34-DMA CONTINUES TO BE IMMEDIATE HURDLE; RBI IN FOCUS

34-DMA CONTINUES TO BE IMMEDIATE HURDLE; RBI IN FOCUS

WORLD MARKETS                             

S & P 500 and Nasdaq gained 0.2% each while Dow jumped 0.4%. All three indices ended at fresh record high and Dow extended the winning streak to fifth straight day.

September Auto sales came in better-than-expected.

Treasury yields fell with two-year yield at 1.47% and the benchmark 10-year yield at 2.33%. Gold tumbled to a seven-week low

WTI crude fell 16 cents to $50.42 a barrel.

In Europe Italy was down 0.1%, Spain was flat while FTSE and CAC gained 0.4% and 0.3% respectively. German market was shut.

AT HOME

Benchmark indices gained seven tenth of a percent to extend the winning streak to third straight day. Sensex added 214 points to settle at 31497 while Nifty finished at 9860, up 71 points. BSE mid-cap and small-cap indices gained 0.8% and 0.5% respectively. BSE Consumer Durable index climbed 2.2%, becoming top gainer among the sectoral indices, followed by 1.5% higher Energy index. Power and Capital Goods indices were the top losers, down 0.5% and 0.2% respectively.

FIIs net sold stocks worth Rs 693 cr but net bought index futures and stock futures worth Rs 324 cr and 1745 cr respectively. DIIs were net buyers to the tune of Rs 1552 cr.

Rupee depreciated 22 paise to end at 65.50/$.

Ashok Leyland's September sales rose 27.5% to 15370 units. Escorts reported 34% jump in tractor sales at 10144 units. TVS Motors posted 23% growth at 3.60 lakh units. M & M reported 16% rise in total sales at 53663 units while tractor sales soared 49% to 45563 units. Hero Motocorp sold 7.2 lac units, a growth of 6.8%.

Eight core sectors grew by 4.9% in August, the highest in five months and up from 2.4% in July, on account of robust performance of coal, natural gas and electricity segments

The Nikkei India Manufacturing PMI came in at 51.2 in September, little changed from its August reading.

Government yesterday reduced the basic excise duty on petrol and diesel by Rs 2 per litre with effect from Wednesday.

OUTLOOK

Today morning, Shanghai is shut, Hang Seng and Nikkei are up 0.8% and 0.2% respectively and SGX Nifty is suggesting about 20 points higher start for our market.

20-DMA, placed around 9930, continues to be important immediate resistance, a crossover of which is required for a fresh upmove. 9775, the low made Friday, is the immediate hurdle, below which 9685 would be the major support to eye.

Monetary Policy Committee, led by RBI governor Urjit Patel, is widely expected to leave interest rate unchanged but is expected to cut economic growth forecast and hence the tone of the policy might be dovish.