STAY LONG WITH THE STOP-LOSS OF 8600

STAY LONG WITH THE STOP-LOSS OF 8600

WORLD MARKETS                             

Dow and S & P 500 gained 0.2% each while Nasdaq inched up 0.05% helped by better-than-expected earnings and rising oil prices.

US crude soared 2.6% to $51.60 and Brent added 1.9% to $52.67 as data from the U.S. Energy Information Administration showed crude stocks fell 5.2 million barrels in the week ended October 14, as against market expectations for a 2.7-million barrel build.

Federal Reserve's Beige Book, which summarizes economic conditions in the country, said economic activity in the U.S. rose at a modest pace in most regions. Housing starts fell 9% last month, but permits spiked 6.3%. Mortgage applications rose 0.6% last week.

Morgan Stanley, Abbott Labs and BB&T beat their earnings per share and revenue expectations.

European markets gained upto a percent.

AT HOME

Benchmark indices ended lower by about a fourth of a percent after a choppy session, consolidating huge gains made yesterday. Sensex lost 66 points to settle at 27984 while Nifty finished at 8659, down 19 points. BSE mid-cap and small-cap indices however gained 0.1% and 0.6% respectively. FMCG and Realty indices Benchmark fell 1.1% and 0.9% respectively, becoming top gainers among the sectoral indices while Utilities and Power indices rose 1.2% each, becoming top gainers.

FIIs net sold stocks and index futures worth Rs 283 cr and 112 cr respectively but net bought stock futures worth Rs 111 cr. DIIs were net buyers to the tune of Rs 725 cr.

Rupee appreciated 5 paise to end at 66.67/$.

No agreement was reached on GST rate but an agreement appeared possible on imposing a cess on ultra-luxury and demerit goods to compensate states for potential revenue loss on the second day of the meeting of GST Council. The Council will now meet on November 3-4.

OUTLOOK

Today morning, Asian markets, except a marginally lower Shanghai are trading with gains of upto a percent with Nikkei on the top and SGX Nifty is suggesting about 25 points higher start for our market.

In yesterday's report we had mentioned that having crossed immediate hurdle of 8630, next target area to watch out for Nifty is 8770-8800 where 8770 is where the trendline adjoining major recent tops on the daily chart is placed while 8800 is the top made on the surgical strike day.

The benchmark, after touching a high of 8699, eased to end at 8659 but is set to open higher today.

8770-8800 continues to be upside target/hurdle area to eye. 8600 continues to be immediate support, with the stop-loss of which trading longs can be held on to.

Reliance Industries and Yes Bank will report their quarterly earnings today.

ECB, in its monetary policy review scheduled today, is expected to keep interest rates and an 80-billion-euro per month bond buying program unchanged. However, ECB President Mario Draghi will likely emphasize the continued need for monetary stimulus, reinforcing expectations for an extension of the ECB's asset buys beyond its scheduled end next March.