8050-8100 IS THE RESISTANCE AREA; 7723 IMMEDIATE SUPPORT

8050-8100 IS THE RESISTANCE AREA; 7723 IMMEDIATE SUPPORT

WORLD MARKETS                             

US indices ended mixed on Friday with Dow gaining 0.7%, S & P 500 closing flat while Nasdaq, pressured by a plunge in biotech shares, lost 0.7%. Dow was supported by a 9% surge in Nike, which reported earnings that beat on both the top and bottom line, higher prices and strength in the China market.

The second revision for second-quarter GDP was revised higher to 3.9%, boosted by stronger consumer spending and construction. Consumer sentiment fell for the third straight month in September to 87.2, the lowest in nearly a year.

Nymex oil rose 1.7% to $45.70 a barrel. Gold fell $8.20 to $1146 an ounce.

European markets surged 2.5%-3.7% as concerns over the health of the global economy dimmed slightly after the Fed Chair Yellen, in a speech on Thursday, suggested it was still on course to raise interest rates in 2015.

For the week, Dow lost 0.4%, S & P 500 fell 1.4% and Nasdaq plunged 2.9%. European markets, except a marginally higher FTSE, lost 0.8%-3.3% with Spain and Germany leading the tally.

AT HOME

After falling nearly half a percent in the initial trade, benchmark indices rallied nearly eight tenth of a percent from the bottom of the day to end with modest gains on the expiry day of the September derivative series. Sensex settled at 25863, up 40 points while Nifty gained 23 points to finish at 7868. BSE mid-cap and small-cap indices gained 0.2% and 0.6% respectively. BSE IT and Consumer Durable indices gained the most among the sectoral indices, rising 2% each while Metal and Capital Goods indices were the top losers, giving away 1.4% and 1.1% respectively.

FIIs net sold stocks and index futures worth Rs 115 cr and 632 cr respectively but net bought stock futures worth Rs 39 cr. DIIs were net buyers to the tune of Rs 51 cr.

Rupee depreciated 18 paise to end at 66.16/$.

The government on Thursday notified the applicability of minimum alternate tax (MAT) on foreign companies that don't have any permanent establishment in India. This clarification puts the MAT controversy to rest as all foreign investors without business presence in India - foreign portfolio investors and companies - are now exempt from MAT, irrespective of whether tax treaties exist between India and other countries where these firms may be domiciled.

OUTLOOK

Hong Kong, Korea, and Taiwan are shut today. Shanghai and Nikkei are down about 1.5% and 1% respectively. SGX Nifty is trading around 7890, which is about the same level as Thursday's close of Nifty October future, suggesting a flattish open for our market.

As mentioned in Thursday's report, 7925 continues to be immediate hurdle on the hourly chart. On the way down, 7723, the low made last week, is the immediate support, a breach of which would open up the possibility of the retest of the 7540 bottom.

BEML, Cadila, Bharti Infratel, Marico, NCC and TV18 will start trading in derivative segment from today.