The U.S. economy grew at a 3.5% annual rate in the third quarter

International News:

The U.S. economy grew at a 3.5% annual rate in the third quarter, ending a string of declines over four quarters that resulted in the most severe slide since the Great Depression. Asian stocks advanced, paring the MSCI Asia Pacific Index’s first monthly decline since February, as Japan’s jobless rate unexpectedly dropped and the U.S. economy grew faster than economists expected. Japan's unemployment rate fell to a four-month low of 5.3 percent in September, beating the market expectation that it would rise to 5.6 percent, according to data from the internal affairs ministry. Banks trimmed their borrowing from the Federal Reserve's emergency lending program over the past week, evidence that some credit problems are easing as the economy recovers. Inflation grew by 1.51 per cent as of October 17 on the back of higher food prices. Duty-free white sugar imports into India could be upped by another one million tones (mt) to boost domestic availability and keep prices under check.
With trading hours at stock exchanges set to be extended by two-and-a- half hours, the half a dozen news channels together will get 20 per cent more advertising inventory to sell. A Special court will be set up in Hyderabad soon to try the Satyam Computer Services case. The government has approved a remunerative price of Rs.129.84 for a quintal of sugarcane during the 2009-10 season, beginning this month. It also approved a bonus of Rs.50 per quintal for paddy farmers during 2009-10 marketing season. The economic recovery will be faster in Asia than the rest of the world and is projected to grow by 5.75 per cent during 2010, says IMF.

Corporate news:

Aurobindo Pharma Limited, a Hyderabad-based manufacturer of generic pharmaceuticals and active pharmaceutical ingredients (APIs), has received approval from the Medicines Control Council (MMC) to manufacture and market two more products in South Africa. The Supreme Court while hearing the gas dispute of the Ambani brothers, said that the basis for fixing the government determined natural gas price of $4.20 per unit required examination. Godrej Properties Ltd, which has geared up for a maiden public offer, is considering to sell about four per cent stake in the company to private parties before the issue. The company, which has already filed draft papers with SEBI for its proposed IPO, is mulling a pre-placement of up to 24.44 lakh shares with certain investors. DBS Group, South East Asia’s largest bank, is set to kick off its retail banking operations in India. Tata Tea quits beverage retailing, to focus on branded products. BSNL to open bids today for Rs.900 cr IT project for the north zone. CESC is scouting for acquiring coal mines in Indonesia and South Africa. Stainless steel prices are likely to remain stable in the coming months, according to stainless steel producer JSL Ltd. A massive fire broke out at IOC’s fuel depot in Jaipur.

Derivative View:

Nifty: (4750): The index opened on a negative and declined throughout the day’s trading session. It ended the day with loss of 75 points. The index continues its decline post its close below the 10 and 20 dma level. Index is trading around the critical support level of 4700, pullback can be expected from around the 4700 level. Lower support is around 4648. On the upside index faces resistance around 4833-4860.
Nifty Nov contract ends the Day down by 51.70 points at a premium of 24.30 points in Nov contracts paring OI by 7.8% across all active Nifty contracts. Nifty Open Int PCR at 1.277 compared to 1.245 on the first day of the previous expiry. Nifty VIX at 28.22 from 28.48 the previous Day. Highest OI in Nifty put at 4800 Nov strike and calls is at 5000 Nov strike. Market wide rolls seen at 83.76% compared to 3 month average of 79.20% and 6 month average of 77.86%. Nifty rollover seen at 76.22% compared to the 3 month average of 71.83. Nifty sees 9% higher rollover (46294 contracts)compared to the previous expiry.