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.