8320-8380 MAJOR RESISTANCE AREA; 8200 IMMEDIATE SUPPORT
Dow and S & P 500 ended marginally lower while Nasdaq lost half a percent yesterday, digesting a slew of corporate earnings reports and U.S. housing starts data.
IBM tumbled nearly 6% after revenues came in far below consensus.
September housing starts came in well above expectations at 1.206 million.
Nymex oil fell 0.7% to $45.55 a barrel while Brent rose 15 cents.
European markets ended with cuts of upto 1%.
After trading with a positive bias in the first half, benchmark indices slipped in the late noon trade to end modestly lower, breaking three-day winning streak. Sensex settled at 27307, down 58 points while Nifty lost 13 points to finish at 8262. BSE mid-cap and small-cap indices however gained 0.5% and 0.2% respectively. BSE Metal and Oil & Gas indices lost 1.8% and 0.7% respectively, becoming top losers among the sectoral indices whereas Power and IT indices were the top gainers, putting on 1.4% and 1% respectively.
FIIs net bought stocks, index futures and stock futures worth Rs 524 cr, 31 cr and 475 cr respectively. DIIs were net sellers to the tune of Rs 355 cr.
Rupee depreciated 26 paise to end at 65.06/$.
Hero Motocorp reported better-than-estimated 1.1% rise in September quarter net profit at Rs 772 cr on better operational performance. Revenue declined 1.1% to Rs 6837 cr. Operating margin expanded by 230 bps to 15.8%.
ACC reported 40% dip in net profit at Rs 115 cr, hit by sales decline as well as subdued prices. Income fell 1% to Rs 2789 cr. Operating margin fell to 11.2% from 13.5%.
Today morning Asian markets are trading with modest gains and SGX Nifty is suggesting a flattish start for our market.
In yesterday's report we had mentioned that 8320-8380 is the next major target as well as the resistance area where 8320 is the 34-week moving average and 8380 is the 200 DMA.
Nifty, after touching a high of 8294, slipped to end at 8262.
Considering the fact that Nifty has risen nearly 10% from the bottom of 7540 made in early September and is close to major resistances as mentioned above, it would not be a bad idea to book some profit in long positions and hold on to remaining ones with the stop loss of 8200, which is the immediate support on the hourly chart.
HDFC Bank, Bajaj Auto, Wipro, Cairn and Idea will report their quarterly earnings today.