- Baltic Dry Index is trading 0.9% up from previous days close.
- SGX Nifty Future is trading 47 pts up at 4826.
- Crude is trading at $ 79.91/bbl up 4 cents from previous close.
- Inflation for wk-ended Oct 17 at 1.51% Vs 1.21% (WoW)
- Q1 GDP at 6.1% Vs 7.8% (YoY); manufacturing growth at 3.4% Vs 5.5% (YoY); construction sector growth at 7.1% Vs 8.4% (YoY); farm sector growth at 2.4% Vs 3%
- Aug IIP at 10.4% Vs 6.8% (MoM), 1.69% (YoY); Cap goods at 8.3% Vs 0.9% (YoY); Basic goods at 10% Vs 3.9% (YoY); April- Aug Ind growth at 5.8% Vs 4.8% (YoY); Electricity at 10.6% Vs 0.8% (YoY); Mining at 12.9% Vs 2.8% (YoY); Mfg output at 10.2%Company
- Indiabulls Power to list today, issue price Rs 45;
- Pratibha Industries bags Rs 150 Cr BOT order
- Zee Entertainment board approves swap ratio of 19:4 for Zee News GECs; 4 shares of Zee Ent for every 19 of Zee News; Zee Ent says appointed date for Zee News GEC merger with company on Jan 1
- Govt approves follow on public offer for REC; will make a fresh issue of 15% of its existing paid up capital. issue is likely to hit the markets within this fiscal
- Balrampur Chini promoter is likely to sell majority stake in the company.
- GIPCL :- Traders can Buy GIPCL with stop loss of 106 and target of 118.
- RANBAXY :- Ranbaxy has seems to have completed its correction therefore traders can buy the stock with stop loss of 380 and target of 412.
Winning streak for monthly gains in derivatives was broken as Nifty settled at 4750, down 234 points from September expiry. Market has now lost more than 400 points from its Muhurat session high. Global situation has also turned for worse and that too is supporting a declining trend. Selling was spread across sectors as expiry pressure was felt on almost all the segments of market. BOI was the worst performer as it dropped by more than 12% on disappointing numbers. ADAG pack also suffered further drop in prices. Major declining counters were Reliance Media, Tata Communications, EKC, IOB, Noida Toll, RNRL, IBReal, GMRInfra, Educomp, DLF, BRFL, Rcom, MLL and Tata Chem. A few that managed to weather the storm were Orchid, Lupin, BOB, M&M, FSL, Crompton, Ranbaxy, Voltas and HPCL. Nifty has closed just around 4750, almost at the lowest point of the day. It has been declining for past 8-9 sessions and most of the momentum indicators have entered highly oversold territory. Some rebound cannot be ruled out from around current levels but the fact that RSI readings have fallen to such lows suggests that market might drift further downwards after a technical rebound. Daily charts show some support around 4750 while weekly charts have support around 4680-4700, so a rebound is likely from either of these levels.
RIL has come out with its results and they are more or less on expected lines. Like Nifty, RIL is also placed just around its supports at 1970-1980. Sustained trades below 1970 could take it lower to around 1885-1890. Banking counters are also cracking and could drift lower in coming days. On the positive side, one can expect some upside in counters like LITL, Dabur, Voltas and Power Grid.
Nifty faces resistance around 4830 and then around 4870-80.
- RELIANCE :- BUY ABOVE 2045 TARGET 2082 THEN 2109 SL 1999
- JINDAL STEEL :- BUY ABOVE 705 TARGET 714 THEN 732 SL 689
- L&T :- BUY ABOVE 1608 TARGET 1620 THEN 1634/1646 SL 1589
- HDFC :- Traders can short HDFC below 2630 with stop loss of 2750 and target of 2560.
- INFOSYS :- Traders can sell Infosys with stop loss of 2290 and target of 2170.
- MARUTI :- 1416.10 Maruti has broken down its neckline at 1457. Traders are advised to short Maruti with stop loss of 1550 and target of 1200.
It was a volatile day for the markets as Nifty struggled to sustain above 4800. It slipped below 4800 during the day but late recovery in some heavyweights helped it to claw its way back above 4800. Undertone remained bearish as declining stocks remained in majority. On the positive side, certain stocks did manage to hold their ground and found good amount of buying. This list includes Crompton greaves that came out with encouraging numbers, Balrampur Chini, PTC and Patni. Sesa Goa edged higher on short covering, as did somebanking counters like Syndicate Bank, OBC, Allahabad Bank, BOB and Union Bank. Wipro continued to find buyers as it made a new high. Other gainers were JSPL, Aban, Bajaj Hind, Sun TV, Ranbaxy, HCC and HDIL. EKC was a big loser amongst the F&O stocks as it plunged by over 16%. Other major losers were Lupin, TV18, Educomp, Rolta, BEML, MLL, Maruti, Tata steel and Suzlon. Nifty managed to stay above 4800 but continues to look vulnerable. Short covering helped in ustaining certain counters, particularly the realty and Banking counters but the rebound was not convincing. Some more recovery cannot be ruled out but Nifty would face resistance around 4880 and then 4930. PTC is showing momentum and could target 115-117 in coming days. More upside is also likely in Cipla, Patni, CESC, Ranbaxy (above 386), JSPL and Bajaj Hind. Tata Steel is placed just around the trendline support around 485 and failure to sustain above this level could impart more weakness.
Nifty faces resistance around 4880-85 and then around 4925-30 while support is seen around 4750.
