NIFTY HOLDS 8030 SUPPORT; 8150 IS IMMEDIATE HURDLE

NIFTY HOLDS 8030 SUPPORT; 8150 IS IMMEDIATE HURDLE

WORLD MARKETS                             

US indices climbed 0.9%-1.4% yesterday helped by gains in energy and healthcare counters.

October ISM manufacturing came in at 50.1, slightly beating expectations of 50.0 but posting a fourth straight month of decline. Construction spending rose 0.6% in September. The final read on October manufacturing PMI hit a 6-month high at 54.1.

Nymex oil fell 45 cents or 1% to $46.14 a barrel. Gold fell $6 to $1136 an ounce.

European markets gained upto 0.9% with DAX leading the tally. Final read on October euro zone manufacturing PMI stood at 52.3, topping the flash and September print of 52.0.

Earlier, Nikkei, Shanghai and Hang Seng ended with cuts of 1-2%. China's official PMI came in at 49.8 for October, unchanged from the previous month but missing expectations of 50.0. However, the preliminary Caixin China manufacturing PMI did beat expectations, rising from September's 47.2 print to 48.3 in October.

AT HOME

After falling nearly a percent, Sensex and Nifty rebounded in last hour or so to end lower by 0.4% and 0.2% respectively. Sensex settled at 26559, down 98 points while Nifty lost 15 points to finish at 8051.  BSE mid-cap index gained 0.1% while the small-cap index lost 0.2%. BSE Metal and Capital Goods indices lost 1.3% and 1% respectively, becoming top losers among the sectoral indices while Realty and FMCG indices gained 0.9% and 0.3% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 275 cr, 256 cr and 267 cr respectively. DIIs were net buyers to the tune of Rs 145 cr.

Rupee depreciated 32 paise to end at 65.59/$.

India's Nikkei manufacturing PMI fell to a 22-month low of 50.7 in October from September's 51.2.

Maruti sold 1.34 lac units in October, a jump of 29%. Bajaj Auto reported 9% dip at 3.52 lac units.

India's Core sector grew at 3.2% y-o-y in September, compared to 2.6% in August, as high growth in electricity and fertilisers was offset by slow growth in every other sector.

OUTLOOK

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

In yesterday's report we had mentioned that 8040-8030 is a crucial support area for Nifty as that is where 34 DMA, lower band of bollinger on the daily chart as well as the 38.2% retracement level of the entire 7540-8336 upmove are placed.

The benchmark, after falling to 7996 intraday, rebounded smartly to end at 8051, holding 8030 support on closing basis.

8030 continues to be immediate support, a close below which would open up the space for further downside till about 7940 and 7840, which are the 50% and 61.8% retracement levels of the 7540-8336 upmove.

Immediate resistance on the hourly chart has moved lower to 8150, a breach of which is required to generate a buy on the hourly chart.

This makes 8030-8150 immediate range, a crossover of which should be awaited for taking a fresh view on Nifty.

Tech Mahindra and GAIL will report their quarterly earnings today.