10492-10547 IS THE IMMEDIATE RESISTANCE ZONE; 10138 IMMEDIATE SUPPORT
US indices, after two-days of meltdown, soared 1.2%-2.3% on Friday with the S & P 500 breaking six-day losing streak.
Wells Fargo and Citigroup both reported better-than-expected earnings, along with J.P. Morgan Chase, to kick off the third quarter earnings season.
Brent crude futures fell 26 cents to $80 a barrel, having dropped by 5.6% over the previous two sessions. US oil rose 37 cents to $71.34 a barrel, after falling 5.3% during the two-day sell-off.
Main European markets fell 0.1%-0.2% while Italy and Spain tumbled 0.5% and 1.2% respectively. German September inflation numbers showed a 2 percent rise for the month, boosted by energy and food prices.
For the week, US indices fell 3.7%-4.2%. European markets fell 4.4%-5.9%, marking their worst weekly declines since March. In Asia, Shanghai nosedived 7.6% while Nikkei and Hang Seng fell 5.3% and 2.9% respectively.
US crude fell 4% for the week while Brent was off roughly 5%.
Sensex and Nifty soared 2.2% and 2.3% respectively, registering largest single day gain since 25th May 2016. Sesnex settled at 34733, up 732 points while Nifty added 237 points to finish at 10472. BSE mid-cap and small-cap indices rose 2.4% and 2.6% respectively. Except a 0.8% and 0.5% lower IT and Teck indices respectively, all the BSE sectoral indices ended in green with Auto and Metal indices leading the tally, up 4% and 3.8% respectively.
FIIs net sold stocks worth Rs 1322 cr but net bought index futures and stock futures worth Rs 529 cr and 525 cr respectively. DIIs were net buyers to the tune of Rs 1287 cr.
Rupee appreciated 56 paise to end at 73.56/%.
HUL posted better-than-expected net profit, margin and volume growth for September quarter while revenue was in-line. Net profit rose 19.5% to Rs 1525 cr while revenue was up 11.1% at Rs 9234 cr. EBITDA was up 20% at Rs 2019 cr and margin rose 170 bps to 21.9%. Volume growth stood at 10%.
Consumer price index (CPI) in September at 3.77% increased marginally from 3.69% as reported in August.
The index of industrial production grew at 4.3% in the month of August, which is the slowest pace since May 2018. In July, IIP growth stood at 6.6%.
Today morning, Nikkei and Hang Seng are down 1.4% and 1% respectively and Shanghai is off 0.3%. SGX Nifty is suggesting about 20 points lower start for our market.
In Friday's report we had said that "10482, the top made on Wednesday, continues to be immediate hurdle, upon crossover of which, 200-DMA, placed around 10780, would be the next major hurdle to eye".
Nifty surged 237 points to close at 10472.
10492 is the top made last week while 10540-10547 is where a gap created by the gap down opening on Friday, 5th October, is placed which makes 10492-10547 immediate resistance zone, a crossover of which is required for a fresh upmove. If that happens, 200-DMA, placed around 10780, would be the next major resistance. 10138, the low made last week, continues to be important support.
Indiabulls Housing and Indusind Bank will report their quarterly earnings today.