STAY LONG WITH THE STOP LOSS OF 8230

STAY LONG WITH THE STOP LOSS OF 8230

WORLD MARKETS

US indices gained about four tenth of a percent, lifting Dow and S & P 500 to record, after upbeat economic reports in the U.S. and assurances from ECB President Mario Draghi that the ECB would adopt further easing measures, if needed.

US weekly jobless claims fell by 10,000 to 278,000, better than the expected 285,000. The four week average of the claims fell to the lowest since 2000. Another report had productivity rising more than estimated in the third quarter.

Speaking at a news conference after the ECB held its key interest rate at record lows, Draghi assured that ECB officials were unanimous in the view that they would take additional steps if warranted.

European markets ended mixed. German industrial orders came in weaker than expected, substantiating fears that the euro zone's biggest economy is struggling.

Dollar index surged to 88.07 from 87.47. Nymex crude fell 77 cents to $77.9 a barrel and gold eased $3.1 to $1142.6 an ounce.

AT HOME

It turned out to be yet another day of consolidation as benchmark indices ended modestly higher after a rangebound trading session. Sensex gained 55 points to settle at 27916 while Nifty finished at 8338, up 14 points. BSE mid-cap and small-cap indices gained 0.2% and 0.8% respectively. BSE Bankex climbed 1.4%, becoming top gainer among the sectoral indices, followed by 1% rise in Healthcare index. Metal index plunged 3%, becoming top loser, followed by 0.9% cut in Power index.

FIIs net bought stocks and index futures worth Rs 1031 cr and 722 cr respectively but net sold stock futures worth Rs 836 cr. DIIs were net sellers to the tune of Rs 1205 cr.

Rupee ended at 61.41/$, the previous close being 61.40/$.

India's HSBC Services PMI fell to a six-month low of 50 in October from 51.6 in September.

OUTLOOK

Today morning Asian markets are trading with modest gains and SGX Nifty is at 8400, suggesting about 20 points higher opening for our market when compared with Wednesday's close.

We have been working with the target of 8520 ever since Nifty broke out of a trendline resistance on the daily chart placed around 8130. That continues to be next major target to eye.

Immediate support on the hourly chart has moved up to 8230, with the stop loss of which, trading longs should be held on to.

LT will report its quarterly earnings today.

Also on focus would be US October non-farm payroll data which is expected to show an addition of 235000 jobs and unemployment rate remaining unchanged at 5.9%.