19300 CONTINUES TO BE IMMEDIATE HURDLE; 18940 IMMEDIATE SUPPORT

 

19300 CONTINUES TO BE IMMEDIATE HURDLE; 18940 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

U.S. indices gained 0.4%-0.6%

 

Caterpillar slid more than 6% after guiding that its fourth-quarter revenue would only be “slightly” higher than the year-ago period. JetBlue shares dropped more than 10% after results missed expectations on the top and bottom lines.

 

U.S. 10-year treasury yield rose 4 bps to 4.933%. Dollar index rose half a percent to 106.71. Gold fell 0.6% to $1984 per ounce.

 

The Fed is set to release its latest interest rate decision Today and is widely expected to keep rates unchanged. Markets would watch out for hints about whether it’s likely done raising rates from guidance released alongside the rate decision and Fed Chairman Jerome Powell’s post-meeting press conference.

 

Brent crude January contract fell 1.4%，to $85.02 while WTI crude for December delivery fell 1.6% to $81.02.

 

In Europe, FTSE fell 0.1% while DAX and CAC gained 0.6% and 0.9% respectively. Euro zone inflation fell to a two-year low of 2.9% in October, as against the expected figure of 3.1%.

 

China's October manufacturing PMI came in at 49.5 Vs estimate of 50.2. Non-manufacturing PMI fell to 50.6 Vs 51.7 in September. As a result, composite PMI came in at 50.7. The Bank of Japan announced it would keep interest rates unchanged but make its yield curve control policy more flexible.

 

For the month, U.S. indices fell 1.4%-2.2% for their third consecutive negative month.

 

AT HOME

 

After starting half a percent higher, benchmark indices plunged eight tenth of a percent from the top to end lower by three tenth of a percent, snapping a 2-day winning streak. Sensex settled at 63874, down 237 points while Nifty lost 61 points to finish at 19079. Nifty mid-cap and small-cap indices however gained 0.4% each, extending the winning streak to third straight session. Nifty Realty and Media indices gained 1.3% and 0.9% respectively, becoming top gainers among sectoral indices, while Auto index was the top losers, down 0.7%, followed by 0.6% lower Pharma and Healthcare indices.

 

FIIs net sold stocks worth Rs 696 cr but net bought index futures and stock futures worth Rs 68 cr and 562 cr respectively. DIIs were net buyers to the tune of Rs 340 cr.

 

Rupee ended unchanged at 83.25/$.

 

For the month, Sensex and Nifty fell 3% and 2.8% respectively for their worst cut since December 2022.

 

India's April-September fiscal deficit stood at Rs. 7.02 lk cr, which is 39.3% of the FY24 target.

 

September eight core industries' growth slowed to a 4-month low of 8.1% vs 12.1% in the previous month.

 

Bharti Airtel reported 1% decline in revenue and 17% decline in profit on account of higher taxes but ARPU continues to grow, hitting Rs. 203. L & T beat estimate with 19% revenue growth and order book growth of 72% y-o-y and also guided for a higher revenue and order inflow. Tata Consumer delivered a good set of numbers.

 

OUTLOOK

 

Today morning, Nikkei is up 2%, Shanghai is flat while Hang Seng is down 0.5%. GIFT Nifty is suggesting around 30 points lower start for our market.

 

In yesterday's report we had said that 19300 continued to be immediate hurdle on the hourly chart while 18940, the low made Monday, was the immediate support.

 

Nifty, after touching a high of 19233, slipped to 19056 before closing at 19079.

 

19300 continues to be immediate hurdle on the hourly chart; 18940, the low made yesterday, is the immediate support, below which, 18837, the low made last week, would be crucial support to eye.

 

For Banknifty, 43400 continues to be immediate hurdle on the hourly chart, above which, 43715 and 44153, the 61.8% and 78.6% retracement levels of the recent 44700-42100 fall, would be next upside levels to eye; 42390, the low made yesterday, is the immediate support below which, 42105, the low made last week, would be next downside level to eye.

 

Tata Steel, Sun Pharma, Hero Motocorp and Britannina will report their quarterly numbers today.

 

Auto companies will report October sales figures today.

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