TRAIL STOP-LOSS TO 19600

 

TRAIL STOP-LOSS TO 19600

 

WORLD MARKETS

 

U.S. indices fell 0.5%-0.6% as bond yields ticked higher after consumer prices rose more than expected in September.

 

CPI rose 0.4% over the month and 3.7% y-o-y, that was more than the expected rise of 0.3% and 3.6% respectively. Core CPI increased 0.3% on the month and 4.1% on a yearly basis, both in line with expectations.

 

U.S. 10-year treasury yield rose 14 bps to 4.70%. Dollar index surged 0.8% to 106.58. Gold fell 0.3% to $1869 per ounce.

 

Brent crude futures settled up 18 cents to $86.00 per barrel and WTI crude fell 5 cents to $83.44 a barrel.

 

In Europe, FTSE rose 0.3% but DAX and CAC fell 0.2% and 0.4% respectively.

 

AT HOME

 

Benchmark indices ended 0.1% lower after a rangebound trade, snapping a 2-day winning streak. Sensex settled at 66408, down 64 points while Nifty lost 17 points to finish at 19794. Nifty mid-cap and small-cap indices gained 0.2% and 0.6% respectively, extending the winning streak to third straight day and with the later hitting one month high on closing basis. Nifty Media index surged 3%, becoming top gainer among the sectoral indices, followed by 1.1% higher Oil & Gas index. IT index tumbled 1.7%, becoming top loser, followed by 0.2% lower Realty index.

 

FIIs net sold stocks and stock futures worth Rs 1863 cr and 1064 cr respectively but net bought index futures worth Rs 253 cr. DIIs were net buyers to the tune of Rs 1532 cr.

 

Rupee ended unchanged at 83.2425/$.

 

India's retail inflation cooled to 5% in September. Core CPI eased to 4.5% from 4.8%. August industrial output growth beat estimate at 10.3%, up from 5.7% in July.

 

Infosys beat estimate as revenue grew more than 2%. The company lowered it's top end of the full year revenue growth guidance from 3.5% to 2.5%. HCL Tech's revenue growth marginally missed estimate and company lowered guidance even as margins beat estimate.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.2%-1.4% and GIFT Nifty is suggesting around 150 points 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 fall, were the next upside levels to eye and had advised trailing stop-loss in longs to 19580.

 

Nifty, after touching a high of 19843, slipped to end at 19794 and is set to open below 19700 today.

 

19882, the 61.8% retracement level of the recent fall, continues to be next upside target; 19650-19600 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; 44200-44100 is the immediate support area, below which, 43796, the low made Monday, would be next downside level to eye.

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