NIFTY ON TRACK TO ACHIEVE 8130 TARGET; FED IN FOCUS

NIFTY ON TRACK TO ACHIEVE 8130 TARGET; FED IN FOCUS

WORLD MARKETS                             

US indices surged between 1.2%-1.7%, with the Dow extending the winning streak to fourth day on strong consumer sentiment data and corporate earnings.

October consumer confidence came in at 94.5, beating the 87 estimate and hitting its highest level since 2007. Durable goods orders however unexpectedly declined 1.3% in September. A third report had U.S. single-family home prices rising in August on a year-over-year basis but still falling short of expectations.

European markets gained between 0.6%-2.4%

Nymex crude gained 0.5% to $81.4 a barrel; Gold was flat at $1229 an ounce.

AT HOME

After Monday's consolidation, benchmark indices resumed their upward journey by gaining nearly half a percent yesterday and closed at the highest level since 22nd September. Sensex gained 128 points to settle at 26881 while Nifty finished at 8028, up 36 points. BSE mid-cap and small-cap indices gained 0.1% and 0.8% respectively. BSE Healthcare and Power indices gained the most among the sectoral indices, rising 1.4% and 1% respectively.

Lupin reported better-than-estimated 55% rise in consolidated quarterly net profit at Rs 630 cr but missed estimates on topline and operational front. Consolidated revenue grew 18.9% to Rs 3173 cr. Operating margin expanded by 150 bps to 26.2%, lower than the 27.4% estimate.

FIIs net sold stocks and stock futures worth Rs 108 cr and 600 cr respectively but net bought index futures worth Rs 592 cr. DIIs were net sellers to the tune of Rs 100 cr.

Rupee depreciated 2 paise to close at 61.32/$.

OUTLOOK

Today morning Nikkei is up a percent and half as Japan's industrial output has risen at its fastest pace since January, coming in well above expectations. Other Asian markets are trading with gains ranging from 0.5%-1% and SGX Nifty is suggesting about 40 points higher opening for our market.

Ever since Nifty crossed 7928 hurdle last Tuesday, we have been working with targets of 8030 and 8130. The benchmark has already achieved the first one and is on track to achieve the second. Immediate support on the hourly chart has moved up to 7960, with the stop loss of which trading longs should be held on to.

Dr Reddy, Sesa Sterlite and Tech Mahindra will report their quarterly earnings today.

The Federal Open Market Committee concludes a two-day meeting today, where it is widely expected to announce the end of its massive bond-buying stimulus. Markets would closely watch out for any timeline for the interest rate hike which is currently expected to happen in July 2015.