CPI, IIP BEAT ESTIMATES; STAY LONG WITH THE STOP LOSS OF 8320

CPI, IIP BEAT ESTIMATES; STAY LONG WITH THE STOP LOSS OF 8320

WORLD MARKETS                             

US indices ended mixed yesterday with the Dow and S & P 500 ending marginally lower while Nasdaq gained 0.3%.

Utilities were hardest hit among the S&P 500's 10 major sectors after the United States and China reached an accord on carbon reductions to curb climate change.

Wholesale inventories rose 0.3% in September, versus expectations for a 0.2%t gain.

In Europe, while FTSE lost a modest 0.2%, other markets saw steep cuts ranging from 1.5%-3% with banks leading the losers after regulators announced penalties for the alleged manipulation of foreign exchange markets.

U.S. and U.K. regulators hit five banks with fines yesterday—RBS, HSBC, Citibank, JPMorgan Chase and UBS.

Earlier in the day, the Bank of England warned that U.K. inflation was likely to fall below 1% over the next six months, amid "significant risks" to its inflation projections. U.K. monthly unemployment figures showed the jobless rate unchanged at 6% versus a 5.9% forecast.

In the euro zone, fresh industrial production figures for September showed a monthly rise of 0.6% which was lower than market forecasts for a 0.7% uptick.

Dollar index rose to 87.85 from 87.59. Gold fell $4 to $1159 an ounce. Nymex crude fell 1% to $77.2 a barrel, the lowest since October 2011. Brent crude fell $1.5 to $80.2 a barrel, touching a four-year, on the back of rising U.S. output and after Saudi Arabia's oil minister did not make clear whether the kingdom would support a cut in oil production at the OPEC meeting on November 27.

AT HOME

After gaining 0.6%-0.8% in the morning trade, benchmark indices gave away more than half of the gains in the noon trade to end modestly higher, nevertheless setting yet another record. Sensex gained 99 points to settle at 28009 while Nifty finished at 8383, up 21 points. BSE mid-cap and small-cap indices gained 0.5% and 0.2% respectively. BSE Auto index and Bankex gained the most among the sectoral indices, rising 1.2% and 1.1% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 459 cr, 180 cr and 556 cr respectively. DIIs were net sellers to the tune of Rs 559 cr.

Rupee appreciated 4 paise to close at 61.51/$.

India's retail inflation for October dipped to an all-time low of 5.52% from 6.46% in September.

September industrial growth, as measured by IIP, came in at 2.5% vs 0.4% in August, beating estimate of a 2% rise.

Tata Steel reported a 36.8% jump in consolidated net profit at Rs 1254 cr for the July-September quarter led by Rs 1145 cr from land sale. If this amount is removed from profit, earnings missed estimates on every front. Total income fell 2.4% to Rs 35777 cr. Operating profit slipped 1.7% to Rs 3643 cr and margin expanded by 10 bps to 10.2%, which were lower than the estimates of Rs 4057 cr and 11.3% respectively.

OUTLOOK

Today morning Asian markets are trading with gains of upto half a percent and SGX Nifty is suggesting about 15 points higher start for our market.

Nifty is gradually moving towards the 8520 target we had set for it when a trendline breakout occurred on daily chart on 30th October. Yesterday, the benchmark, after touching a high of 8415, eased to close at 8383.

"Stay long with a trailing stop loss" continues to be the advice. Immediate support on the hourly chart has now moved up to 8320, with the stop loss of which trading longs should be held on to.

Sun Pharma, DLF and Hindalco will report their quarterly earnings today.

China will release its fixed asset investment, retail sales and industrial output data for the month of October today.