0.6% to $1920 per ounce.

 

Oil fell on expectation that the U.S. and Venezuela could soon reach a deal easing sanctions on Venezuelan crude exports. Brent crude futures settled at $89.65 a barrel, down 1.4%. WTI crude fell 1.2%, to finish at $86.66 a barrel.

 

European markets gained 0.3%-0.6%.

 

AT HOME

 

Benchmark indices ended marginally in the red, extending the losing streak to third straight day. Sensex settled at 66166, down 116 points while Nifty lost 19 points to finish at 19731. Nifty mid-cap and small-cap indices however gained 0.2% and 0.4% respectively. Nifty Metal and Consumer Durables indices gained 0.9% and 0.8% respectively, becoming top gainers among the sectoral indices while Pharma and Healthcare indices were the top losers, down 0.5% and 0.4% respectively.

 

FIIs net sold stocks and stock futures worth Rs 594 cr and 215 cr respectively but net bought index futures worth Rs 28 cr. DIIs were net buyers to the tune of Rs 1184 cr.

 

 

Rupee depreciated 2 paise to end at 83.28/$.

 

India's September WPI inflation came in at negative 0.26% as against negative 0.52% in August, marking the sixth straight month of negative reading.

 

HDFC Bank reported mixed set of numbers. Net Profit, at nearly Rs. 160000 cr, beat estimates while NII, at nearly Rs 27000 cr, marginally missed estimates.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are up 1.1% and 0.6% respectively while Shanghai is marginally in the red. GIFT Nifty is suggesting around 65 points higher start for our market.

 

In yesterday's report we had said that 19882 the 61.8% and retracement levels of the recent 20222-19333 fall, was upside levels to eye while, 19635, the low made on Friday, was the immediate support, with the stop-loss of which, trading longs can be held on to.

 

Nifty ended little changed at 19731 and is set to open near 19800 today.

 

19882, followed by 20032, the 61.8% and 78.6% retracement levels of the recent 20222-19333 fall, continues to be upside levels to eye; 19635 continues to be immediate support, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 44710, the top made last week, around which 34-DMA is also placed, continues to be important immediate hurdle, upon crossover of which, 45050 and 45350, the 50% and 61.8% retracement levels of the recent fall, would be next upside targets; 43800, the low made last week, is the immediate support, upon breach of which, 43600 followed by 43345, the bottoms made in August and June respectively, would be next downside levels to eye.

Investment in securities market is subject to market risk.

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