Bank of America lost $1 billion in the third quarter

Domestic News:

After reporting big profits over the last six months, Bank of America lost $1 billion in the third quarter as growing numbers of consumer loans soured and the bank paid millions of dollars to wean itself off government life support. GE said its third-quarter net income fell 44% to $2.4 billion, or 23 cents per share, for the period ended Sept. 30. Results included a charge of $600 million, or 5 cents per share for restructuring and cost cutting. Apple said its fiscal fourth-quarter net income rose 47% to a record $1.7 billion, or $1.82 per share from a year earlier. Analysts polled by Thomson Reuters were looking for $1.42 per share. Asian stocks rose, driving the MSCI Asia Pacific Index to the highest level in more than a year, as earnings reports boosted confidence in the global recovery. The main barometer of inflation in India, WPI Index, will be published from November 14, 2009, providing a more accurate gauge of prices to policymakers in the government and the Reserve Bank of India. The Reserve Bank of India is unlikely to tighten liquidity in next week’s policy review despite the build-up of inflationary pressures and double-digit growth in the industrial output, according to most economists. Cement companies are expected to add 31 milllion tonnes capacity in second half of the year. FII are overweight on India, but valuations may be a concern later.

Corporate news:

RIL-RNRL dispute is scheduled for an afternoon hearing in the Supreme Court today.
RIL has been named among the top 25 global companies for 2009, which managed to outperform the competition in midst of meltdown in the financial markets. A cabinet committee approved the sale of 5% stake in NTPC. This sale is expected to fetch the government a sum of Rs.9000 crore. Tata-Quippo, the telecom tower venture between the Tatas and Kolkata-based Kanorias of Srei Group, is in advanced stages of negotiations with New York-based private equity fund Apollo Management to finance acquisition of cellular operator Aircel’s tower assets, should it win the bid. Uco Bank is likely to raise Rs.900-950 crore from follow-on public offer after a strong rally in the stock market. FCS Software has entered into a technical collaboration tie-up with Macnes, a UAE-based software company, to serve customers of its technology partner Microsoft, Oracle, IBM.

Technical View:

Nifty: (5142): The index opened on a positive note and a saw profit taking at higher levels. It ended the day with loss of 1 points. The index is trading above the recent high of 5110. Closing above the 5141 level should be considered positive in the near term. Near term bias is considered positive till index is sustaining above 5110 on a closing basis. Intra day declines should find support around the 5110 level. Lower support is around 5075.On the upside index faces resistance around 5200-5275 levels.
Nifty Oct contract ends the Week up by 191.15 points at a discount of 16.70 points in Oct contracts adding OI by 0.7% across all active Nifty contracts. Nifty Open Int PCR at 1.500 compared to 1.253 last week on back of addition of 89.77 lakh in Nifty puts and paring of 13.24 lakh call options. Nifty VIX at 26.28 from 30.25 the previous Week. Highest OI in Nifty put at 4900 Oct strike and calls is at 5300 Oct strike.
Long build up was seen in PTC, SBIN, UNIONBANK, BANKBARODA, NOIDATOLL, BHUSANSTL, SUNTV, BANKINDIA, BANKNIFTY, ESSAROIL, ORCHIDCHEM, UCOBANK, JPASSOCIAT, LITL, DENABANK, NAGARFERT, GVKPIL, ORIENTBANK, ALBK, CENTURYTEX, SESAGOA, SYNDIBANK, YESBANK, VIJAYABANK, CANBK & HDIL. Short build up was seen in BAJAJ-AUTO, CONCOR, RCOM, HINDPETRO, AMBUJACEM, KFA, INDIACEM, BHARTIARTL, BPCL, IOC & ULTRACEMCO.