STAY LONG WITH THE STOP-LOSS WITH 19635

 

STAY LONG WITH THE STOP-LOSS WITH 19635

 

WORLD MARKETS

 

Dow and S & P 500 were little changed while Nasdaq fell quarter of a percent as bond yield surged following strong retail sales data. Chip stocks such as Nvidia and Advanced Micro Devices

sold off as the U.S. announced plans to tighten restrictions on AI chip exports to China.

 

Retail sales rose 0.7% last month. Production at U.S. factories increased more than expected in September despite strikes in the automobile industry.

 

U.S. 10-year treasury yield jumped 13 bps to 4.836%. Dollar index was flat at 106.19. Gold rose 0.2% to $1923 per ounce.

 

Brent crude futures settled up 68 cents to $90.33 a barrel. WTI was up 52 cents at $87.18.

 

In Europe, FTSE rose 0.6% while DAX and CAC inched up 0.1% each.

 

AT HOME

 

Benchmark indices gained four tenth of a percent, snapping a 3-day losing streak. Sensex settled at 66428, up 261 points while Nifty added 80 points to finish at 19811. Nifty mid-cap and small-cap indices gained 0.4% and 0.9% respectively, with the latter posting record closing high. Except marginally lower Consumer Durables index, all the NSE sectoral indices ended higher, with Oil & Gas and Financial Services indices on the top, up 0.7% each.

 

FIIs net bought stocks, index futures and stock futures worth Rs 264 cr, 465 cr and 2188 cr respectively. DIIs were net buyers to the tune of Rs 113 cr.

 

Rupee appreciated 2 paise to end at 83.26/$.

 

Bajaj Finance quarterly results largely met estimate even as net profit marginally missed estimate while NII held up well and asset quality remained stable.

 

OUTLOOK

 

Today morning, Nikkei is down 0.4% but Hang Seng and Shanghai are up 0.8% and 0.3% respectively. GIFT Nifty is suggesting a modestly lower start for our market.

 

In yesterday's report we had said that 19882, followed by 20032, the 61.8% and 78.6% retracement levels of the recent 20222-19333 fall, continued to be upside levels to eye while 19635 continued to be immediate support, with the stop-loss of which, trading longs can be held on to.

 

Nifty rose to touch a high of 19850 before closing at 19811.

 

19882, followed by 20032, the 61.8% and 78.6% retracement levels of the recent 20222-19333 fall, continue 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.

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