NIFTY OUTLOOK FOR 8 & REVIEW

MIDSESSION BETTER

Nifty                               7852  -96

Nifty traded with negative bias through out the day and closed very weak for the day with a loss of more than 1%. All sectoral indices closed in the red. Strong support for October is at 7800 and further  weakness would set in only when it closes below 7800 for more than Two sessions.  Nifty spot is expected to encounter resistance at 7895,, 7930 and find support at 7810, 7770 for Wednesday. While Global cues  and  Funds flow  are expected to broadly guide the market movement, based on the present market position, market can be expected to trade in a zigzag manner with better midsession. Nifty could take support at lower levels

SENSEX DIPS TO TWO MONTH LOW

Sensex today plunged 296 points to close at nearly two-month low due to widespread losses in metal, healthcare, consumer durables and capital goods sector stocks on capital outflows and retail investors ahead of earnings season amid a mixed trend overseas. After opening 137 points lower, the 30-share index continued its slide to touch the day's low of 26,250.24 before ending the day at almost two-month low of 26,271.97, a level not seen since August 14, registering a steep fall of 296.02 points or 1.11 per cent. The gauge had lost 62.52 points in the previous session on Octrober 1. Stock markets remained closed on October 2, 3 and 6 for Gandhi Jayanti, Dussehra and Id-Ul-Zuha, respectively. FII/FPIs pulled out Rs 63.24 crore from domestic markets on October 1, according to exchange data. Similarly, the broader-based NSE Nifty closed down by 93.15 points or 1.17 per cent at 7,852.40 after shuttling between 7,943.05 and 7,842.70. Brokers said the sentiment dampened on foreign capital outflows and offloading of positions by retail investors ahead of the earnings season, with Infosys posting results later this week. Of the 30 Sensex shares, 23 closed lower led by Hindalco (down 4.35 per cent), Sesa Sterlite (4.32 per cent) and Cipla (3.67 per cent), while NTPC, Gail and Tata Motors remained major gainers. Globally, a mixed closing on the other Asian markets and a lower opening of the European stocks as a report showed German industrial production contracted the most in more than five years, also negatively impacted sentiment. Meanwhile, foreign portfolio investors (FPIs) sold shares worth a net Rs 63.24 crore last Wednesday as per the provisional data released by the stock exchanges. Sectorwise, BSE metal index suffered the most by falling 2.65 per cent, followed by healthcare by 1.85 per cent. Captial goods index by 1.78 per cent, Consumer durables index by 1.72 per cent, Realy index 1.27 per cent, PSU index 1.20 per cent and Banking index 0.87 per cent.