NIFTY ACHIEVES 8030 TARGET; 8130 NEXT

NIFTY ACHIEVES 8030 TARGET; 8130 NEXT

WORLD MARKETS

US indices gained about three fourth of a percent on Friday and also finished the week with best weekly gains of the year along with halting a four-week losing streak on better-than-expected earnings from Microsoft and P & G.

New-home sales rose 0.2% to a six-year high in September, while the pace of August sales was revised sharply lower.

Markets shrugged of the concern about the Ebola, with a New York City doctor testing positive for the virus, making him the fourth person to be diagnosed with Ebola in the United States and the first in the nation's biggest city.

Nymex crude fell 1.3% to $81 a barrel; gold rose $3 to $1232 an ounce.

Earlier Thursday, U.S. stocks surged after heavy-equipment maker Caterpillar boosted its profit outlook and an unexpected increase in euro-zone manufacturing eased worries about the global economy. For the week, Dow gained 2.6%, S & P 500 soared 4.1% and Nasdaq climbed 5.3%.

Key European markets ended with cuts of about six tenth of a percent on Friday on concerns over the results of Europe's bank stress tests and the first Ebola case in New York.

Media reports suggested that more euro zone banks than previously thought would fail the region-wide stress tests. Actual results on Sunday showed that 25 banks failed the test. However, 12 of those lenders have already raised 15 billion euros this year to repair their finances.

Data on Friday showed that China's new home prices fell 1.3% year on year in September, the first annual drop in nearly two years.

                                                             

AT HOME

Benchmark indices gained a fourth of a percent on the Muhurat Trading on Thursday, extending the winning streak to fifth straight day.

On Wednesday, after a gap up opening, benchmark indices traded in a narrow range through the session and finally ended higher by eight tenth of a percent. Sensex surged 211 points to settle at 26787 while Nifty finished at 7996, up 68 points. BSE mid-cap and small-cap indices gained 1.2% each. All the BSE sectoral indices ended higher with Auto and Capital Goods indices leading the tally, putting on 3% and 2.1% respectively.

FIIs net bought stocks and index futures worth Rs 8 cr and 751 cr respectively but net sold stock futures worth Rs 109 cr. DIIs were net buyers to the tune of Rs 376 cr.

Rupee appreciated 3 paise to close at 61.28/$.

OUTLOOK

Today morning Asian markets are trading mixed and SGX Nifty is suggesting about 25 points higher opening for our market.

In Wednesday's report we had mentioned that by crossing the 7928 hurdle, Nifty had broken the lower-top lower-bottom formation and that 8030, the top made on 30th September was the immediate target above which 8130 would be the next hurdle.

Nifty surged to 7996 on Wednesday and extended the upmove on the Muhurat trading day by touching a high of 8032 before closing at 8014, achieving the target mentioned above and vindicating our view.

8130, where the trendline adjoining recent tops on the daily chart is placed, continues to be the next target to eye. Immediate support on the hourly chart is placed at 7880, with the sop loss of which trading longs should be held on to.

HUL will report its quarterly earnings today.