NIFTY REBOUNDS FROM 8320 SUPPORT; KEY EARNINGS IN FOCUS TODAY

NIFTY REBOUNDS FROM 8320 SUPPORT; KEY EARNINGS IN FOCUS TODAY

WORLD MARKETS                             

US indices ended with modest gains with Dow leading the tally with the help of Wal-Mart, countering the fall in energy stocks which were hit by melting oil prices.

Weekly jobless claims climbed 12000 to 290000, above the 280000 forecast but below 300000 for a ninth consecutive week. Separate figures from the Labor Department had hiring at its highest level in more than six years.

Wal-Mart climbed after the company reported a larger-than-expected profit as comparable sales at U.S. stores climbed for the first quarter in seven.

Nymex crude plunged $3 to $74.21 a barrel, its lowest since September 2010 after data showed crude stocks built up at a key U.S. delivery point last week. Brent oil tumbled 3.1% to $77.9 a barrel on concerns that China will see further economic slowdown and as Saudi Arabia kept silent about a possible cut in production.

Earlier data showed that China's economy lost momentum in October, with factory growth dipping and investment growth hitting a near 13-year low, reinforcing expectations of a slower increase in fuel demand.

European markets gained upto half a percent. Germany's consumer price inflation rose 0.8% in October, meeting expectations. France's yearly figure managed to beat expectations with a 0.5% rise while Spain's also saw a beat with a fall of 0.1%. A closely watched ECB survey of economists downgraded their forecasts for both inflation and growth in the euro zone. The survey expects inflation to come in at 1% in 2015 - down from earlier projections of 1.2% - and 1.4% in 2016, down from 1.5%.

AT HOME

Benchmark indices, after a positive start, soon slipped into the red and drifted further lower through the session to end with cuts of about a fourth of a percent, breaking three-day winning streak. Sensex lost 68 points to settle at 27941 while Nifty finished at 8358, down 25 points. BSE mid-cap and small-cap indices lost 0.3% and 0.2% respectively. BSE Oil & Gas and Realty indices lost the most among the sectoral indices, giving away 1.6% and 1.4% respectively. IT and Teck indices gained the most, putting on 1% and 0.7% respectively.

FIIs net bought stocks worth Rs 691 cr but net sold index futures and stock futures worth Rs 395 cr and 202 cr respectively. DIIs were net sellers to the tune of Rs 738 cr.

Rupee depreciated 4 paise to close at 61.55/$.

In order to boost government revenues and contain budget borrowing, government yesterday raised excise duty on petrol and diesel by Rs 1.50 per litre.

OUTLOOK

Today morning Asian markets are trading with negative bias but SGX Nifty is suggesting about 20 points higher opening for our market.

Ever since Nifty crossed 7928 hurdle on the daily chart on 21st October, we have been advising holding onto trading longs with a trailing stop loss.

In yesterday's report we had advised trailing stop loss to 8320. Nifty, after touching a low of 8320, bounced back to end at 8358 and is set to open about 20 points higher today, vindicating the importance of this level.

8320-8290 is an important support zone where multiple bottoms on hourly chart are placed. A breach of this support area can take the benchmark to 8180-8130 region.

India's wholesale price inflation for October would be released today and is expected to show a print of 2.2% as against 2.38% in September.

SBI, ONGC, BHEL and Tata Motors will report their quarterly earnings today.