WORLD EQUITIES EASE ON GROWTH CONCERNS, MIDDLE EAST TENSION

WORLD EQUITIES EASE ON GROWTH CONCERNS, MIDDLE EAST TENSION

WORLD MARKETS                             

US indices fell about half a percent yesterday, extending the losing streak to third straight session on concerns over global growth and conflict in the middle east.

Euro-zone business growth fell to a 2014 low in September, while the HSBC/Markit Flash China PMI rose to 50.5 this month even as factory employment slid to its lowest in more than five years.

The United States and Arab allies bombed Syria, killing dozens of Islamic State militants and members of a separate al Qaeda-tied group. And the Israeli army said it downed a Syrian fighter jet that violated its airspace.

European markets saw deep cuts in the vicinity of a percent and half.

Nymex crude rose 69 cents to $91.6 a barrel; Gold gained $4.1 to $1222 an ounce.

AT HOME

After a flattish start, benchmark indices saw a sustained downward move through the session with accelerated selling pressure in the noon trade and finally ended with deep cuts of more than a percent and half, suffering the largest cut since 8^th July. Sensex tumbled 431 points to settle at 26776 while Nifty finished at 8018, down 129 points. BSE mid-cap and small-cap indices plunged 1.9% and 2.5% respectively. All the BSE sectoral indices ended in red with Realty index leading the tally, giving away 4.9%, followed by 2.6% cut in the Oil & Gas index.

FIIs net sold stocks, index futures and stock futures worth Rs 1185 cr, 316 cr and 440 cr respectively. DIIs were net buyers to the tune of Rs 326 cr.

Rupee fell 13 paise to close at 60.94/$.

OUTLOOK

Today morning Asian markets are trading mixed with modest changes and SGX Nifty is suggesting a marginally lower opening for our market.

In yesterday’s report we had mentioned that 8035 is the immediate support on the hourly chart which should serve as the stop loss for trading longs. Nifty breached this support yesterday and fell to 8008 before closing at 8017.

Next support comes around 7950 where 34 DMA is placed. Immediate resistance on the hourly chart would come around 8100, a crossover of which is required to put bulls back in the dominating position. Traders are advised to keep a stop loss of 8100 in short positions.

The Supreme Court will deliver its verdict in the coal allocation case today.