10440 ABOVE 10340; TRAIL STOP-LOSS TO 10200

10440 ABOVE 10340; TRAIL STOP-LOSS TO 10200

WORLD MARKETS                             

US indices fell half a percent, marking the biggest fall since September 5th, on the back of disappointed earnings releases and rising yields.

Boeing fell 2.8% after two of its businesses saw declines in revenue compared to last year. Chip maker Advanced Micro Devices saw its shares plunge 13.5% on disappointing guidance.

The benchmark 10-year yield hit its highest level since March, trading near 2.43% after New home sales jumped 18.9% in September to their highest level in 10-years and durable goods orders rose 2.2% in September, more than the expected increase of 1%.

European markets fell 0.5%-1%. Basic resources were among the worst performers on earnings. Germany's Ifo Business Climate rose in October to 116.7, from 115.3 in September. The U.K. economy grew by 0.4% in the third quarter of this year, beating market estimates.

AT HOME

Sensex and Nifty surged 1.3% and 0.9% respectively, extending the winning streak to third straight day and hitting a record intraday as well as closing high. Sensex settled at 33042, up 435 points while Nifty finished at 10295, up 88 points. BSE mid-cap index however gained just 0.4% while the Small-cap index in fact ended 0.2% lower. BSE Bankex shot up 4.7%, becoming top gainer among the sectoral indices, followed by 2% higher Industrial index. Consumer Durable and Healthcare indices were the top losers, down 1.3% and 1.1% respectively.

FIIs net bought stocks and stock futures worth Rs 3583 cr and 2009 cr respectively but net sold index futures worth Rs 1098 cr. DIIs were net sellers to the tune of Rs 157 cr.

Rupee appreciated 17 paise to end at 64.90/$.

HUL reported a 16.4% y-o-y rise in standalone net profit at Rs 1276 cr. Volume growth stood at 4%. Revenue rose 6%, EBIDTA rose 19.7% and margin rose by 180 bps.

HCL Technologies reported 0.8% q-o-q growth in consolidated net profit at Rs 2,188 crore. Consolidated rupee revenue and dollar revenue increased 2.3% each quarter-on-quarter to Rs 12,434 crore and USD 1,928 million. EBIT grew by 0.3% to Rs 2,451 crore but margin contracted 40 basis points to 19.7%. The company maintained its full year constant currency revenue growth guidance at 10.5%-12.5% and EBIT margin guidance at 19.5%-20.5%, but raised full year dollar revenue guidance to 12.1%-14.1% from 11.3%-13.3% earlier.

Kotak Mahindra Bank reported 22.3% rise in standalone net profit at Rs 994 cr. NII rose 16% to Rs 2313 cr. Gross NPA ratio improved to 2.47% from 2.58% q-o-q and net NPA ratio stood at 1.26% as against 1.25%.

OUTLOOK

Today morning, Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 20 points lower start for our market.

Readers would recall that we had advised holding on to long positions with the stop-loss of 10223, the low made on the Muhurat trading day, and had said that once 10252 hurdle is taken out, 10380 would be the next target.

Nifty yesterday touched a high of 10340 before closing at 10295, and is set to open lower today.

10340, the top made yesterday, is now the immediate hurdle upon crossover of which 10440 would be the next target to eye.

Immediate support on the hourly chart has now moved up to 10200, with the stop-loss of which, trading longs should be held on to.

European Central Bank will be meeting today to review monetary policy and markets would await details regarding tapering in its asset buying program.