TRAIL STOP-LOSS TO 19580

 

TRAIL STOP-LOSS TO 19580

 

WORLD MARKETS

 

U.S. indices gained 0.2%-0.7%, extending the winning streak to fourth straight day.

 

U.S. producer price index rose 0.5% for September, coming out higher than the estimate for a 0.3% rise but lower than the 0.7% increase in the prior month. Core PPI gained 0.2%, the same margin as in August.

 

Minutes of the September meeting showed majority of Fed officials indicated that one more hike would be likely.

 

U.S. 10-year treasury yield fell 9 bps to 4.56%. Dollar index was little changed at 105.72. Gold rose 0.8% to $1874 per ounce.

 

Brent crude fell 2.1% to settle at $85.82 a barrel and WTI crude slipped 2.9% to $83.49, a day after top OPEC producer Saudi Arabia pledged to help stabilize the market.

 

In Europe, FTSE and CAC fell 0.1% and 0.4% respectively while DAX rose 0.2%.

 

AT HOME

 

Benchmark indices rose six tenth of a percent, extending the winning streak to second straight day and closing at the highest level after 20th September. Sensex settled at 66473, up 393 points while Nifty added 121 points to finish at 19811. Nifty mid-cap and small-cap indices gained 0.5% and 0.8% respectively. Except 0.7% and 0.1% lower PSU Bank and IT indices respectively, all the NSE sectoral indices ended higher, with FMCG and Media indices on the top, up 0.9% each.

 

FIIs net sold stocks worth Rs 422 cr but net bought index futures and stock futures worth Rs 1120 cr and 936 cr respectively. DIIs were net buyers to the tune of Rs 1032 cr.

 

Rupee appreciated 6 paise to end at 83.19/$.

 

TCS's dollar revenue growth shrank for the first time in more than 3-years even as margin beat estimate in second quarter. Deal win remain robust at more than $11 bn. The company announced Rs. 17000 cr buyback at Rs. 4150 per share.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.6%-1.7% and GIFT Nifty is suggesting a flat start for our market.

 

In yesterday's report we had said that 20-DMA, placed around 19770, was the next target, above which, 19882, the 78.6% retracement level of the recent fall, would be next upside level to eye.

 

Nifty, after achieving 19770, went further to touch a high of 19839 before closing at 19811.

 

19882 followed by 20032, the 61.8% and 78.6% retracement levels of the recent fall, are the next upside levels to eye; 19580 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 34-DMA, placed around 44750, is immediate hurdle, above which, 45053 and 45350, the 50% and 61.8% retracement levels of the recent 46310-43796 fall, would be the next upside targets; 43796, the low made Monday, continues to be immediate support.

 

India's September CPI and August IIP data will be released today.

 

Infosys and HCL Tech will report their quarterly earnings today.

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