8220, 8400 CONTINUE TO BE UPSIDE TARGETS; 8000 IMMEDIATE SUPPORT

8220, 8400 CONTINUE TO BE UPSIDE TARGETS; 8000 IMMEDIATE SUPPORT

WORLD MARKETS                             

Dow ended marginally higher while S & P 500 and Nasdaq lost 0.4% and 0.7% yesterday with the S & P 500 snapping a five day winning streak. Energy and material shares were the greatest advancers in the S & P 500 while healthcare was the greatest laggard.

US August trade deficit came in at $48.3 billion, the widest in five months.

The International Monetary Fund trimmed its global growth forecast for 2015 from 3.3% to 3.1%, citing weaker growth prospects for emerging economies.

Nymex oil surged $2.27 or 5% to $48.53 a barrel after Russia said it was willing to meet with other big oil producers, including the Organization of Petroleum Exporting Countries (OPEC), to discuss the situation in global oil markets and the U.S. Energy Information Administration forecasted that U.S. crude output would slow to 8.9 million barrels per day next year from an estimated 9.2 million in 2015. Brent too rose more than 4% to trade above $51.40. Gold rose $9 to $1146 an ounce.

European markets gained 0.4%-1%, with miners and auto stocks leading the way. Glencore bounced back after the group issued a factsheet on its finances in an effort to soothe investor fears on its debt levels.

AT HOME

Benchmark indices ended higher by four tenth of a percent after a choppy session, extending the winning streak to fifth straight day. Sensex settled at 26933, up 147 points while Nifty rose 34 points to finish at 8153. BSE mid-cap and small-cap indices gained 0.3% and 0.7% respectively. BSE Consumer Durable index soared 4.3%, becoming top gainer among the sectoral indices, followed by 2.4% rise in FMCG index. IT and Teck indices lost 1.2% and 0.8% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 480 cr, 251 cr and 462 cr respectively. DIIs were net sellers to the tune of Rs 425 cr.

Rupee depreciated 12 paise to end at 65.405/$.

India's Nikkei Services PMI fell to 51.3 in September from 51.8 in August. The composite PMI fell to 51.5 from 52.6.

IMF lowered India's 2015-16 growth forecast from 7.5% to 7.3%. For the next year, it expects a growth of 7.5%. China is expected to grow 6.8% this year, followed by 6.3% in the next.

OUTLOOK

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

In yesterday's report we had mentioned that "while 8400 continues to be major upside target to eye, 8220, where the 20-week moving average as well as a gap on the daily chart is placed, is the immediate target to eye" and had asked holding on to trading longs with the stop loss of 8000.

The benchmark, after touching a high of 8181 in the opening trade, eased to end at 8153.

8220 continues to be immediate target above which 8400 would be the next major level to eye. 8000 continues to be immediate support with the stop loss of which trading longs should be held on to.