ALL EYES ON US ELECTIONS

ALL EYES ON US ELECTIONS
WORLD MARKETS                             
US indices soared 2.1%-2.4%, marking the best day since March 1, after the FBI again cleared Democratic nominee Hillary Clinton over her use of a private server. S & P 500 broke 9-day losing streak with financials, industrials and health care leading all sectors higher.
US oil rose 1.9% to $44.89 per barrel, boosted by a commitment from OPEC to stick to a deal to cut output.
Dollar index rose to 97.74 from 96.90. Gold fell $25 to $1279 per ounce.
European markets climbed 1.7%-2.6%.
AT HOME
After climbing a percent and fifth in the opening trade, benchmark indices gave away little less than half of the gains through the session to end higher by seven tenth of a percent. Sensex settled at 27459, up 185 points while Nifty added 63 points to finish at 8497. BSE mid-cap and small-cap indices gained 0.6% and 1.2% respectively. Except a 0.5% and 0.1% cut in Telecom and Capital Goods indices respectively, all the BSE sectoral indices ended in green with Metal and Healthcare indices leading the tally, up 1.9% each.
FIIs net bought stocks and stock futures worth Rs 311 cr and 953 cr respectively but net sold index futures worth Rs 236 cr. DIIs were net buyers to the tune of Rs 780 cr.
Rupee depreciated 4 paise to end at 66.74/$.
Lupin soared after receiving an establishment inspection report (EIR) from the US Food and Drug Administration for its Goa facility, leading to the closure of all outstanding USFDA inspections of this facility.
ICICI Bank beat expectations on profit front but asset quality was disappointing in July-September quarter. Standalone profit rose 2.4% y-o-y to Rs 3102 crore, supported by other income but impacted by sharp spike in provisions for bad loans. NII rose half a percent to Rs 5253 cr. NIM fell to 3.13% from 3.16% q-o-q. Gross non-performing assets as a percentage of gross advances climbed 95 basis points to 6.82% and net NPA rose 22 bps to 3.57% on sequential basis. The watchlist declined 16% q-o-q to Rs 38800 cr. Slippages fell 3% to Rs 8000 cr.
Cognizant cut its Calendar 2016 revenue guidance from 8.5-9.5% to 8.5-9%.
OUTLOOK
Today morning Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 30 points higher start for our market.
After Nifty broke the 8500 support we have been working with downside target of 34 week moving average, which is now placed around 8325.
In yesterday’s report we had mentioned that immediate hurdle on the hourly chart is placed around 8560, with the stop-loss o which short positions should be held on to.
The benchmark, after touching a high of 8536 in the initial trade, retreated to end at 8497.
8560 continues to be immediate hurlde on the way up a crooosver of which should be awaited for the closure of short positions and initiation of longs. Above 8560, 8680, where the trendline adjoining recent tops on the daily chart is placed, would be the next target to eye.
However, keeping in mind the event risk related to US Presidential elections, one would do well to trade light and take options’ route.
Ashok Leyland, Bharat Forge and BHEL will report their quarterly earnings today.
The polling in US will begin at 00.01 ET or around 10.30 am IST and will close at 9.30 pm IST. The first polls will begin to close about 11pm GMT (4.30 am IST), but things will get a lot more interesting about 1am GMT (6.30 am IST) when they close in key battlegrounds like Pennsylvania. Polls begin to close in western states from about 3am GMT (8.30 am IST) onwards. Final results should be known by around 4am GMT (9.30 am IST) on November 9.
Financial markets in the U.S. and around the world had been largely pricing in a victory for Clinton over Republican nominee, Donald Trump. Market expectations for Congress, meanwhile, had been for the House to remain under GOP control while the Senate flips in favor of the Democrats.

Donald Trump’s victory will not only bring the knee jerk reaction for the market, but we are also concerned about the geopolitical uncertainty.
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ALL EYES ON US ELECTIONS

ALL EYES ON US ELECTIONS
WORLD MARKETS                             
US indices soared 2.1%-2.4%, marking the best day since March 1, after the FBI again cleared Democratic nominee Hillary Clinton over her use of a private server. S & P 500 broke 9-day losing streak with financials, industrials and health care leading all sectors higher.
US oil rose 1.9% to $44.89 per barrel, boosted by a commitment from OPEC to stick to a deal to cut output.
Dollar index rose to 97.74 from 96.90. Gold fell $25 to $1279 per ounce.
European markets climbed 1.7%-2.6%.
AT HOME
After climbing a percent and fifth in the opening trade, benchmark indices gave away little less than half of the gains through the session to end higher by seven tenth of a percent. Sensex settled at 27459, up 185 points while Nifty added 63 points to finish at 8497. BSE mid-cap and small-cap indices gained 0.6% and 1.2% respectively. Except a 0.5% and 0.1% cut in Telecom and Capital Goods indices respectively, all the BSE sectoral indices ended in green with Metal and Healthcare indices leading the tally, up 1.9% each.
FIIs net bought stocks and stock futures worth Rs 311 cr and 953 cr respectively but net sold index futures worth Rs 236 cr. DIIs were net buyers to the tune of Rs 780 cr.
Rupee depreciated 4 paise to end at 66.74/$.
Lupin soared after receiving an establishment inspection report (EIR) from the US Food and Drug Administration for its Goa facility, leading to the closure of all outstanding USFDA inspections of this facility.
ICICI Bank beat expectations on profit front but asset quality was disappointing in July-September quarter. Standalone profit rose 2.4% y-o-y to Rs 3102 crore, supported by other income but impacted by sharp spike in provisions for bad loans. NII rose half a percent to Rs 5253 cr. NIM fell to 3.13% from 3.16% q-o-q. Gross non-performing assets as a percentage of gross advances climbed 95 basis points to 6.82% and net NPA rose 22 bps to 3.57% on sequential basis. The watchlist declined 16% q-o-q to Rs 38800 cr. Slippages fell 3% to Rs 8000 cr.
Cognizant cut its Calendar 2016 revenue guidance from 8.5-9.5% to 8.5-9%.
OUTLOOK
Today morning Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 30 points higher start for our market.
After Nifty broke the 8500 support we have been working with downside target of 34 week moving average, which is now placed around 8325.
In yesterday’s report we had mentioned that immediate hurdle on the hourly chart is placed around 8560, with the stop-loss o which short positions should be held on to.
The benchmark, after touching a high of 8536 in the initial trade, retreated to end at 8497.
8560 continues to be immediate hurlde on the way up a crooosver of which should be awaited for the closure of short positions and initiation of longs. Above 8560, 8680, where the trendline adjoining recent tops on the daily chart is placed, would be the next target to eye.
However, keeping in mind the event risk related to US Presidential elections, one would do well to trade light and take options’ route.
Ashok Leyland, Bharat Forge and BHEL will report their quarterly earnings today.
The polling in US will begin at 00.01 ET or around 10.30 am IST and will close at 9.30 pm IST. The first polls will begin to close about 11pm GMT (4.30 am IST), but things will get a lot more interesting about 1am GMT (6.30 am IST) when they close in key battlegrounds like Pennsylvania. Polls begin to close in western states from about 3am GMT (8.30 am IST) onwards. Final results should be known by around 4am GMT (9.30 am IST) on November 9.
Financial markets in the U.S. and around the world had been largely pricing in a victory for Clinton over Republican nominee, Donald Trump. Market expectations for Congress, meanwhile, had been for the House to remain under GOP control while the Senate flips in favor of the Democrats.

Donald Trump’s victory will not only bring the knee jerk reaction for the market, but we are also concerned about the geopolitical uncertainty.
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Copyright 2016 einfoMet
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