8500-8670 CONTINUES TO BE IMMEDIATE RANGE

8500-8670 CONTINUES TO BE IMMEDIATE RANGE

WORLD MARKETS                             

US indices ended marginally lower as an investigation into new Hillary Clinton emails kept investors on edge.

The FBI announced last Friday evening that it was looking into additional emails as part of the ongoing investigation into Hillary Clinton's use of a private email server. The revelation could damage the chances of the Democrat candidate with just over a week before Election Day.

The U.S. economy grew 2.9% in the third quarter, according to Commerce Department data released Friday. Consumer spending increased 0.5% in September after a downwardly revised 0.1% drop in August.

Organization of the Petroleum Exporting Countries (OPEC) approved a document outlining its long-term strategy, signaling members were making progress on determining how to manage output levels. However, WTI oil fell 3.8% to $46.86 per barrel, with markets unconvinced OPEC was moving toward an output freeze designed to reduce the global oil glut and as non-OPEC countries have yet to commit to any output limitations.

After falling more than half a percent on Friday, dollar index rose marginally to 98.41 from 98.34. Gold fell $4 to $1273 per ounce.

European markets lost 0.3%-1.2%

AT HOME

Benchmark indices, after opening higher, saw a sustained downward move through the session to end modestly lower on Sunday's Muhurat trading session. Sensex settled at 27930 down 11 points while Nifty finished at 8626, down 12 points.

Earlier on Friday, Sensex and Nifty ended with gains of 0.1% and 0.3% respectively. Sensex added 26 points to settle at 27942 while Nifty finished at 8638, up 23 points. BSE mid-cap and small-cap indices soared 1% each. BSE Metal index climbed 2.1%, becoming top gainer among the sectoral indices, followed by 1.4% rise in Realty index. Telecom index tumbled 1.3%, becoming top loser, followed by 0.4% each cut in IT and Teck indices.

On Friday, FIIs net sold stocks and index futures worth Rs 777 cr and 1117 cr respectively but bought stock futures worth Rs 774 cr respectively. DIIs were net buyers to the tune of Rs 1124 cr.

Core Sector, comprising of eight core industries, grew at 5% in September, up from 3.2% in August.

OUTLOOK

Today morning Asian markets are trading mixed with modest changes and SGX Nifty is suggesting a marginally higher start for our market.

In Friday's report we had mentioned that immediate resistance on the hourly chart is placed around 8670, a crossover of which is required to generate a buy on the hourly chart. The benchmark gained 23 points on Friday to end at 8638. On Sunday, after touching a high of 8678 in the opening trade, it reversed to finish at 8626.

8670-8680 continues to be immediate hurdle, a crossover of which will generate a buy on the hourly chart and 8800, the top made on surgical strike day, would be the next target if that happens.

8500 continues to be major support on the way down.

Traders are advised to wait for the breach of 8500-8680 range on either side before taking a fresh directional view.

Auto companies will release October sales figures.

US Fed starts its two-day meeting today, where it is largely expected to keep monetary policy unchanged.