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.