11695-11490 CONTINUES TO BE IMMEDIATE RANGE

11695-11490 CONTINUES TO BE IMMEDIATE RANGE

WORLD MARKETS

Dow fell 0.1% while S & P 500 and Nasdaq rose 0.2% and 0.8% respectively on the back of fall in 3M and rise in Microsoft shares tracking quarterly earnings.

3M pulled back 4.1% after it cut its full-year earnings forecast, overshadowing stronger-than-expected results for the quarter. Microsoft rose 2% as results beat estimates.

Durable goods orders fell 1.1% in September, notching their largest drop in four months.

European Central Bank kept its policy rates unchanged and kept its forward guidance that suggested the bank’s main interest rates will remain at their current or lower levels until there’s strong evidence of a pick-up in prices.

European markets gained 0.6%-0.9%. The IHS Markit October flash services PMI estimate for October came in at 51.8, slightly below the expected 51.9, while manufacturing PMI came in at 45.7 against a forecast of 46.0. October’s composite PMI flash estimate was 50.2, up from 50.1 in September but lower than the 50.3 forecast.

Brent crude gained 55 cents to settle at $61.74 while WTI rose 26 cents to settle at $56.23 a barrel, extending the winning streak to third straight day.

AT HOME

After rising nearly two third of a percent in the initial trade, Sensex and Nifty tumbled around eight tenth of a percent from the top of the day to end lower by 0.1% and  0.2% respectively. Sensex settled at 39020, down 38 points while Nifty lost 22 points to finish at 11582. BSE mid-cap and small-cap indices fell 0.4% and 0.1% respectively. BSE Power index and Bankex slipped 1.2% each, becoming top losers among the sectoral indices while Energy and Realty indices were the top gainers, up 1.6% and 1.1% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 73 cr, 327 cr and 369 cr respectively. DIIs were net sellers to the tune of Rs 739 cr.

Rupee depreciated 10 paise to end at 71.01/$.

Maruti reported a weak performance despite lower tax expense and higher other income.

It posted 39.4% y-o-y dip in net profit at Rs 1358.6 cr. Revenue fell 24.3% to Rs 16985 cr, EBITDA was down 53.2% at Rs 1606 cr and margin contracted 580 bps to 9.5%.

ITC met street expectations on most counts. Net profit surged 36.2% y-o-y to Rs 4023 cr. Revenue rose 5.3% to Rs 11871 cr, EBITDA was up 8.5% at Rs 4562 cr and margins expanded 110 bps to 38.4%. Cigarette volume growth stood at 3%.

OUTLOOK

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

After achieving 11695 target last Friday, Nifty is in a consolidation mode. For past couple of days we have been mentioning that 11695 continues to be important immediate hurdle, a decisive crossover of which is required for a fresh upmove. We have also been saying that 11490 is the immediate support on the hourly chart , with the stop-loss of which, existing longs can be held on to.

Yesterday, the benchmark, after touching a high of 11680, slipped to 11534 before closing at 11582.

Just to reiterate, 11695 continues to be important immediate hurdle, a decisive crossover of which is required for a fresh upmove. If that happens, 11772-11798, the gap created by a gap down opening on 8th July, would be the next target.

Meanwhile, 11490 continues to be immediate support on the hourly chart , with the stop-loss of which, existing longs can be held on to.

SBI, Tata Motors and Marico will report their quarterly earnings today.