NIFTY EXTENDS CONSOLIDATION; 8100 CONTINUES TO BE IMMEDIATE SUPPORT

NIFTY EXTENDS CONSOLIDATION; 8100 CONTINUES TO BE IMMEDIATE SUPPORT

WORLD MARKETS                             

US indices fell 0.3%-0.9%, digesting mixed results from the banking sector as well as the release of lower-than-expected sales forecasts

U.S. retail sales barely rose in September while producer prices posted their biggest decline in 8 months.

Wal-Mart plunged 10% after the company said it expects sales to be flat in fiscal year 2016. Boeing tumbled 4.3% amid concerns about aircraft demand following Delta comments in its earnings call yesterday about a "huge bubble in excess wide-body airplanes,". Intel gained 2.4% following earnings that beat on both the top and bottom line.

Following JPMorgan's disappointing results late Tuesday, Bank of America reported earnings that beat analysts' expectations.

US 10-year treasury yield fell to 1.98%, falling below 2% for the first time since Oct. 5. Dollar index fell nearly a percent with the euro above $1.14 and the yen at 118.77 against the dollar. Gold climbed $14 to $1180 an ounce. Nymex oil settled down 2 cents at $46.64 a barrel.

Earlier data showed that China's consumer price index (CPI) rose 1.6% in September from a year earlier, against forecasts of a 1.8% rise and following August's 2% gain.

European markets gave away 0.7%-1.2%

AT HOME

Benchmark indices ended lower by a fourth of a percent after a rangebound trade, extending the losing streak to third straight day. Sensex settled at 26780, down 67 points while Nifty lost 24 points to finish at 8108. BSE mid-cap index lost 0.3% while the small-cap index gained 0.4%. BSE IT and Teck indices lost 1.3% and 1.2% respectively, becoming top losers among the sectoral indices whereas Consumer Durable and Healthcare indices gained 1.4% and 0.4% respectively.

FIIs net bought stocks worth Rs 122 cr but net sold index futures and stock futures worth Rs 873 cr and 688 cr respectively. DIIs were net sellers to the tune of Rs 208 cr.

Rupee appreciated 15 paise to end at 65.04/$.

India's wholesale price inflation for September came in at -4.54%, improving somewhat from -4.95% in August.

HUL reported 2.6% y-o-y dip in September quarter net profit at Rs 962 cr. Revenue rose 4.1% to Rs 7955 cr. Domestic consumer business grew at 5%, with 7% underlying volume growth.

Zee Entertainment Ltd posted 7.3% y-o-y growth in September quarter net profit at Rs 246.3 cr. Consolidated revenue rose 24% to Rs 1385 cr. Advertising revenue grew at a solid 35% at Rs 843 cr. Subscription revenue rose 13% to Rs 479 cr.

OUTLOOK

Today morning, Asian markets, except a marginally lower Shanghai, are trading with gains of 0.5%-1.5% and SGX Nifty is suggesting about 30 points higher opening for our market.

As we have been mentioning for couple of days, 8100 continues to be immediate support, a sustained trading below which will generate a sell on the hourly chart. On the way up, 8225 continues to be immediate hurdle, a sustained trading above which is required for a fresh upmove.