NIFTY ACHIEVES DOWNSIDE TARGET OF 8100; TRAIL STOP LOSS TO 8220

NIFTY ACHIEVES DOWNSIDE TARGET OF 8100; TRAIL STOP LOSS TO 8220

WORLD MARKETS                             

Dow and S & P 500 lost 0.1% each while Nasdaq, pressured by biotech and semiconductor stocks, fell 0.4% yesterday.

Healthcare index gained 0.4%, helped by gains of more than 5.5% in Allergan after the firm confirmed that it has been approached by Pfizer and is in talks regarding a potential deal.

In economic news, third-quarter GDP showed an annual rate of 1.5%, slightly missing expectations and below the second-quarter's 3.9 percent. Weekly jobless claims edged higher to 260,000. Pending home sales in September fell 2.3% to its second-lowest reading of 2015.

Dollar index fell about half a percent. Nymex oil rose 12 cents to $46.06 a barrel, slightly extending Wednesday's 6.3% rally. Gold plunged 2.4% to settle at $1147 an ounce.

European markets fell upto 1.1% with Italy and FTSE leading the tally.

AT HOME

Benchmark indices tumbled three fourth of a percent, extending the losing streak to fourth straight day and closing at two-week low. Sensex settled at 26838, down 202 points while Nifty lost 59 points to finish at 8112. BSE mid-cap and small-cap indices lost 0.4% each. Except a 0.4% and 0.04% rise in BSE Consumer Durable and Auto indices respectively, all the sectoral indices ended in red with Bankex, Capital Goods and Power indices leading the tally with cuts of 1.1% each.

FIIs net bought stocks worth Rs 174 cr but net sold index futures and stock futures worth Rs 48 cr and 998 cr respectively. DIIs were net sellers to the tune of Rs 299 cr.

Rupee tumbled 37 points to finish at 65.29/$.

Yes Bank reported better-than-expected 26.4% rise in quarterly net profit at Rs 610 cr, driven by strong net interest income, other income and operating profit.  However, higher provisions and tax cost limited profitability. NII jumped 29.5% to Rs 1108 cr. Gross NPA ratio worsened 15 bps q-o-q to 0.61% while net NPA ratio deteriorated 7 bps to 0.20%.

NTPC reported 40% y-o-y growth in quarterly net profit at Rs 2898 cr, boosted by tax gain and operational performance despite lower other income. Revenue rose 7% to Rs 17898 cr. Operating profit jumped 24.3% to Rs 4030 cr and margin expanded by 310 bps to 22.5%.

Dr Reddy reported better-than-estimated 26% y-o-y growth in net profit at Rs 722 cr, driven by strong operational performance and robust growth in US, Europe and India businesses. Revenue rose 11.2% to Rs 3989 cr. Operating profit shot up 43.2% and margins expanded 430 bps to 28.6%.

OUTLOOK

Today morning Asian markets are trading with cuts of upto 0.7% and SGX Nifty is suggesting about 30 points lower opening for our market.

In our Wednesday's report titled "GO SHORT BELOW 8217 FOR TARGET OF 8100", we had clearly mentioned that a breach of 8217 would confirm a sell on the hourly chart and would open up the space for the further downside till about 8100, where the immediate previous bottom on the daily chart is placed.

The benchmark touched a low of 8098 yesterday before closing at 8112, achieving the target mentioned above and vindicating our view.

8089 to be precise, is the immediate previous bottom on the daily chart and 8040 is where the 34-DMA is placed. This makes 8090-8040 an important support area. Traders can book some profit in short positions as 8040 approaches.

Immediate hurdle on the hourly chart has moved to 8220, which should serve as the revised stop loss for short positions.

ICICI Bank, ITC, LT and Kotak Mahindra Bank will report their quarterly earnings today.

NIFTY PLUNGES TO 8130, VINDICATES OUR VIEW

NIFTY PLUNGES TO 8130, VINDICATES OUR VIEW

WORLD MARKETS                             

US indices soared 1.1%-1.3% yesterday after the Fed kept rates unchanged but signaled that a December rate hike was still on the table.

In September, the Fed cited the potential impact from "recent global economic and financial developments" as a reason to hold off raising rates. But the October statement downplayed concerns about global economic developments.

Gains were led by financials followed by energy sector. Apple jumped 4% following earnings that beat expectations on both the top and bottom line.

Weekly mortgage applications fell 3.5%.

Nymex oil surged 6.3% to $45.94 a barrel, breaking three day losing streak.

Dollar index climbed to 97.60 from 96.98, marking the highest close since August 7. Euro weakened below $1.10. Gold, after touching a high of $1183 before the Fed statement, plunged to $1156, down a percent from the previous close.

European markets climbed 0.9%-1.4%

AT HOME

After a gap down opening, benchmark indices saw a further fall through the session to end with cuts of eight tenth of a percent, extending the losing streak to third straight day. Sensex settled at 27040, down 214 points while Nifty lost 62 points to finish at 8171. BSE mid-cap index lost 0.6% while the small-cap index ended flat. BSE Bankex tumbled 2.5%, becoming top loser among the sectoral indices, followed by 1.5% cut in Power index. Consumer Durable index gained 1.6%, becoming top gainer, followed by 0.4% each gain in IT and Teck indices.

FIIs net sold stocks, index futures and stock futures worth Rs 731 cr, 1281 cr and 1315 cr respectively. DIIs were net buyers to the tune of Rs 160 cr.

Rupee appreciated 5 paise to end at 64.9175/$.

Ambuja Cements posted 36% dip in quarterly net profit at Rs 154 cr. Total income fell 4.2% to Rs 2111 cr. Expected figures were Rs 185 cr and Rs 2180 cr respectively. EBIDTA fell 21.1% to Rs 310 cr while margin stood at 14.7%.

OUTLOOK

Today morning Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 20 points lower opening for our market.

In yesterday's report we had mentioned that "A breach of 8217, the low made yesterday, would confirm a sell on the hourly chart and would open up the space for the further downside till about 8100, where the immediate previous bottom on the daily chart is placed" and had advised going short below 8217.

Nifty broke 8217 in the opening trade itself and plunged all the way to 8132 before closing at 8171, vindicating our view.

8090 is where the immediate previous bottom on the daily chart is placed while 34-DMA is placed around 8030. This makes 8090-8030 an important support area as well as the downside target zone.

Immediate hurdle on the hourly chart is placed at 8250, with the stop loss of which trading shorts should be held on to.

Yes Bank, NTPC, Grasim and Dr Reddy will report their quarterly earnings today.

GO SHORT BELOW 8217 FOR TARGET OF 8100

GO SHORT BELOW 8217 FOR TARGET OF 8100

WORLD MARKETS                             

Dow and S & P 500 lost a fourth of a percent and Nasdaq fell 0.1% yesterday on the back of some disappointing data and ahead of Wednesday's Fed statement.

Data from China showed that industrial profits slipped 0.1% in September after an 8.8% tumble in the previous month.

Back in the US, durable goods orders showed a decline of 1.2% in September, following a negative read in August. Consumer confidence came in at 97.6 for October, missing expectations. The S&P/Case-Shiller 20-City home price index increased 5.1% y-o-y in August, matching expectations.

IBM plunged 4% after disclosing the SEC is conducting an investigation into the IBM's accounting treatment of certain transactions.

Energy stocks eased as Nymex oil fell 78 cents to end at 2-month low of $43.20 a barrel.

European markets lost 0.8%-1.5% with energy and mining shares leading the losses.

AT HOME

After a gap down opening, benchmark indices traded in a narrow range through rest of the session to finally end lower by nearly a third of a percent, extending the losing streak to second straight day. Sensex settled at 27253, down 109 points while Nifty lost 28 points to finish at 8233. BSE mid-cap and small-cap indices however gained 0.2% each. Except a 0.4% and 0.1% rise in BSE Auto and FMCG indices respectively, all the sectoral indices ended in red with Consumer Durable and Capital Goods indices leading the tally, down 1.4% and 0.7% respectively.

FIIs net bought stocks and index futures worth Rs 10 cr and 624 cr respectively but net sold stock futures worth Rs 642 cr. DIIs were net sellers to the tune of Rs 165 cr.

Rupee depreciated 1 paise to end at 64.965/$.

Maruti Suzuki matched expectations on bottomline and topline front while operational performance was ahead of estimates. Net profit shot up 42% y-o-y to Rs 1226 cr while revenue increased 13% to Rs 13934 cr. Operating profit surged 49% to Rs 2269 cr and margin expanded by 390 bps to 16.3%.

Axis Bank met street expectation with net profit rising 19% to Rs 1916 cr. NII grew by 15.2% to Rs 4062 cr. Gross as well as net NPA remained flat sequentially at 1.38% and 0.48% respectively. However, details later revealed that bad loans worth Rs 1850 were sold to Asset Reconstruction Companies and two accounts amounting to Rs 1500 cr were restructured under 5-25 scheme. If these are added to slippages, the figure will come to around Rs 4000 cr as against Rs 1920 cr in the previous quarter.

Lupin disappointed as consolidated net profit plunged 35% to Rs 409 cr on weak operational performance and slow revenue growth that impacted by US and Japan businesses. Lower other income also hit bottomline. Revenue rose 4.7% to Rs 3321 cr. Operating margin declined 610 bps to 20.2%.

Vedanta reported 41% dip in net profit at Rs 974 cr on the back of continued weakness in commodity prices. Net sales fell 16% to Rs 16561 cr. Expected figures were Rs 441 cr and Rs 15800 cr. Operating profit fell 36.3% to Rs 4000 cr and margin contracted by 790 bps to Rs 24.2%. Here the expected figures were Rs 3690 cr and 23%.

OUTLOOK

Today morning, except half a percent higher Nikkei, other Asian markets are trading with cuts of upto half a percent and SGX Nifty is suggesting about 15 points lower opening for our market.

For past some time, we had been advising booking profits in 8320-8380 region considering the fact that 8320 is where 34-week moving average is placed and 8380 is 200-DMA.

The benchmark, after touching a high of 8336 on Monday saw a severe profit booking and has come down to 8233, vindicating our view.

A breach of 8217, the low made yesterday, would confirm a sell on the hourly chart and would open up the space for the further downside till about 8100, where the immediate previous bottom on the daily chart is placed.

Traders can initiate short positions once Nifty sustains below 8217 with the stop loss of 8270, which is the immediate resistance on the hourly chart.

Ambuja Cement will report its quarterly earnings today.

US Fed concludes its two day meeting today where it is expected to keep rates unchanged but leave the door open for the chance of a December rate hike.

NIFTY RETREATS FROM 8320-8380 RESISTANCE ZONE

NIFTY RETREATS FROM 8320-8380 RESISTANCE ZONE

WORLD MARKETS                             

Dow and S & P 500 ended modestly lower while Nasdaq ended marginally higher yesterday as energy shares fell in tandem with oil prices and Apple declined a day before its quarterly results.

Apple fell more than 3% after its supplier Dialog Semiconductor reported preliminary earnings and guidance that missed expectations, sparking concerns that Apple's quarterly earnings may not be as strong as many expect.

September new home sales fell 11.5% to near a one-year low after two straight months of gains.

Nymex oil fell 62 cents or 1.4% at $44 a barrel.

In Europe, Germany and Spain ended marginally higher while other indices ended with cuts in the vicinity of half a percent.

AT HOME

After a gap up opening, benchmark indices saw a sustained downward move through the session to end lower by four tenth of a percent. Sensex settled at 27362, down 109 points while Nifty lost 35 points to finish at 8261. BSE mid-cap and small-cap indices lost 0.5% and 0.7% respectively. BSE Oil & Gas and Consumer Durable indices lost 0.9% each, becoming top losers among the sectoral indices while Power and Capital Goods indices gained 0.4% each.

FIIs net bought stocks and index futures worth Rs 725 cr and 1332 cr respectively but net sold stock futures worth Rs 475 cr. DIIs were net sellers to the tune of Rs 531 cr.

Rupee depreciated 13 paise to end at 64.96/$.

HDFC reported better-than-expected 18.2% rise in September quarter net profit at Rs 1605 cr aided by Rs. 315 cr dividend income from HDFC Bank. Total income rose 12.5% to Rs 7466 cr. NII, however rose at lower-than-expected 6.2% at Rs 2006 cr. Net interest margin improved to 3.95% from 3.8% q-o-q.

Bharti Airtel reported a 2% sequential degrowth in consolidated net profit Rs 1,522.7 crore for July-September quarter. Profit was impacted by slow revenue growth, weak operational performance and slight increase in finance cost but aided by exceptional gain and lower tax cost. Revenue increased by 0.7% to Rs 23,852 crore. Operating profit rose 0.04% and margin was down 20 bps to 34.7%.

OUTLOOK

Today morning Asian markets are trading with cuts of upto half a percent and SGX Nifty is suggesting a flattish start for our market.

Readers would recall that for coupled of days we have been advising booking profit in 8320-8380 region considering the fact that Nifty has runup nearly 10% from the bottom of 7540 made in early September and major resistances in the form of 34-week average and 200 DMA are placed at 8320 and 8380 respectively.

Yesterday, after touching a high of 8336, Nifty tumbled to end at 8260, vindicating our view.

Upon crossover of 8380, next hurdle would come around 8500, where the trendline adjoining recent tops on the weekly chart are placed.

Immediate support on the hourly chart is placed around 8230, a sustained trading below which will generate a sell on the hourly chart and would open up the space for the further downside till about 8100.

Axis Bank, Maruti, Lupin and Vedanta will report their quarterly earnings today.

AFTER ECB, PBOC GIVES EQUITIES A REASON TO FLY; TRAIL STOP LOSS TO 8250

AFTER ECB, PBOC GIVES EQUITIES A REASON TO FLY; TRAIL STOP LOSS TO 8250

WORLD MARKETS                             

Dow and S & P 500 climbed a percent while Nasdaq jumped 2.3% on Friday after the Chinese central bank cut interest rates and after three tech giants posted better-than-expected earnings.

In a bid to jump start growth in its stuttering economy, the People's Bank of China cut interest rates by 25 bps to 4.35%, marking the sixth cut since November. The reserve requirement ratio (RRR) was also cut by 50 bps for all banks, taking the ratio to 17.5% for the biggest lenders while banks that lend to agricultural firms and small companies received another 50 bps reduction to their RRR.

Back in the US, earnings from Alphabet, Amazon and Microsoft beat analysts' expectations.

Nymex oil fell 1.7% to settle at $44.60 a barrel.

Dollar index rose 0.5% and euro held at about $1.1020.

European markets soared 1%-3% with DAX leading the tally. Eurozone composite purchasing manager's index (PMI) came in at 54.0, up from 53.6 in September.

For the week, US indices climbed 2%-3% while European markets gained 1%-7% with DAX and CAC leading the tally.

AT HOME

After a gap up opening, Sensex and Nifty traded in a narrow range through the session and finally ended higher by 0.7% and 0.5% respectively. Sensex settled at 27471, up 183 points while Nifty gained 44 points to finish at 8295. BSE mid-cap and small-cap indices however lost 0.3% each. BSE Bankex and FMCG indices climbed 1.3% and 1.1% respectively, becoming top gainers among the sectoral indices while Capital Goods and Auto indices were the top losers, down 1.6% and 0.7% respectively.

FIIs net bought stocks and index futures worth Rs 229 cr and 1850 cr respectively but net sold stock futures worth Rs 453 cr. DIIs were net sellers to the tune of Rs 156 cr.

Rupee appreciated 30 paise to end at 64.83/$.

For the week, Sensex and Nifty gained 0.9% and 0.7% respectively, extending the winning streak to fourth straight week.

OUTLOOK

Today morning Asian markets are trading with gains of upto a percent and SGX Nifty is suggesting about 60 points higher opening for our market.

Readers would recall that ever since Nifty regained the higher-top higher-bottom formation on the daily chart by crossing 8055 on 5th October, we have been working with a major target of 8380, where the 200-DMA is placed.

But considering the fact that Nifty has runup nearly 10% from the bottom of 7540 made in early Septmeber and another major hurdle in the form of 34-week moving average is placed around 8320, we have been advising booking some profit in trading longs in 8320-8380 region.

Nifty, on Friday, after touching a high of 8328, eased to end at 8295. A gap up opening today would take it closer to 8350.

A decisive crossover of 8380 would open up the space for the further upside till about 8500, where the trendline adjoining recent bottoms on the weekly chart is placed.

After today's gap up opening, immediate support on the hourly chart would have moved up to 8250, which should serve as the stop loss for trading longs.

HDFC and Bharti Airtel will report its quarterly earnings today.

WORLD EQUITIES GET ECB BOOST; NIFTY SET TO TEST 8320-8380 HURDLE

WORLD EQUITIES GET ECB BOOST; NIFTY SET TO TEST 8320-8380 HURDLE

WORLD MARKETS                             

US indices soared 1.6%-1.8% yesterday following hints of new stimulus from the European Central Bank

At the press conference held after the interest rate decision, ECB President Mario Draghi said that the bank's policy would need to be "re-examined" in December and that the governing council would be ready to use all its available instruments within its mandate. This suggests that the quantitative easing program could be extended beyond September 2016.

McDonald's surged 9% after beating expectations on both EPS and revenue front. 3M reported mixed earnings, while Caterpillar missed on both lines.

Weekly jobless claims came in at 259,000, better than the expected 265,000. The September Chicago Fed national activity index came in at -0.37, slightly higher than the -0.39 August reading. September existing home sales rose 4.7% to 5.55 million.

Nymex oil rose 18 cents to $45.38 a barrel.

European markets, except a 0.4% higher FTSE, gained 2%-2.5%. Euro slipped sharply against the dollar after the QE hints, falling 1.6% to $1.11.

AT HOME

Benchmark indices ended marginally lower after a choppy trade, extending the losing streak to second day. Sensex settled at 27288, down 19 points while Nifty lost 10 points to finish at 8252. BSE mid-cap and small-cap indices lost 0.2% and 0.4% respectively. BSE Realty and Capital Goods indices fell 1.8% and 1% respectively, becoming top losers among the sectoral indices while Metal and Teck indices were the top gainers, up 1.2% and 0.6% respectively.

FIIs net sold stocks worth Rs 48 cr but net bought index futures and stock futures worth Rs 149 cr and 54 cr respectively. DIIs were net sellers to the tune of Rs 139 cr.

HDFC Bank matched expectations with September quarter net profit rising 20.5% y-o-y to Rs 2870 cr. NII rose 21% to Rs 6681 cr. Net interest margin fell 10 bps q-o-q to 4.2%. Asset quality improved with gross NPA ratio falling 4 bps q-o-q to 0.91%. Net NPA ratio improved to 0.25% from 0.27%.

Bajaj Auto reported better-than-estimated 58% to Rs 933 cr. Total income grew by 2.3% to Rs 6098 cr. Operating profit surged 17% y-o-y to Rs 1318 cr and margin expanded by 280 bps to 21.6%.

Wipro matched expectations on earnings front but gave a muted guidance. Dollar revenues rose 2.1% q-o-q to 1832 mn. Rupee revenue rose 4% to Rs 12043 cr and net profit rose 2.2% to Rs 2235 cr. For the October-December quarter, the company guided for IT services revenue of USD 1841-1878 mn, a growth of 0.5%-2.5% over September quarter, which was lower than the expectations of 1.5%-3.5% growth.

Idea posted worse-than-expected 13% dip in net profit at Rs 809 cr. Revenue fell 1.2% to Rs 8689 cr. EBIDTA margin fell to 35.2% from 36.7% q-o-q. Both voice and data realisations were under pressure

Cairn India posted 70% dip in net profit at Rs 673 cr. Average price realisation stood at $43.7 per barrel, 52% lower than $91.3 barrel registered in the same quarter last year. Revenue fell 44% to Rs 2242 cr.

OUTLOOK

Today morning Asian markets are trading with gains of 1%-2% and SGX Nifty is suggesting about 75 points higher opening for our market.

In Wednesday's report we had said that Nifty is close to major resistance area of 8320-8380 where 8320 is the 34-week average and 8380 is the 200 DMA and had advised booking some profit in the long positions and holding on to remaining ones with the stop loss of 8200.

The benchmark, after touching a high of 8294 in the morning trade, slipped to 8217 intraday, but recovered towards the end to settle at 8252.

A gap up opening today would take benchmark in the 8320-8380 resistance zone mentioned above. A successful crossover of 8380 will open up the space for the further upside till about 8500, where the trendline adjoining major tops on weekly chart is placed.

Immediate support on the hourly chart would have moved up to 8330 after today's gap up opening, which should serve as the revised stop loss for trading longs.

Asian Paints will report its quarterly earnings today.

8320-8380 MAJOR RESISTANCE AREA; 8200 IMMEDIATE SUPPORT

8320-8380 MAJOR RESISTANCE AREA; 8200 IMMEDIATE SUPPORT

WORLD MARKETS                             

Dow and S & P 500 ended marginally lower while Nasdaq lost half a percent yesterday, digesting a slew of corporate earnings reports and U.S. housing starts data.

IBM tumbled nearly 6% after revenues came in far below consensus.

September housing starts came in well above expectations at 1.206 million.

Nymex oil fell 0.7% to $45.55 a barrel while Brent rose 15 cents.

European markets ended with cuts of upto 1%.

AT HOME

After trading with a positive bias in the first half, benchmark indices slipped in the late noon trade to end modestly lower, breaking three-day winning streak. Sensex settled at 27307, down 58 points while Nifty lost 13 points to finish at 8262. BSE mid-cap and small-cap indices however gained 0.5% and 0.2% respectively. BSE Metal and Oil & Gas indices lost 1.8% and 0.7% respectively, becoming top losers among the sectoral indices whereas Power and IT indices were the top gainers, putting on 1.4% and 1% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 524 cr, 31 cr and 475 cr respectively. DIIs were net sellers to the tune of Rs 355 cr.

Rupee depreciated 26 paise to end at 65.06/$.

Hero Motocorp reported better-than-estimated 1.1% rise in September quarter net profit at Rs 772 cr on better operational performance. Revenue declined 1.1% to Rs 6837 cr. Operating margin expanded by 230 bps to 15.8%.

ACC reported 40% dip in net profit at Rs 115 cr, hit by sales decline as well as subdued prices. Income fell 1% to Rs 2789 cr.  Operating margin fell to 11.2% from 13.5%.

OUTLOOK

Today morning Asian markets are trading with modest gains and SGX Nifty is suggesting a flattish start for our market.

In yesterday's report we had mentioned that 8320-8380 is the next major target as well as the resistance area where 8320 is the 34-week moving average and 8380 is the 200 DMA.

Nifty, after touching a high of 8294, slipped to end at 8262.

Considering the fact that Nifty has risen nearly 10% from the bottom of 7540 made in early September and is close to major resistances as mentioned above, it would not be a bad idea to book some profit in long positions and hold on to remaining ones with the stop loss of 8200, which is the immediate support on the hourly chart.

HDFC Bank, Bajaj Auto, Wipro, Cairn and Idea will report their quarterly earnings today.

NIFTY ENDS AT TWO MONTH HIGH; TRAIL STOP LOSS TO 8170

NIFTY ENDS AT TWO MONTH HIGH; TRAIL STOP LOSS TO 8170

WORLD MARKETS                             

Dow and S & P 500 ended marginally higher while Nasdaq gained 0.4% yesterday as a rebound in biotech counters offset weak quarterly earnings and a tumble in energy prices sparked by China's economic data. 

China's third-quarter GDP grew at 6.9%, slightly above the expected 6.8%, but also its lowest in six years. Industrial production rose 5.%, below the expected 6% increase.

Banking giant Morgan Stanley posted earnings per share 20 cents below estimates before the bell, with revenue also disappointing. NAHB/Wells Fargo Housing Market index came in at its highest in a decade.

Nymex oil fell nearly 3% to $45.89 a barrel. Brent slipped 3.7% to $48.80. Dollar index rose 0.4% with the euro hitting a 10-day low against the dollar. Gold fell $10 to $1172 per ounce.

European markets ended mixed. FTSE and Spain fell while DAX, CAC and Italy gained.

AT HOME

Benchmark indices ended higher by about half a percent, extending the winning streak to third straight day and closing at the fresh high since 21st August. Sensex settled at 27365, up 150 points while Nifty put on 37 points to finish at 8275. BSE mid-cap and small-cap indices gained 0.7% and 0.8% respectively. BSE Realty and Healthcare indices climbed 2.6% and 1.3% respectively, becoming top gainers among the sectoral indices while Capital Goods and Metal indices lost 0.9% and 0.6% respectively.

FIIs net bought stocks and stock futures worth Rs 898 cr and 238 cr respectively but net sold index futures worth Rs 403 cr. DIIs were net sellers to the tune of Rs 246 cr.

Rupee appreciated 1 paise to end at 64.80/$.

HCL Tech missed street estimates for the September quarter earnings. Dollar revenue rose half a percent sequentially to USD 1545 mn. In rupee terms, revenue rose 3.3% to Rs 10097 cr while Net profit dipped 3.2% to Rs 1726 cr.  Margins eased to 19.4% from 20.2%.

OUTLOOK

Today morning Asian markets are trading mixed with modest changes and SGX Nifty is suggesting a flattish start for our market.

After achieving the first upside target of 8225, Nifty has been gradually moving towards the next major target area of 8320-8380 where 8320 is the 34-week moving average and 8380 is the 200-DMA.

Immediate support on the hourly chart has moved up to 8170, with the stop loss of trading longs should be held on to.

Hero Motocorp and ACC will report its quarterly earnings today.

8340-8380 IS THE NEXT TARGET AREA; 8150 IMMEDIATE SUPPORT

8340-8380 IS THE NEXT TARGET AREA; 8150 IMMEDIATE SUPPORT

WORLD MARKETS                             

US indices gained about four tenth of a percent on Friday on the back of surging General Electric shares and upbeat consumer sentiment data.

The preliminary read on October consumer sentiment came in at 92.1. Industrial production declined 0.2% in September, with capacity utilization at 77.5%.

GE rose 3.4% after posting above expected earnings per share.

Nymex oil rose 88 cents or 1.9% to $47.26 a barrel after data showed U.S. rigs falling for the seventh straight week. For the week however, oil fell 4.8%, its worst since Aug. 21.

European markets gained 0.4%-1.3%. European car sales rose 9.8% year-on-year in September helped by demand for German vehicles.

Earlier Nikkei rose 1.1% and Shanghai gained 1.6%.

For the week US indices gained 0.8%-1.2%.  European markets ended mixed. FTSE and Spain lost 0.6% and 0.8% respectively while DAX, CAC and Italy saw modest gains.

AT HOME

After trading in a narrow range for better part of the day, benchmark indices spiked up in the late noon trade to end higher by about three fourth of a percent to close at the highest level since 21st August. Sensex settled at 27215, up 204 points while Nifty rose 59 points to finish at 8238. BSE Capital Goods index and Bankex gained the most among the sectoral indices, rising 1.8% and 1.3% respectively whereas Realty index tumbled 1.4%, becoming top loser, followed by 0.4% cut in Metal and Consumer Durable indices.

FIIs net bought stocks worth Rs 437 cr but net sold index futures and stock futures worth Rs 831 cr and 458 cr respectively. DIIs were net buyers to the tune of Rs 102 cr.

Rupee appreciated 1 paise to end at 64.805/$.

For the week, Sensex and Nifty gained 0.5% and 0.6% respectively, extending the winning streak to third straight week.

Reliance Industries reported better-than-estimated 3.8% q-o-q rise in September quarter net profit at Rs 6561 cr driven by strong operational performance in refining business. Gross refining margin (GRM) was the highest in last seven years, coming in at USD 10.6 a barrel against USD 10.4 in the preceding quarter and ahead of estimates of USD 9-9.5 a barrel.

OUTLOOK

China’s third quarter GDP growth has come in at 6.9% versus 7% in Q2 and expected figure of 6.8%. September Industrial Output is up 5.7% versus expectation of 6%.

Asian markets are trading mixed and SGX Nifty is suggesting about 15 points lower opening for our market.

Readers would recall that ever since Nifty regained higher-top higher-bottom formation by crossing 8055 on 5th October, we have been working with intermediate target of 8225 followed by ultimate target of around 8380.

The benchmark, after achieving the first target on 9th October, consolidated for a few days and ended last week at 8238.

8340-8380, where the 34-week moving average and 200-DMA are placed, continues to be next target area. Immediate support on the hourly chart has moved up to 8150, with the stop loss of which trading longs can be held on to.

HCL Tech and Ultratech Cement will report their quarterly earnings today.

AFTER HOLDING ON TO 8100 SUPPORT, NIFTY SET TO CHALLENGE 8225 HURDLE

AFTER HOLDING ON TO 8100 SUPPORT, NIFTY SET TO CHALLENGE 8225 HURDLE

WORLD MARKETS                             

US indices soared 1.3%-1.8% yesterday as financial stocks rallied and mostly soft economic data supported the case for a rate hike delay.

Goldman Sachs and Boeing contributed the most to gains.

U.S. CPI declined 0.2% in September, matching expectations. Ex-food and energy, the price index rose 0.2% for the month, following a 0.1% rise in August. Weekly jobless claims declined to 255,000, falling back to a 42-year low. October Empire State index came in at negative 11.36 as against negative 14.67 in September. The Philly Fed index stood at negative 4.5 for October.

Nymex oil fell 26 cents or 0.6% to $46.38 a barrel. Gold rose $8 to $1188 an ounce.

European markets gained 0.6%-1.7%

Earlier Nikkei and Shanghai gained 1.2% and 2.3%.

AT HOME

Benchmark indices climbed nine tenth of a percent in today's trade, breaking the three-day losing streak. Sensex settled at 27010, up 230 points while Nifty rose 72 points to finish at 8180. BSE mid-cap and small-cap indices gained 0.8% and 0.5% respectively. Except a 0.1% cut in BSE IT index, all the BSE sectoral indices ended in green with Auto and Oil & Gas indices leading the tally, putting on 2.3% and 1.5% respectively.

FIIs net bought stocks worth Rs 292 cr but net sold index futures and stock futures worth Rs 105 cr and 196 cr respectively. DIIs were net buyers to the tune of Rs 102 cr.

Rupee appreciated 22 paise to end at 64.82/$.

Tata Motors soared 8% after decent growth in Jaguar Land Rover (JLR) September sales.

India's exports fell for the tenth consecutive month in September by falling 24.33% to $21.84 bn. Imports fell 25.4% to $32.32 bn. Trade deficit narrowed to $10.48 bn from $12.5 bn in August as gold and oil imports declined.

Oil marketing companies hiked diesel price by 95 paise per liter while keeping petrol price unchanged.

OUTLOOK

Today morning Asian markets are trading with gains of 1%-1.5% and SGX Nifty is suggesting about 30 points higher opening for our market.

For past couple of sessions, we have been telling about 8100-8225 range. Nifty has been taking support in the vicinity of 8100 while region in the vicinity of 8225 is acting as the supply zone.

After a positive start today, Nifty will be closer to the higher level of this range. A decisive crossover of 8225 will open up the space for the further upside till about 8340-8380 where 34 week average and 200 DMA are placed.

8100 continues to be immediate support, with the stop loss of which trading longs can be held on to.

Reliance Industries will report its quarterly earnings today. Net profit is expected to fall to Rs 6000 cr from Rs 6318 in the April-June quarter mainly on the back of fall in Gross refining margin, which is expected to ease to $9-9.5 from $10.4. 

NIFTY EXTENDS CONSOLIDATION; 8100 CONTINUES TO BE IMMEDIATE SUPPORT

NIFTY EXTENDS CONSOLIDATION; 8100 CONTINUES TO BE IMMEDIATE SUPPORT

WORLD MARKETS                             

US indices fell 0.3%-0.9%, digesting mixed results from the banking sector as well as the release of lower-than-expected sales forecasts

U.S. retail sales barely rose in September while producer prices posted their biggest decline in 8 months.

Wal-Mart plunged 10% after the company said it expects sales to be flat in fiscal year 2016. Boeing tumbled 4.3% amid concerns about aircraft demand following Delta comments in its earnings call yesterday about a "huge bubble in excess wide-body airplanes,". Intel gained 2.4% following earnings that beat on both the top and bottom line.

Following JPMorgan's disappointing results late Tuesday, Bank of America reported earnings that beat analysts' expectations.

US 10-year treasury yield fell to 1.98%, falling below 2% for the first time since Oct. 5. Dollar index fell nearly a percent with the euro above $1.14 and the yen at 118.77 against the dollar. Gold climbed $14 to $1180 an ounce. Nymex oil settled down 2 cents at $46.64 a barrel.

Earlier data showed that China's consumer price index (CPI) rose 1.6% in September from a year earlier, against forecasts of a 1.8% rise and following August's 2% gain.

European markets gave away 0.7%-1.2%

AT HOME

Benchmark indices ended lower by a fourth of a percent after a rangebound trade, extending the losing streak to third straight day. Sensex settled at 26780, down 67 points while Nifty lost 24 points to finish at 8108. BSE mid-cap index lost 0.3% while the small-cap index gained 0.4%. BSE IT and Teck indices lost 1.3% and 1.2% respectively, becoming top losers among the sectoral indices whereas Consumer Durable and Healthcare indices gained 1.4% and 0.4% respectively.

FIIs net bought stocks worth Rs 122 cr but net sold index futures and stock futures worth Rs 873 cr and 688 cr respectively. DIIs were net sellers to the tune of Rs 208 cr.

Rupee appreciated 15 paise to end at 65.04/$.

India's wholesale price inflation for September came in at -4.54%, improving somewhat from -4.95% in August.

HUL reported 2.6% y-o-y dip in September quarter net profit at Rs 962 cr. Revenue rose 4.1% to Rs 7955 cr. Domestic consumer business grew at 5%, with 7% underlying volume growth.

Zee Entertainment Ltd posted 7.3% y-o-y growth in September quarter net profit at Rs 246.3 cr. Consolidated revenue rose 24% to Rs 1385 cr. Advertising revenue grew at a solid 35% at Rs 843 cr. Subscription revenue rose 13% to Rs 479 cr.

OUTLOOK

Today morning, Asian markets, except a marginally lower Shanghai, are trading with gains of 0.5%-1.5% and SGX Nifty is suggesting about 30 points higher opening for our market.

As we have been mentioning for couple of days, 8100 continues to be immediate support, a sustained trading below which will generate a sell on the hourly chart. On the way up, 8225 continues to be immediate hurdle, a sustained trading above which is required for a fresh upmove.

8100-8225 CONTINUES TO BE IMMEDIATE RANGE

8100-8225 CONTINUES TO BE IMMEDIATE RANGE

WORLD MARKETS                             

US indices lost 0.3%-0.9% yesterday, with the Dow breaking seven-day winning streak, weighing slight declines in oil prices and more indications of slowdown in China's economy.

China's dollar-denominated imports plunged by a worse-than-expected 20.4% in September from a year earlier, while exports slipped 3.7%, producing a trade surplus of $60.34 billion.

Johnson & Johnson reported earnings that beat but missed on revenue.

Nymex oil fell 44 cents or 0.9% to $46.66 a barrel. Brent declined to below $49 a barrel. The International Energy Agency reported that global oil demand growth would slow in 2016 to 1.2 mn barrels per day from 1.8 million in 2015.

European markets fell 0.2%-1% with DAX leading the tally. Basic resources sector was the worst hit with Glencore falling 2.5%. The world's two biggest beer brewers - Anheuser-Busch InBev and SABMiller - announced that Belgium's AB InBev will buy the U.K.-listed SABMiller for £44 per share ($67.6) in cash.

AT HOME

After falling nearly two third of a percent, benchmark indices rebounded in last hour or so to end just modestly lower. Sensex settled at 26847, down 58 points while Nifty lost 12 points to end at 8132. BSE mid-cap index ended flat while the small-cap index gained 0.4%. BSE IT and Teck indices were the top losers among the sectoral indices, falling 1% and 0.9% respectively while Realty index soared 1.3%, becoming top gainer, followed by 0.3% rise in Power index.

FIIs net bought stocks worth Rs 273 cr but net sold index futures and stock futures worth Rs 387 cr and 331 cr respectively. DIIs were net sellers to the tune of Rs 274 cr.

Rupee tumbled 44 paise to end at 65.18/$.

TCS reported in-line with estimated profit and volume growth figures for the quarter ended September but revenue missed forecast for the fifth consecutive quarter. Dollar revenue rose 3% to USD 4156 mn and 3.9% in constant currency. Rupee revenue grew by 5.8% to Rs 27165 cr and net profit rose 6.1% to Rs 6055 cr. Volume growth was 4.9%. EBIDTA margin expanded by 80 bps to 27.1%.

OUTLOOK

China's September CPI has come in at 1.6% vs estimate of 1.8% and August's 2% reading. PPI fell 5.9%, unchanged from previous month and in-line with estimate.

Asian markets are trading with cuts of 0.5%-1.5% with Nikkei leading the losses and SGX Nifty is suggesting about 25 points lower opening for our market.

In yesterday's report we had mentioned that "8100 continues to be immediate support, a sustained trading below which will generate a sell on the hourly chart".

The benchmark, after touching a low of 8089, recovered to end at 8132.

After today's lower opening, Nifty would again be close to 8100 support, upon sustained trading below which trading longs should be cut. 7900, where 34-DMA is placed, would be the next meaningful target if 8100 is violated decisively.

On the other hand a sustained trading above 8225 is required for the fresh upmove.

WPI for September would be released today and is expected to show a reading of -4.4% versus -4.95% in August.

HUL and ZEEL will report their quarterly earnings today.

NIFTY STRUGGLES TO CROSS 8225 HURDLE; 8100 CONTINUES TO BE IMMEDIATE SUPPORT

NIFTY STRUGGLES TO CROSS 8225 HURDLE; 8100 CONTINUES TO BE IMMEDIATE SUPPORT

WORLD MARKETS                             

US indices ended with gains of upto 0.3% yesterday as gains in utility counters offset a retreat in energy plays.

Nymex oil fell $2.53 or 5% to $47.10 a barrel, giving back more than half of last week's rally of nearly 9%. Gold rose $9 to $1164 an ounce.

Dell announced a $67 billion cash and stock deal with MSD Partners and Silver Lake to buy cloud computing firm EMC.

European markets, except a 0.2% higher DAX, fell 0.3%-0.8%. Glencore sank over 6% after the London-listed mining giant said it planned to sell copper mines as part of efforts to slash its debt pile.

Earlier, the Shanghai Composite surged more than 3% and the Hang Seng closed up 1.2% amid expectations that Beijing would roll out further stimulus measures to ward off a sharper slowdown.

AT HOME

After gaining more than half a percent in the opening trade, benchmark indices tumbled more than a percent from the top of the day to end lower by about six tenth of a percent. Sensex settled at 26904, down 175 points while Nifty lost 46 points to finish at 8144. BSE mid-cap index however gained 0.2% and the small-cap index ended flat. BSE IT and Teck indices plunged 2% and 1.8% respectively, becoming top losers among the sectoral indices while Metal and Power indices gained 1.2% and 0.9% respectively.

Infosys stock tumbled 3.8% despite reporting better-than-estimated quarterly numbers as the company did not raise full year revenue growth guidance and CFO Rajiv Bansal announced a surprise resignation. A dip in volume growth, a slight uptick in attrition rate and an ESOP that could lead to a 2% equity dilution going forward also weighed on the sentiment. Dollar revenue for the quarter surged 6%-the steepest in the last 16 quarter-to USD 2.392 bn. Net profit rose 12.1% to Rs 3398 cr and rupee revenues grew 8.9% to Rs 15635 cr. Operating margin improved by 153 bps to 25.53%. The company maintained its constant currency revenue growth of 10-12% for the full year but tweaked its dollar revenue guidance to 6.9-8.4% from 7.2%-9.2%.

Bank OF Baroda fell 3.4% after the Central Bureau of Investigation (CBI) raided 50 locations in connection with alleged irregularities at one of its Delhi branch. Reports said the raids were in connection with suspected money laundering involving around Rs 6,000 crore.

FIIs net bought stocks and index futures worth Rs 318 cr and 743 cr respectively but net sold stock futures worth Rs 65 cr. DIIs were net sellers to the tune of Rs 175 cr.

Rupee depreciated 1 paise to end at 64.75/$.

The Consumer Price Inflation for the month of September came in at 4.41%, up from 3.66% in August but lower than the estimated figure of 4.49%.

Index of industrial production (IIP) for August came in near 3-year high at 6.4% versus 4.2% seen in July.

OUTLOOK

Today morning Asian markets are trading flat to modestly lower and SGX Nifty is suggesting a flattish start for our market.

In yesterday's report we had mentioned that having achieved the 8225 target, next target for Nifty is 8350-8380 and had advised holding on to trading longs with the stop loss of 8100.

The benchmark, after touching a high of 8244 in the opening trade, slipped to end at 8144.

8100 continues to be immediate support, a sustained trading below which will generate a sell on the hourly chart. On the way up a sustained trading above 8225 can take the benchmark to 8350-8380 region.

Traders are advised to hold existing longs with the stop loss of 8100.

TCS will report its quarterly earnings today.