7928-7820 IS THE IMMEDIATE RANGE

7928-7820 IS THE IMMEDIATE RANGE

WORLD MARKETS                             

While Dow gained 0.1%, S & P 500 and Nasdaq climbed 0.9% and 1.4% yesterday as shares of Apple inc surged ahead of its earnings.

IBM slid 7.1% after the technology giant and Dow component posted third-quarter earnings short of estimates.

European markets lost between 0.4%-1.5%, reacting to disappointing corporate earnings. SAP and Philips were prominent losers. German producer prices for September were flat compared to the month before, but showed a yearly drop of 1%. Italy's industrial orders showed a gain of 1.5% on the month.

Nymex crude lost 4 cents to $82.7 a barrel; gold rose 0.5% to $1245 an ounce.

AT HOME

After a big gap up opening, benchmark indices traded in a narrow range through the session and finally ended higher by a percent and quarter. Sensex surged 321 points to settle at 26430 while Nifty finished at 7879, up 100 points. BSE mid-cap and small-cap indices gained 1.1% and 0.5% respectively. Except a 0.8% and 0.3% cut in BSE IT and Teck indices respectively, all the sectoral indices ended in green with Auto and Capital Goods indices leading the tally, putting on 2.1% each.

FIIs net bought stocks, index futures and stock futures worth Rs 1040 cr, 1455 cr and 628 cr respectively. DIIs were net sellers to the tune of Rs 166 cr.

Rupee appreciated 8 paise to end at 61.36/$.

ONGC surged after government raised natural gas prices to $5.6 per unit from $4.2 which will significantly boost the earnings of ONGC and deregulated diesel.

Jindal Steel plunged after CBI registered a case of cheating and corruption against the company.

Government yesterday approved the promulgation of ordinance on deallocated Coal Blocks. The government will put in place a transparent e-auction process for allocation of coal mines to both public and private sector.

OUTLOOK

China's Q3 GDP growth has come in at 7.3%, slightly above the market estimate of 7.2%. September industrial output is up 8%, beating the estimate of 7.5%. September retail sales are up 11.6% slightly below the estimated 11.8%.

Asian markets are trading mixed with changes of upto half a percent. SGX Nifty is suggesting about 20 points higher opening for our market.

In yesterday's report we had reiterated the view that a resumption of the higher-top higher-bottom formation on the daily chart is necessary for turning the near term view decisively bullish and that 7928, the immediate previous top on the daily chart is the important resistance to eye.

7928 continues to be important resistance on the way up. 7856-7820, the gap created by the gap up opening would be the immediate support on the way down.

PNB, HDFC Bank and Cairn will report their quarterly earnings today.