10547 CONTINUES TO BE IMMEDIATE HURDLE; 10370 NEAREST SUPPORT

10547 CONTINUES TO BE IMMEDIATE HURDLE; 10370 NEAREST SUPPORT

WORLD MARKETS

US indices fell 0.4%-0.9%, led lower by technology shares.

Bank of America reported better-than-expected earnings and revenue.

Retail sales rose just 0.1% in September as against expected gain of 0.6%.

US oil rose 44 cents to $71.78 on supply worries after a Saudi journalist Jamal Khashoggi, a critic of the Saudi kingdom and U.S. resident, disappeared after visiting the Saudi consulate in Istanbul. Brent rose 25 cents to $80.68

European markets, except a flat France, gained 0.2%-0.8%.

AT HOME

Benchmark indices ended higher by four tenth of a percent, extending the winning streak to second day. Sensex added 131 points to settle at 34865 while Nifty finished at 10512, up 40 points. BSE mid-cap and small-cap indices gained 0.6% and 1.4% respectively. BSE IT and Healthcare indices climbed 2.2% each, becoming top gainers among the sectoral indices while Consumer Durable and Auto indices were the top losers, down 1.2% and 0.5% respectively.

FIIs net bought stocks and stock futures worth Rs 68 cr and Rs 474 cr respectively but net sold index futures worth Rs 1208 cr. DIIs were net buyers to the tune of Rs 295 cr.

Rupee depreciated 27 paise to end at 73.83/$.

India's September trade deficit fell to a 5-month low of $13.98 bn from $17.39 in August. Exports fell 2.15% y-o-y while imports were up 10.45%.

Indiabulls Housing reported in-line with estimated net profit while NII beat estimates. Net profit rose 22.1% to Rs 1044 cr.  GNPA, NNPA for the quarter were at 0.77% & 0.58% respectively.

Indusind Bank reported a healthy 21% y-o-y growth in NII. However, the profits grew by a subdued 4.6% during the quarter mainly on account of a provision of Rs 275 crore made on a prudential basis on a standard asset. This provision relates to an advance given to one of the subsidiaries of IL&FS. Of the overall provisioning of Rs 590 crore, around 46% (i.e Rs 275 crore) was on account of this provision towards IL&FS. If not for this provision, the profits would have grown by 36%. Asset quality was stable as gross NPAs reduced to 1.09% in September 2018 as compared to 1.15% in the preceding quarter. Advances grew by 32% YoY aided by a 40% YoY growth in loan disbursements in vehicle finance.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.7%-1% and SGX Nifty is suggesting about 20 points higher start for our market.

In yesterday's report we had said that "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".

Nifty yesterday rose 40 points to finish at 10512 and is set to open right in the vicinity of 10540-10547 gap. Once this gap is taken out, 200-DMA, placed around 10780, would be the next major target as well as resistance to eye. Immediate support on the hourly chart is placed around 10370 below which, 10138, the low made last week, would be the major support to eye.

Infosys and Hero MotoCorp will report their quarterly earnings today.