19343, 19463 ARE NEXT UPSIDE TARGETS; 19120 IS IMMEDIATE SUPPORT

 

19343, 19463 ARE NEXT UPSIDE TARGETS; 19120 IS IMMEDIATE SUPPORT

 

WORLD MARKETS

 

U.S. indices gained 0.7%-1.4% on Friday after a soft jobs report drove bond yields lower.

 

The U.S. economy last month added 150,000 jobs, below the 170,000 estimate and lower than September’s blowout of 297,000 addition. The unemployment rate rose to 3.9%, compared to expectations that it would hold steady at 3.8%. Average hourly earnings also missed expectations on a monthly basis, rising 0.2% in October, below the anticipated 0.3% increase.

 

U.S. 10-year treasury yield fell 11 bps to 4.574%. Dollar index plunged 1% to 105.07. Gold rose 0.3% to $1992 per ounce.

 

Brent crude futures fell 2.3% to $84.89 a barrel and WTI crude futures fell 2.4%, to $80.51 a barrel.

 

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

 

A private sector survey on showed that while China’s services activity expanded at a slightly faster pace in October, sales grew at the softest rate in 10 months and employment stagnated as business confidence waned.

 

For the week, U.S. indices surged 5.1%-6.6% for their best week of 2023. Oil settled down more than 6% on the week.

 

AT HOME

 

Benchmark indices rose nearly half a percent each, matching yesterday's gains and closing at the highest level after 23rd October. Sensex settled at 64363, up 282 points while Nifty added 97 points to finish at 19230. Nifty mid-cap and small-cap indices gained 0.7% and 1.2% respectively. All the NSE sectoral indices ended in green, with Realty index on the top, up 2.5%, followed by 1.4% higher Media index.

 

FIIs net sold stocks worth Rs 12 cr but net bought index futures and stock futures worth Rs 1022 cr and 2389 cr respectively. DIIs were net buyers to the tune of Rs 403 cr.

 

Rupee depreciated 4 paise to end at 83.28/$.

 

For the week, Sensex and Nifty gained 0.9% and 1% respectively, snapping a 2-week losing streak.

 

SBI numbers beat estimate with asset quality at it's best in 32-quarters while loan-growth margin was in-line with estimate. Net Interest Margin was at 5-quarter low.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are up 2.4% and 1.8% respectively while Shaghai is up half a percent. GIFT Nifty is suggesting around 150 points gap-up start for our market.

 

In Friday's report we had said that 19300 continued to be immediate hurdle on the hourly chart while 18940, continued to be immediate support.

 

Nifty rose to touch a high of 19276 before closing at 19230. The benchmark is set to open near 19350 today.

 

19343 and 19463, the 50% and 61.8% retracement level of the recent 19850-18837 fall, are the upside levels to eye; 19120 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 43715 and 44153, the 61.8% and 78.6% retracement levels of the recent 44700-42100 fall, are the next upside targets to eye. 42850 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

Divi's Lab and HPCL will report their quarterly earnings today.

Investment in securities market is subject to market risk.

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