Goldman posted a $3.2 billion quarterly profit

International News:

Goldman posted a $3.2 billion quarterly profit Thursday, crushing Wall Street estimates for the third straight quarter. New York-based Goldman made $5.25 a share, up from $1.81 a year ago and well above the $4.24 analysts surveyed by Thomson Financial were forecasting. International Business Machines posted third-quarter results on Thursday that met analysts' forecasts, then raised its expectations for the rest of the year, citing improving sales trends during the quarter. IBM said its net income for the quarter rose to $3.2 billion, up 14% compared to last year. Google said the worst of the recession has passed, as it reported quarterly profit and sales that rose from year-earlier results and easily trounced Wall Street's forecasts. Google's strong third quarter could be a good sign for the economy, as the company's ad clicks serve as a kind of barometer of consumers' willingness to spend. Citigroup, the lender 34% owned by the US government, posted a $101 million profit, defying expectations for a loss, as the company added the smallest amount to loan-loss reserves in two years.

Corporate news:

Inflation for the week ended October 3, 2009 stood at 0.92% against 0.70% for the previous week. The economy is unlikely to return to 9% growth level in the near future as the global slowdown may continue for some time, says Prime Minister’s Economic Advisory Council member, Govind Rao. Several Indian companies and financial institutions are planning to raise money from the overseas markets by issuing bonds.
Anil Ambani has alleged that there was a vicious and malafide campaign against his telecom company, Reliance Communications, by a known rival group. Sterlite Industries has announced a capital expenditure plan of Rs.2300 crore in a 400 kilo tonnes per annum brownfield copper smelter expansion project at Tuticorin in Tamil Nadu. SpiceJet plans to raise Rs.200 crore before the end of the current financial year. The instrument through which the funding would be done is yet to be decided. Rallis India will spend Rs.150 crore to build a factory at Dahej in Gujarat. Reliance Infrastructure has bagged a road construction project of around Rs.590 crore in Rajasthan. Polaris Software has announced that it has signed an agreement to acquire 100 per cent of Laser Soft Infosystems Limited.

Technical View:

Nifty: (5108): The index opened on a positive note and a saw profit taking at higher levels. It ended the day with loss of 9 points. The index is trading around the recent high of 5110,it has closed around the 5110 level. The index can see consolidation around the 5100 level. Index is trading above the 10 & 20 dma, near term bias should be considered positive, declines should find support around the averages. The 10 dma = 5041 and 20 dma = 4997.On the upside index faces resistance around 5167. Intra day support is around 5075 and resistance around 5152. Nifty Oct contract ends the Day marginally down by 4.90 points at a premium of 1.10 points in Oct contracts paring OI by 0.3% across all active Nifty contracts. Nifty Open Int PCR at 1.454 compared to 1.434 previous day. Nifty VIX at 26.64 marginally rising from 26.38 the previous Day. Ø Nifty put options add 17.69 Lakhs and call options add 6.38 Lakhs in OI during the day. Addition in Nifty put options seen in 4800, 5000 &4900 Oct strike during the day. Addition in Nifty call options seen in 5000 & 5100 Oct Strike during the day. Highest OI in Nifty put at 4900 Oct strike and calls is at 5300 Oct strike. FII side sees long liquidation in Nifty futures short build up in stock futures and Nifty options was bought.