OIL TANKS ON OPEC STATUS QUO; Q2 GDP IN FOCUS AT HOME

OIL TANKS ON OPEC STATUS QUO; Q2 GDP IN FOCUS AT HOME

WORLD MARKETS

US markets were closed yesterday for the Thanksgiving holiday on Thursday.

Nymex crude nosedived $4.64 or 6.3% to $69.05 a barrel and brent crude plunged $5.2 to $72.6 a barrel to a fresh four-year low under $75 a barrel after OPEC decided not to cut production, despite a huge oversupply in world markets. These are the lowest levels for Nymex crude since May 2010 and for Brent oil since August 2010.

European markets, except a marginally lower FTSE, gained between 0.2%-0.8%. FTSE was pressured by fall in oil and gas stocks on account of plunge in oil prices. German inflation data came in at 0.5% in November, its lowest level since February 2010. Final gross domestic product data for Spain showed growth of 1.6% in the third quarter compared to the same period last year.

In prepared comments for a speech, ECB President Draghi said that the governing council was unanimous in its commitment to use further instruments if needed but added that monetary policy alone cannot do all the heavy lifting.

AT HOME

Benchmark indices ended higher by a fifth of a percent after a choppy expiry session, extending the rising streak to second day. Sensex gained 53 points to settle at 28439 while Nifty finished at 8494, up 18 points. BSE mid-cap and small-cap indices outperformed yet again, rising half a percent each. BSE IT and Power indices gained the most among the sectoral indices, rising 1.1% and 0.8% respectively while Consumer Durable and Realty indices lost 1% and 0.3% respectively.

FIIs net bought stocks and index futures worth Rs 390 cr and 2187 cr respectively but net sold stock futures worth Rs 706 cr. DIIs were net buyers to the tune of Rs 337 cr.

Rupee depreciated 3 paise to close at 61.875/$.

The Reserve Bank of India yesterday issued final guidelines for companies seeking to set up payments banks and small finance banks in a bid to expand banking services to more people and small businesses. Elaborating the eligibility criteria, the central bank has included non-bank prepaid card issuer, mobile companies, telecom companies, business correspondents, PSU companies, real sector cooperatives and supermarket chains as promoters of payments banks, while it has allowed NBFCs, MFIs and local area banks to convert to small banks.

Payment banks can take demand deposits of maximum Rs 1 lakh per customer and can issue ATM/debit cards but not credit cards. Also, they can offer payments, remittance services and can distribute financial products like mutual funds and insurance. However, the RBI has made it clear that payments banks cannot undertake lending activities. Small finance banks are aimed at lending to “unserved and underserved sections including small business units”, the Reserve Bank of India (RBI) said.

OUTLOOK

Today morning, barring a modestly lower Hang Seng, other Asian markets are trading with modest gains and SGX Nifty is suggesting about 35 points higher opening for our market.

After rebounding from our indicated 8430 support on Tuesday, Nifty has moved up to 8494 in last two sessions and is set to open with an upward gap today, giving more credence to the 8430 support and vindicating our view.

After 8520 target was achieved, we have been working with a fresh target of 8640. That continues to be the next level to eye once 8535, the top made on Tuesday is taken out.

India's second quarter GDP data would be released today and is expected to show a growth of 5% as against 5.7% in the previous quarter and 5.2% in the same quarter last month.

8430-8535 IS THE IMMEDIATE RANGE

8430-8535 IS THE IMMEDIATE RANGE

WORLD MARKETS

US indices gained between 0.1%-0.6% yesterday, with the Dow and S & P 500 finishing at records.

Orders for durable goods rose in October, sales of new single-family homes rose for a third straight month last month, and consumer confidence rose to a seven-year high in November.

Among other reports applications for unemployment benefits rose by 21000 to 313000 last week, consumer spending rose 0.2% last month after holding steady in September, Chicago PMI for November came in at 60.8, lower than the expected 63 mark and pending home sales fell 1.1% in October.

Nymex crude fell 40 cents to $73.7 a barrel a day to touch fresh four year low ahead of an OPEC meeting, where media reports suggested that a consensus was reached to not cut output.

European markets, except a 0.6% higher DAX, ended with cuts of upto half a percent.

EU Commission President Jean-Claude Juncker unveiled a 315 billion euro ($375 billion) investment plan in Brussels, with the aim of allowing the European Investment Bank to raise funds from private investors and invest in job-creating projects across Europe.

                                                             

AT HOME

After a negative start, benchmark indices rebounded in the noon trade to end with modest gains. Sensex settled at 28386, up 48 points while Nifty gained 13 points to settle at 8476. BSE mid-cap and small-cap indices outperformed this time, rising 0.6% and 1.1% respectively. BSE Realty index soared 4%, becoming top gainer among the sectoral indices, followed by 1.1% rise in Power index. Teck and Healthcare indices lost 0.4% and 0.3% respectively.

FIIs net bought stocks worth Rs 181 cr but net sold index futures and stock futures worth Rs 114 cr and 593 cr respectively. DIIs were net sellers to the tune of Rs 315 cr.

Rupee appreciated 2 paise to close at 61.845/$.

DLF surged 7.2% after the Urban Development Ministry approved higher ground coverage and floor area ratio in Delhi.

OUTLOOK

Today morning, barring a modestly lower Nikkei, other Asian markets are trading with modest gains and SGX Nifty is suggesting about 10 points higher opening for our market.

After rebounding from the 8430 support on Tuesday, Nifty added 13 points yesterday to end at 8476. 8430 continues to be immediate support on the hourly chart below which 8385 would be the next support where the trendline adjoining recent bottoms on the daily chart is placed. This makes 8430-8385 an important support area a breach of which can taken Nifty to around 8200.

On the way up 8535, the top made on Tuesday, is the immediate resistance above which 8640 would be the next target.

US markets will remain closed today for the Thanksgiving holiday.

CRUDE PLUNGES TO FOUR-YEAR LOW; NIFTY REBOUNDS FROM 8430 SUPPORT

CRUDE PLUNGES TO FOUR-YEAR LOW; NIFTY REBOUNDS FROM 8430 SUPPORT

WORLD MARKETS

US indices ended flat yesterday amidst falling crude and mixed economic data.

Conference Board's index of consumer confidence declined to 88.7 in November from 94.1 the prior month, and the Commerce Department reported GDP climbed at a 3.9% annualized rate in July-September quarter, up from an initial 3.5% estimate. Another report had a gauge of home prices in 20 cities climbing at a reduced pace in September.

Energy stocks were hit by oil prices falling to a four-year low two day ahead of an OPEC meeting. This came after Talks between Saudi Arabia, fellow OPEC member Venezuela and oil powers Russia and Mexico failed to find an agreement to address a growing oil glut yesterday, with no side saying they would lower output despite a collapse in prices. Nymex crude plunged $1.7 to $74.1 a barrel. Brent oil fell $1.4 to $78.3.

European markets ended with gains of upto 0.8% with DAX leading the tally after Germany confirmed its economy grew 0.1% in the third quarter from the second.

AT HOME

After a flattish start, benchmark indices saw a sustained downward move through the session to end lower by about two third of a percent. Sensex slipped 161 points to settle at 28338 while Nifty finished at 8463, down 67 points. BSE mid-cap and small-cap indices plunged 1.4% and 2.3% respectively. Except at 0.6% and 0.2% rise in BSE Oil & Gas and Healthcare indices respectively, all other sectoral indices ended in red with Realty and FMCG indices leading the tally, giving away 3.4% and 2.5% respectively.

FIIs net bought stocks worth Rs 1169 cr but net sold index futures and stock futures worth Rs 639 cr and 307 cr respectively. DIIs were net sellers to the tune of Rs 732 cr.

Rupee appreciated 7 paise to close at 61.87/$.

ITC plunged after the reports that the health ministry has accepted recommendations of an expert panel to ban sale of loose cigarettes and increasing the minimum age for buying cigarettes and other tobacco products from 18 to 21.

OUTLOOK

Today morning, Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 15 points lower opening for our market.

In yesterday's report we had mentioned that immediate support on the hourly chart has moved up to 8430 with the stop loss of which trading longs should be held on to. Nifty, after touching a low of 8430, bounced back fo end at 8463.

8430 continues to be immediate support on the hourly chart below which a trendline adjoining recent bottoms on daily chart presents a support around 8385. This makes 8430-8385 an important support area, a breach of which can take Nifty to around 8200.

NIFTY ACHIEVES 8520 TARGET, HEADED FOR 8640; TRAIL STOP LOSS TO 8430

NIFTY ACHIEVES 8520 TARGET, HEADED FOR 8640; TRAIL STOP LOSS TO 8430

WORLD MARKETS

While Dow ended marginally higher, S & P 500 gained 0.3% and Nasdaq climbed 0.9% yesterday. Retailers gained on hopes of increased holiday sales on the back of lower gasoline prices.

Economic data had the U.S. services sector expanding in November at a slower rate than the prior month.

European markets ended mixed. Overall, there was a rally in in the banking sector, with investors continuing to speculate that more stimulus will be injected in the euro zone economy. A German Ifo business climate index showed a rise to 104.7 in November versus a consensus forecast of 103.0.

Nymex crude fell 1% to $75.8 a barrel.

AT HOME

Benchmark indices extended the record run by gaining six tenth of a percent in yesterday's trade. Sensex surged 165 points to settle at 28500 while Nifty finished at 8530, up 53 points. BSE mid-cap index however gained just 0.1% and the small-cap index lost 0.1%. BSE IT and Metal indices gained the most among the sectoral indices, rising 1.9% and 1.6% respectively. Oil & Gas and Healthcare indices lost 0.7% and 0.4% respectively.

FIIs net bought stocks and index futures worth Rs 407 cr and 50 cr respectively but net sold stock futures worth Rs 157 cr. DIIs were net sellers to the tune of Rs 163 cr.

Rupee depreciated 17 paise to close at 61.93/$.

OUTLOOK

Today morning Asian markets are trading flat to modestly higher and SGX Nifty is suggesting about 10 points higher opening for our market.

Ever since Nifty crossed trendline resistance placed around 8130 on 30th October, we had been working with a target of 8520. Nifty yesterday gained 53 points to end at 8530, achieving the target mentioned above and vindicating our view.

Next target, as mentioned in yesterday's report, is about 8640.

Immediate support on the hourly chart has moved up to 8430, with the stop loss of which trading longs should be held on to.

NIFTY SET TO ACHIEVE 8520 TARGET; WINTER SESSION IN FOCUS

NIFTY SET TO ACHIEVE 8520 TARGET; WINTER SESSION IN FOCUS

WORLD MARKETS

US indices gained between 0.2%-0.6% on Friday, with the Dow and S & P 500 scaling fresh high, on the back of overseas central banks' stimulus efforts and an encouraging domestic outlook.

In a surprise move after the close of the Shanghai exchange on Friday, Peoples Bank of China (PBOC) cut its benchmark interest rates for the first time in more than two years to lower borrowing costs and lift a cooling economy that is on track for its slackest annual growth in 24 years. One-year benchmark lending rate was cut by 40 bps to 5.6% and deposit rate was cut by 25 bps.

ECB President Draghi, speaking at a European banking conference in Frankfurt, reiterated that the central bank stands ready to act fast to combat low inflation. Later in the day, the ECB also announced that it has begun buying asset-backed securities.

European markets soared between 1%-4%.

The Euro fell more than 1% against the U.S. dollar to below $1.24. Nymex crude rose 66 cents to $76.51 a barrel; Gold gained $7 to $1198.

For the week, US indices gained between 0.5%-1.2%. European markets were up between 1.4%-5.2%.

                                                             

AT HOME

After a flattish start, benchmark indices saw a sudden surge in the morning trade to end higher by nearly a percent, marking a fresh record high. Sensex surged 267 points to settle at 28335 while Nifty finished at 8477, up 75 points. BSE mid-cap and small-cap indices however lost 0.1% each. BSE Bankex soared 2.4%, becoming top gainer among the sectoral indices, followed by 1.3% rise in Capital Goods index. IT and Teck indices lost 0.7% and 0.5% respectively.

FIIs net bought stocks and index futures worth Rs 122 cr and 226 cr respectively but net sold stock futures worth Rs 380 cr. DIIs were net buyers to the tune of

Rs 138 cr.

Rupee appreciated 18 paise to close at 61.76/$.

The Supreme Court on Friday cleared the hurdles for 165 big ticket infrastructure projects. These projects were cleared by the National Wildlife Board (NWB) in August and the apex court had imposed a stay on those clearances on the back of a Public Interest Litigation.

For the week, Sensex and Nifty gained 1% each.

OUTLOOK

Today morning, Asian markets are trading with gains ranging from 0.5%-2% and SGX Nifty is suggesting about 50 points higher opening for our market.

As readers would recall, we have been working with a target of 8520 ever since Nifty crossed a trendline resistance placed around 8130 on 30th October.

After bouncing back from our indicated 8340-8350 support area on Thursday, Nifty gained 75 points on Friday to close at 8477 and is set to open higher today, which will achieve the target mentioned above and vindicating our view.

Next target to eye would be about 8640. Immediate support on the hourly chart is placed at 8410 with the stop loss of trading longs should be held on to.

Winter Session of the Parliament will start today. Key bills to watch would be Insurance Bill, the Coal Ordinance and the Constitutional Amendment Bill on GST.

NIFTY REBOUND FROM OUR INDICATED SUPPORT

NIFTY REBOUND FROM OUR INDICATED SUPPORT

WORLD MARKETS

US indices, after starting in red, saw a sustained northward move through the session to end with gains ranging from 0.2%-0.6%, with the Dow and S & P 500 scaling record high, after encouraging domestic data alleviated concerns over continued signs of slowing growth in Europe and China.

Intel surged 4% after the technology firm reported an upbeat outlook for 2015 revenue and raised its dividend.

October existing home sales hit 5.26 mn, beating the estimated 5.16 mn mark. Philadelphia Fed's manufacturing index for November surged to 40.8, more than double the expected 18.3 and the highest since December 1993.  Leading indicators gained 0.9% in October vs expectation of 0.6% gain. Weekly jobless claims stood at 291,000, with continuing claims the lowest since 2000. The Consumer Price Index for October was unchanged. On the flip side, preliminary PMI data from Markit posted a slowdown, with a fall to 54.7 in November from October's final reading of 55.9.

Earlier data showed that Euro zone November flash composite PMI came in at 51.4, below estimates of 52.2 and October's final reading of 52.1. China's flash PMI from HSBC fell to 50.0

European markets, except a 0.1% higher DAX, ended with cuts ranging from 0.3%-1.6%, but off the day lows, to worse-than-expected data from the euro zone and disappointing corporate earnings from the mining sector.

Nymex crude gained $1 to $75.6 a barrel; Gold fell $3 to $1191 an ounce.

                                                             

AT HOME

After falling about a third of a percent in the morning trade, benchmark indices bounced back in the noon trade to end with modest gains. Sensex settled at 28068, up 35 points while Nifty finished at 8402, up 20 points. BSE mid-cap and small-cap indices lost 0.1% and 0.3% respectively. BSE IT and Teck indices gained the most among the sectoral indices, rising 1.3% and 0.8% respectively while Consumer Durable and Realty indices were the top losers, giving away 1.7% and 1.5% respectively.

FIIs net sold stocks and stock futures worth Rs 477 cr and 308 cr respectively but net bought index futures worth Rs 277 cr. DIIs were net buyers to the tune of Rs 102 cr.

Rupee appreciated 2 paise to close at 61.94/$.

Kotak Mahindra Bank announced acquisition of ING Vysya Bank in an all-stock deal. The swap ratio is 725 shares of Kotak Mahindra for every 1000 shares of ING Vysya.

In its biggest acquisition, Tech Mahindra acquired Virginia based Lightbridge Communications Corporation for an enterprise value of approx $240 mn.

OUTLOOK

Today morning, Asian markets are trading mixed and SGX Nifty is suggesting a flattish start for our market.

We have been asking holding on to trading longs with a trailing stop loss ever since 7928 hurdle was crossed on 21st October and for past two sessions we have been working with a support zone of 8340-8350. Nifty, after touching a low of 8353 yesterday, rebounded smartly to end at 8402, vindicating the importance of the above mentioned support.

8340 continues to be immediate support, a breach of which would break the higher-top higher-bottom formation on the daily chart and would pave the way for the further correction till about 8150-8200. 8456, the all-time high made on Wednesday, is the immediate resistance above which 8520 would be the next target.

NIFTY SUFFERS LARGEST FALL IN A MONTH; 8340 CONTINUES TO BE IMMEDIATE SUPPORT

NIFTY SUFFERS LARGEST FALL IN A MONTH; 8340 CONTINUES TO BE IMMEDIATE SUPPORT

WORLD MARKETS

Dow and S & P 500 ended marginally lower after taking into stride minutes from the Fed's last policy meeting. Nasdaq lost 0.6%.

Minutes showed that Fed officials are worried that inflation may stay low "for quite some time" despite the central bank's multi-trillion dollar effort to jump starts the economy. They also discussed how they should go about raising interest rates, and expressed some worry over market volatility during the process.

Housing starts unexpectedly fell in October, down 2.8%, while permits surged to their highest in more than six years. Mortgage applications unexpectedly rose last week.

European markets ended mixed with modest changes. The Bank of England published its policy minutes that revealed the Bank's rate-setting committee was divided on the risks facing the U.K.'s economy.

Earlier, the Bank of Japan kept its massive stimulus program intact, in the wake of data that showed the economy in recession and ahead of snap elections expected next month.

Nymex crude fell 3 cents to $74.6 a barrel; gold fell $3.2 to $1194 an ounce.

AT HOME

It was a day of weakness as benchmark indices, after a positive start, saw a sustained downward move through the session to end lower by half a percent. This was the largest fall for both the indices since 16^th October. Sensex slipped 130 points to settle at 28033 while Nifty finished at 8382, down 44 points. BSE mid-cap and small-cap indices lost 0.6% each. BSE Metal and Power indices lost the most among the sectoral indices, giving away 2.1% and 1.8% respectively while IT and Teck indices gained 0.2% and 0.1% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 72 cr, 106 cr and 66 cr respectively. DIIs were net sellers to the tune of Rs 491 cr.

Rupee depreciated 22 paise to close at 61.96/$, marking a 34-week low.

The Coal Ministry yesterday issued much-awaited draft guidelines for e-auction of 74 coal blocks of the 200 odd coal blocks that had been cancelled by the Supreme Court. Out of these, 32 will be new blocks and 42 blocks are currently operational. The reserve price will be announced by late December and coal blocks could be awarded by March 16.

SEBI yesterday cleared repealing of the two decade old insider trading rules with new prohibition of insider trading (PIT) regulations and amending the delisting regulations.

OUTLOOK

China's November HSBC flash manufacturing PMI has come in at 50, showing a slowing down from October reading of 50.4 and marking a six-month low.

In Japan, exports rose 9.6% in October, above the 4.5% rise forecast and following a 6.9% rise in September. Imports, meanwhile, rose 2.7% from the year-ago period, below expectations of a 3.4% rise and after rising 6.2% in September. This brought the trade deficit to 710 billion yen, better than expectations of a 1.05 trillion yen deficit.

Asian markets are trading mixed with modest changes and SGX Nifty is suggesting a flattish start for our market.

We have been advising holding on to trading long with a trailing stop loss ever since 7928 hurdle was taken out on 21st October. In yesterday’s report we had asked trailing stop loss to 8340. Nifty, after touching a low of 8360, rebounded somewhat to end at 8382.

8340 continues to be immediate support, a breach of which will break the higher-top higher-bottom formation on the daily chart and would pave the way for the further correction till about 8150-8200.

BROADER MARKET OUTPERFORMS WHILE NIFTY TAKES REST; TRAIL STOP LOSS TO 8340

BROADER MARKET OUTPERFORMS WHILE NIFTY TAKES REST; TRAIL STOP LOSS TO 8340

WORLD MARKETS

US indices climbed between 0.2%-0.7% yesterday, lifting the Dow and S & P 500 to record high, on encouraging housing data, positive lead from the European markets and a $66 billion deal by Actavis for Allergan that helped drive gains in the healthcare sector.

NAHB housing market index rose to 58 from 54 in previous month and beat the estimated reading of 55. US producer price index unexpectedly rose 0.2% in October as against expectation of a 0.1% fall.

European markets climbed between 0.6%-1.6% after keenly watched German ZEW indicator of economic sentiment for November came in at 11.5 points, versus -3.6 in October and marking the highest level in 11 months. Also, European auto sales were up for a 14th consecutive month. In UK, consumer prices grew by 1.3% year-on-year, up from September's five-year low of 1.2%.

In Japan, Prime Minster Shinzo Abe said he was delaying next year's sales tax increase by 18 months and calling for an early poll to get a mandate for his reflationary economic policies that how so far failed to yield solid results.

Nymex crude fell 1.4% to $74.61 a barrel; Gold rose 1.2% to $1197 an ounce.

AT HOME

Benchmark indices ended marginally lower after a choppy trading session. Sensex settled at 28163, down 15 points while Nifty lost 5 points to settle at 8426. Broader market however outperformed, as depicted by 0.3% and 0.9% rise in BSE mid-cap and small-cap indices respectively. BSE Capital Goods and Power indices climbed 1.6% and 1.3% respectively, becoming top gainers among the sectoral indices while IT and Realty indices lost 0.8% and 0.6% respectively.

FIIs net sold stocks and index futures worth Rs 102 cr and 164 cr respectively but net bought stock futures worth Rs 180 cr. DIIs were net sellers to the tune of Rs 232 cr.

Rupee depreciated 1 paise to close at 61.74/$.

OUTLOOK

Today morning Asian markets are trading flat to modestly higher and SGX Nifty is suggesting about 10 points higher opening for our market.

Yesterday, Nifty, after touching a fresh record high of 8454, eased to close at 8426. The benchmark is gradually moving towards the 8520 target we had set for it when a tendline resistance on daily chart placed around 8130 was cleared on 30th October.

We have been advising holding on to trading longs with a trailing stop loss and that continues to be the advice. Immediate support on the hourly chart has now moved up to 8340, which should serve as the new stop loss.

SEBI, in its meeting today, is expected to simplify delisting guidelines, stricter norms on insider information and impose restriction on wilful defaulters.

Prime Minister’s Office (PMO) is expected to meet today to discuss sugar sector revival which might include giving subsidy for sugar export and incentive for increasing ethanol production.

DRAGHI OFFSETS JAPANESE WORRIES; STAY LONG WITH THE STOP LOSS OF 8320

DRAGHI OFFSETS JAPANESE WORRIES; STAY LONG WITH THE STOP LOSS OF 8320

WORLD MARKETS

US indices ended mixed yesterday with the Dow and S & P 500 rising 0.1% each while Nasdaq lost 0.4%.

Comments by European Central Bank President Mario Draghi helped offset data that unexpectedly showed Japan's economy in a recession.

Earlier Nikkei fell nearly 3% after data showed that Japan's economy unexpectedly contracted 1.6% in the last quarter instead of the expected 2.1% gain. Later, ECB President Draghi, in his comments to the European Union's Parliament, said the central bank's governing council remained "unanimous in its commitment to using additional unconventional instruments if needed."

US industrial production fell 0.1% in October, compared to expectations for a 0.2% gain. Separate data had manufacturing activity in New York State rising in November, bouncing back from the prior month's read.

European markets gained between 0.3%-1.6% with Spain and Italy leading the tally.

Dollar index, after touching a low of 87.18, reversed to end at 87.99. Nymex crude fell 16 cents to $75.7 a barrel. Gold eased 0.2% to $1183.50 an ounce.

                                                             

AT HOME

After falling nearly half a percent in the morning trade, benchmark indices climbed nearly a percent from the bottom of the day to end higher by half a percent, marking a fresh record high. Sensex gained 131 points to settle at 28178 while Nifty finished at 8431, up 41 points. BSE mid-cap and small-cap indices gained 0.9% and 1.1% respectively. Except a 0.6% and 0.2% cut in BSE Metal and Healthcare indices respectively, all other sectoral indices ended in green with Power and Auto indices leading the tally, putting on 1.5% and 1.4% respectively.

India's trade deficit in October narrowed to USD 13.36 bn from 14.25 bn in previous month as imports fell to 39.45 bn from 43.15 bn and exports fell to 26.09 bn from 28.90 bn.

FIIs net bought stocks worth Rs 656 cr but net sold index futures and stock futures worth Rs 235 cr and 473 cr respectively. DIIs were net sellers to the tune of Rs 248 cr.

Rupee depreciated 1 paise to close at 61.73/$.

OUTLOOK

Today morning, Asian markets are trading mixed with modest changes and SGX Nifty is suggesting a flattish start for our market.

Just to recall, we have been bullish on Nifty ever since lower-top lower-bottom formation was negated on 21st October when 7928 top was crossed. Later, when 8130 hurdle was taken out, we upgraded the target to 8520 and have been asking holding on to trading longs with a trailing stop loss.

8520 continues to be the next target and "hold long positions with a trailing stop loss" continues to be the advise. 8320 is the immediate support on the hourly chart which should serve as that stop loss.

CAUTION ADVISED ON ACCOUNT OF NEGATIVE DIVERGENCE

CAUTION ADVISED ON ACCOUNT OF NEGATIVE DIVERGENCE

WORLD MARKETS                             

US indices ended little changed on Friday.

October retail sales rose 0.3%, just above expectations, along with a jump in consumer confidence in November. Another report had U.S. import prices falling in September the most in two years as the cost of petroleum products fell and a stronger dollar made it cheaper for Americans to buy goods from abroad.

European markets ended flat to modestly higher amidst better-than-expected growth data which showed that the euro zone economy expanded by 0.2% in the third quarter. Germany narrowly missed falling into recession, while French growth beat forecasts. In Greece, revised figures showed that the country had emerged from a six-year recession. Italy, however, remained stuck in a negative growth trend in the last quarter.

A fresh inflation figure for the whole euro zone confirmed that consumer prices ticked higher by 0.4% in October, compared to the same period last year.

Nymex crude climbed $1.6 to $75.8 a barrel; Gold rose $24 to $1586 an ounce.

For the week, Dow and S & P 500 gained 0.4% each while Nasdaq surged 1.2%. Europe was mixed with FTSE and CAC rising around 1.3% and 0.3% respectively. Germany and Italy lost 0.4% and 0.7% respectively.

AT HOME

Benchmark indices ended higher by four tenth of a percent after a choppy trading session, with both the benchmark indices closing at record highs. Sensex gained 106 points to settle at 28047 while Nifty finished at 8390, up 32 points. BSE mid-cap and small-cap indices gained half a percent each. Except a 1.2% and 0.1% cut in BSE Healthcare and FMCG indices respectively, all the BSE sectoral indices ended in green with Metal and Realty indices leading the tally, putting on 2.5% and 2.4% respectively.

FIIs net bought stocks and stock futures worth Rs 646 cr and 98 cr respectively but net sold index futures worth Rs 208 cr. DIIs were net sellers to the tune of Rs 518 cr.

Rupee closed at 61.72/$, depreciating 17 paise compared to previous close.

India's October WPI came in at 1.77%, the lowest since September 2009, against 2.38% on a month-on-month basis.

SBI's asset quality remained stable in the September quarter with Gross NPAs coming in at 4.89% vs 4.9% q-o-q and net NPAs at 2.73% vs 2.66%. Net profit jumped 30% to Rs 3100 cr and NII rose Rs 13274 cr.

BHEL saw net profit tumble nearly 73% to Rs 124.8 cr. on the back of lower revenues from power and industry segments.

Tata Motors reported worse-than-expected 7% dip in consolidated net profit at Rs 3291 cr impacted by higher tax expenses. Revenues rose better-than-expected 6.5% to Rs 60564 cr. Operating profit rose 19.2% to Rs 5671 cr.

ONGC missed street expectation on all counts on account of lower realisatins. Revenues fell 9% to Rs 20361 while net profit was down 10% to Rs 5445 cr.

OUTLOOK

Today morning Nikkei is down nearly 2% after the data showed that Japan's economy shrank 1.6% in the third quarter, defying expectations for a 2.1% growth. Other Asian markets are trading with modest cuts and SGX Nifty is suggesting a marginally lower start for our market.

Nifty, on Thursday, bounced back exactly from the 8320 support mentioned by us and closed at the highest level of 8390 on Friday. However, while the spot Nifty closed at the highest level, RSI on the daily chart made a lower top, which is called "negative divergence" in the technical parlance. This shows that there is less strength in the upmove this time around.

Caution is advised on account of this. The short term view however will turn negative only after higher-top higher-bottom formation on the hourly chart is broken and from that perspective, 8320-8290 region, where multiple supports are placed, would be the key support area to watch. A breach of this support zone can take benchmark to around 8180-8130 where previous tops on daily charts are placed. Existing longs can continue with the stop loss of 8290.

NIFTY REBOUNDS FROM 8320 SUPPORT; KEY EARNINGS IN FOCUS TODAY

NIFTY REBOUNDS FROM 8320 SUPPORT; KEY EARNINGS IN FOCUS TODAY

WORLD MARKETS                             

US indices ended with modest gains with Dow leading the tally with the help of Wal-Mart, countering the fall in energy stocks which were hit by melting oil prices.

Weekly jobless claims climbed 12000 to 290000, above the 280000 forecast but below 300000 for a ninth consecutive week. Separate figures from the Labor Department had hiring at its highest level in more than six years.

Wal-Mart climbed after the company reported a larger-than-expected profit as comparable sales at U.S. stores climbed for the first quarter in seven.

Nymex crude plunged $3 to $74.21 a barrel, its lowest since September 2010 after data showed crude stocks built up at a key U.S. delivery point last week. Brent oil tumbled 3.1% to $77.9 a barrel on concerns that China will see further economic slowdown and as Saudi Arabia kept silent about a possible cut in production.

Earlier data showed that China's economy lost momentum in October, with factory growth dipping and investment growth hitting a near 13-year low, reinforcing expectations of a slower increase in fuel demand.

European markets gained upto half a percent. Germany's consumer price inflation rose 0.8% in October, meeting expectations. France's yearly figure managed to beat expectations with a 0.5% rise while Spain's also saw a beat with a fall of 0.1%. A closely watched ECB survey of economists downgraded their forecasts for both inflation and growth in the euro zone. The survey expects inflation to come in at 1% in 2015 - down from earlier projections of 1.2% - and 1.4% in 2016, down from 1.5%.

AT HOME

Benchmark indices, after a positive start, soon slipped into the red and drifted further lower through the session to end with cuts of about a fourth of a percent, breaking three-day winning streak. Sensex lost 68 points to settle at 27941 while Nifty finished at 8358, down 25 points. BSE mid-cap and small-cap indices lost 0.3% and 0.2% respectively. BSE Oil & Gas and Realty indices lost the most among the sectoral indices, giving away 1.6% and 1.4% respectively. IT and Teck indices gained the most, putting on 1% and 0.7% respectively.

FIIs net bought stocks worth Rs 691 cr but net sold index futures and stock futures worth Rs 395 cr and 202 cr respectively. DIIs were net sellers to the tune of Rs 738 cr.

Rupee depreciated 4 paise to close at 61.55/$.

In order to boost government revenues and contain budget borrowing, government yesterday raised excise duty on petrol and diesel by Rs 1.50 per litre.

OUTLOOK

Today morning Asian markets are trading with negative bias but SGX Nifty is suggesting about 20 points higher opening for our market.

Ever since Nifty crossed 7928 hurdle on the daily chart on 21st October, we have been advising holding onto trading longs with a trailing stop loss.

In yesterday's report we had advised trailing stop loss to 8320. Nifty, after touching a low of 8320, bounced back to end at 8358 and is set to open about 20 points higher today, vindicating the importance of this level.

8320-8290 is an important support zone where multiple bottoms on hourly chart are placed. A breach of this support area can take the benchmark to 8180-8130 region.

India's wholesale price inflation for October would be released today and is expected to show a print of 2.2% as against 2.38% in September.

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

CPI, IIP BEAT ESTIMATES; STAY LONG WITH THE STOP LOSS OF 8320

CPI, IIP BEAT ESTIMATES; STAY LONG WITH THE STOP LOSS OF 8320

WORLD MARKETS                             

US indices ended mixed yesterday with the Dow and S & P 500 ending marginally lower while Nasdaq gained 0.3%.

Utilities were hardest hit among the S&P 500's 10 major sectors after the United States and China reached an accord on carbon reductions to curb climate change.

Wholesale inventories rose 0.3% in September, versus expectations for a 0.2%t gain.

In Europe, while FTSE lost a modest 0.2%, other markets saw steep cuts ranging from 1.5%-3% with banks leading the losers after regulators announced penalties for the alleged manipulation of foreign exchange markets.

U.S. and U.K. regulators hit five banks with fines yesterday—RBS, HSBC, Citibank, JPMorgan Chase and UBS.

Earlier in the day, the Bank of England warned that U.K. inflation was likely to fall below 1% over the next six months, amid "significant risks" to its inflation projections. U.K. monthly unemployment figures showed the jobless rate unchanged at 6% versus a 5.9% forecast.

In the euro zone, fresh industrial production figures for September showed a monthly rise of 0.6% which was lower than market forecasts for a 0.7% uptick.

Dollar index rose to 87.85 from 87.59. Gold fell $4 to $1159 an ounce. Nymex crude fell 1% to $77.2 a barrel, the lowest since October 2011. Brent crude fell $1.5 to $80.2 a barrel, touching a four-year, on the back of rising U.S. output and after Saudi Arabia's oil minister did not make clear whether the kingdom would support a cut in oil production at the OPEC meeting on November 27.

AT HOME

After gaining 0.6%-0.8% in the morning trade, benchmark indices gave away more than half of the gains in the noon trade to end modestly higher, nevertheless setting yet another record. Sensex gained 99 points to settle at 28009 while Nifty finished at 8383, up 21 points. BSE mid-cap and small-cap indices gained 0.5% and 0.2% respectively. BSE Auto index and Bankex gained the most among the sectoral indices, rising 1.2% and 1.1% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 459 cr, 180 cr and 556 cr respectively. DIIs were net sellers to the tune of Rs 559 cr.

Rupee appreciated 4 paise to close at 61.51/$.

India's retail inflation for October dipped to an all-time low of 5.52% from 6.46% in September.

September industrial growth, as measured by IIP, came in at 2.5% vs 0.4% in August, beating estimate of a 2% rise.

Tata Steel reported a 36.8% jump in consolidated net profit at Rs 1254 cr for the July-September quarter led by Rs 1145 cr from land sale. If this amount is removed from profit, earnings missed estimates on every front. Total income fell 2.4% to Rs 35777 cr. Operating profit slipped 1.7% to Rs 3643 cr and margin expanded by 10 bps to 10.2%, which were lower than the estimates of Rs 4057 cr and 11.3% respectively.

OUTLOOK

Today morning Asian markets are trading with gains of upto half a percent and SGX Nifty is suggesting about 15 points higher start for our market.

Nifty is gradually moving towards the 8520 target we had set for it when a trendline breakout occurred on daily chart on 30th October. Yesterday, the benchmark, after touching a high of 8415, eased to close at 8383.

"Stay long with a trailing stop loss" continues to be the advice. Immediate support on the hourly chart has now moved up to 8320, with the stop loss of which trading longs should be held on to.

Sun Pharma, DLF and Hindalco will report their quarterly earnings today.

China will release its fixed asset investment, retail sales and industrial output data for the month of October today.