FRESH CLOSING HIGH FOR NIFTY; CPI, IIP IN FOCUS TODAY

FRESH CLOSING HIGH FOR NIFTY; CPI, IIP IN FOCUS TODAY

WORLD MARKETS                             

US indices ended marginally higher, with the Dow and S & P 500 scaling yet another record. Nasdaq closed at the highest level since March 2000.

Earlier in the day, Philadelphia Federal Reserve President Charles Plosser expressed concern over low interest rates in the U.S., which he said are unprecedentedly low.

European markets, except a marginally lower Italy, gained between 0.2%-0.6%. In the, U.K. retail sales were flat in October y-o-y.

Dollar index, after touching a high of 88.06, eased to close at 87.59, the previous close being 87.78. Nymex crude rose 54 cents to $77.9 a barrel. Brent curde however fell 0.8% to $81.7 a barrel, the lowest since Oct 19, 2010. Gold gained $3 to $1163 an ounce.

AT HOME

Benchmark indices ended higher by nearly a fifth of a percent after a choppy trading session, marking another record close. Sensex gained 35 points to settle at 27910 while Nifty finished at 8363, up 18 points. BSE mid-cap and small-cap indices gained 0.7% and 0.2% respectively. BSE Realty index and Bankex gained the most among the sectoral indices, rising 1% and 0.7% respectively while Consumer Durable and FMCG indices were the top losers, giving away 1.2% and 0.7% respectively.

FIIs net bought stocks worth Rs 458 cr but net sold index futures and stock futures worth Rs 348 cr and 119 cr respectively. DIIs were net sellers to the tune of Rs 517 cr.

Rupee depreciated 4 paise to close at $61.55.

OUTLOOK

Today morning Nikkei is up more than a percent, touching a fresh 7-year high after media reports suggested that Prime Minister Shinzo Abe will postpone a planned tax increase and call a general election for December. Other Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 15 points higher opening for our market.

Just to reiterate, we had turn our view bullish ever since Nifty broke the lower-top lower-bottom formation on 21st October by crossing 7928. Since then we have been advising holding on to long positions with a trailing stop loss. After Nifty crossed the 8130 hurdle, we have been working with the fresh target of 8520 and that continues to be the level to eye on the way up.

8290 continues to be the immediate support, with the stop loss of which trading longs should be held on to.

India's inflation based on CPI for October would be released today and is expected to ease to 5.63% from 6.46% in September. This would be the lowest level since the inception of the index in January 2012.

September industrial Production, as measured by IIP would also come out today and is expected to show a growth of 2%, up from 0.4% in August.

Tata Steel and BPCL will report their quarterly earnings today.