Merck net income jumped to $3.46 billion

International News:

Merck net income jumped to $3.46 billion, or $1.61 a share, from $1.12 billion, or 51 cents, a year earlier, Whitehouse Station, New Jersey-based Merck said. Asian stocks advanced as earnings reports from Australia to South Korea to Japan boosted speculation the global economy is exiting recession. Around 531,000 Americans filed new claims for unemployment last week, down from 520,000 the previous week. Economists surveyed by Briefing.com were expecting a bigger drop, to 515,000. The index of leading economic indicators (LEI) rose 1% in September after rising a revised 0.4% in the previous month. Economists thought it would rise 0.8%. The U.S. Federal Housing Finance Agency's housing price index fell 0.3% in September after rising 0.3% in August. Economists thought it would rise 0.3%. Inflation for the weekend October 10, 2009 stood at 1.21 per cent, the highest since May 23, 2009 when it was 1.34 per cent. From almost flat sales growth in 2008-09, ITC Ltd’s Lifestyle Retailing business division saw a low single digit growth during Q1FY’10. Den Networks, a cable television firm is entering the capital markets with an IPO of 2 cr shares. the price band for the issue has been fixed at Rs.195-205. ETHL Communications Holdings Ltd (ECHL), Essar Group’s holding company for telecom services, has raised Rs.4,280 cr through private placement of its zero coupon bonds.
Petronet LNG is all set to pick up a 10 per cent equity stake in ONGC Petro Additions Ltd. (Opal). Aditya Birla inks pact for Rs.1500 cr Orissa port.

Technical View:

Nifty: (4988): The index opened on a flat note and declined throughout the day’s trading session. It ended the day with loss of 75 points. The index exhibited weakness on break below the 20 dma level @ 5040. The index has closed below the 10 dma = 5067 and 20 dma = 5040,intra day pullback should face resistance around the averages. On the downside index has support around 4940-4930 band,intra day declines should find support around this level. Nifty Oct contract ends the Day down by 73.40 points at a premium of 8.80 points in Oct contracts paring OI marginally by 0.4% across all active Nifty contracts. Nifty Open Int PCR at 1.310 compared to 1.348 previous day on back of paring of 5.25 Lakh in Nifty puts and addition of 9.82 Lakh call options. Nifty VIX at 25.49 from 26.78 the previous Day. Highest OI in Nifty put at 4900 Oct strike and calls is at 5100 Oct strike. Addition was seen in 4800, 4900 & 4600 Nov strike puts, 5000 Oct, 5200 & 5300 Nov strike calls. Significant paring of position was seen in 4800, 5000 & 5100 Oct strike puts during the day.
FII side saw short build up in Nifty futures short build up in stock futures and Nifty options was bought. Long build up seen in ITC & Hindunilvr etc. Short build up seen in PIRHEALTH, LITL, HDIL, UNITECH, GTLINFRA, IOB, ORCHIDCHEM, DLF, DCHL, RANBAXY, TV-18 & RELMEDIA etc.