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.