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.