NIFTY RESISTED NEAR 8750 HURDLE; KEY EARNINGS IN FOCUS

NIFTY RESISTED NEAR 8750 HURDLE; KEY EARNINGS IN FOCUS

WORLD MARKETS                             

US indices climbed 0.4%-1% yesterday amid a plethora of corporate news, a rising dollar and falling oil prices. 3M and Boeing contributed the most gains.

US oil fell 0.7% to $50.52 a barrel and Brent lost 0.6% to $51.46 after Iran said it wanted to be exempt from an OPEC deal which would cut production. .

IHS Markit manufacturing index's flash read for October rose to 53.2 from a three-month low of 51.5 hit in September.

Dollar index inched up to 98.75 from 98.63.

European markets, except a half a percent lower FTSE, gained 0.4%-1.3%.

AT HOME

Benchmark indices ended with modest gains after a rangebound but choppy trading session. Sensex added 102 points to settle at 28179 while Nifty finished at 8709, up 16 points. BSE mid-cap index lost 0.1% but the small-cap index climbed half a percent. BSE Oil & Gas and Energy indices gained 1.7% and 1.2% respectively, becoming top gainers among the sectoral indices while IT and Teck indices were the top losers, down 1% and 0.9% respectively.

FIIs net sold stocks and stock futures worth Rs 325 cr and 335 cr respectively but net bought index futures worth Rs 155 cr. DIIs were net buyers to the tune of Rs 333 cr.

Rupee appreciated 4 paise to end at 66.85/$.

Idea Cellular disappointed with 58.5% q-o-q fall in net profit at Rs 91.4 cr. Revenue fell 2% to Rs 9300 cr partially led by voice minute decline and rest due to rate fall in mobile voice and data segment. Consolidated EBIDTA slipped 7.6% to Rs 2840 cr and margin contracted by 187 bps to 30.54%.

In a dramatic development, board of Tata Sons yesterday announced removal of Cyrus Mistry, who is at the helm of affairs for almost four years, from the Chairmanship of the group and appointment of Ratan Tata as the interim Chairman. New chairman will be elected in four months.

OUTLOOK

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

While Nifty was rebounding after taking a support in 8540-8500 support zone, we have been pointing out that 8750-8800 is the immediate resistance area where 8750 is where 34-DMA as well as a trendline adjoining recent tops on the daily chart is placed while 8800 is the top made on the surgical strike day.

Yesterday, Nifty, after touching a high of 8737, retreated to end at 8709.

8750-8800 continues to be the immediate resistance area. Immediate support on the hourly chart has moved up to 8660, which should serve as the revised stop-loss for trading longs.

Bharti Airtel, HDFC Bank, Kotak Mahindra Bank, Axis Bank, Dr Reddy, Asian Paints, ZEEL and Adani Ports will report their quarterly earnings today.