NIFTY RETREATS FROM 8320-8380 RESISTANCE ZONE

NIFTY RETREATS FROM 8320-8380 RESISTANCE ZONE

WORLD MARKETS                             

Dow and S & P 500 ended modestly lower while Nasdaq ended marginally higher yesterday as energy shares fell in tandem with oil prices and Apple declined a day before its quarterly results.

Apple fell more than 3% after its supplier Dialog Semiconductor reported preliminary earnings and guidance that missed expectations, sparking concerns that Apple's quarterly earnings may not be as strong as many expect.

September new home sales fell 11.5% to near a one-year low after two straight months of gains.

Nymex oil fell 62 cents or 1.4% at $44 a barrel.

In Europe, Germany and Spain ended marginally higher while other indices ended with cuts in the vicinity of half a percent.

AT HOME

After a gap up opening, benchmark indices saw a sustained downward move through the session to end lower by four tenth of a percent. Sensex settled at 27362, down 109 points while Nifty lost 35 points to finish at 8261. BSE mid-cap and small-cap indices lost 0.5% and 0.7% respectively. BSE Oil & Gas and Consumer Durable indices lost 0.9% each, becoming top losers among the sectoral indices while Power and Capital Goods indices gained 0.4% each.

FIIs net bought stocks and index futures worth Rs 725 cr and 1332 cr respectively but net sold stock futures worth Rs 475 cr. DIIs were net sellers to the tune of Rs 531 cr.

Rupee depreciated 13 paise to end at 64.96/$.

HDFC reported better-than-expected 18.2% rise in September quarter net profit at Rs 1605 cr aided by Rs. 315 cr dividend income from HDFC Bank. Total income rose 12.5% to Rs 7466 cr. NII, however rose at lower-than-expected 6.2% at Rs 2006 cr. Net interest margin improved to 3.95% from 3.8% q-o-q.

Bharti Airtel reported a 2% sequential degrowth in consolidated net profit Rs 1,522.7 crore for July-September quarter. Profit was impacted by slow revenue growth, weak operational performance and slight increase in finance cost but aided by exceptional gain and lower tax cost. Revenue increased by 0.7% to Rs 23,852 crore. Operating profit rose 0.04% and margin was down 20 bps to 34.7%.

OUTLOOK

Today morning Asian markets are trading with cuts of upto half a percent and SGX Nifty is suggesting a flattish start for our market.

Readers would recall that for coupled of days we have been advising booking profit in 8320-8380 region considering the fact that Nifty has runup nearly 10% from the bottom of 7540 made in early September and major resistances in the form of 34-week average and 200 DMA are placed at 8320 and 8380 respectively.

Yesterday, after touching a high of 8336, Nifty tumbled to end at 8260, vindicating our view.

Upon crossover of 8380, next hurdle would come around 8500, where the trendline adjoining recent tops on the weekly chart are placed.

Immediate support on the hourly chart is placed around 8230, a sustained trading below which will generate a sell on the hourly chart and would open up the space for the further downside till about 8100.

Axis Bank, Maruti, Lupin and Vedanta will report their quarterly earnings today.