Nice November start!

I guess we all like to be recognized not for one piece of fireworks, but for the ledger of our daily work. - Neil Armstrong.

The fireworks may be missing for now but looks like we are set to start the event-packed Diwali week on a positive note. Most Asian markets are up after China’s official manufacturing PMI expanded at the fastest pace in six months in October. But shares in Japan are down owing to a few disappointing earnings. US and European markets closed flat on Friday.



The dollar is down against the euro ahead of an impending monetary easing by the Fed. The FOMC will announce its decision on Wednesday. US mid-term elections are slated for Tuesday. Back home, the RBI is likely to hike rates to contain inflation on Tuesday.

Central banks in Japan could also announce further easing measures this week. The Bank of England and the ECB will review their policy on Thursday. US jobs data on Friday will also be a key event to watch out for.

Auto and Cement companies will be in focus as they announce monthly numbers. Friday’s late surge will spill over into early morning trades, but one needs to be on guard and alert as sentiment may remain subdued before turning up again.

Results from Reliance Industries are more or less in line with estimates and are unlikely to cause any decisive change in the stock's movement. Maruti's Q2 numbers are also in line with analysts' forecast.

Economic statistics have been erratic of late and will make it tough for the RBI to take a call on policy rates on Tuesday. Though food inflation has dipped the data on six key infrastructure industries doesn’t inspire much confidence.

Any pullback may prove to be short lived unless the Nifty convincingly closes above 6100. The immediate support is at 5950 and then at 5800. On the way up, resistance is expected around 6100-6120 and again at 6150-6180.

The rise in open interest along with a decrease in the cost-of-carry suggests accumulation of short positions in Nifty futures. Overall, the Nifty may continue to move in a narrow range in the coming days.

Results Today: Century Textiles, Dishman Pharma, Emami, Gammon Infra, Goenka Diamond, GTL Infra, GMDC, Havells India, Hindustan Motors, JSW Energy, Lupin, Mandhana Inds, Punj Lloyd, PVR, Shrenuj, Subros and Technofab Engineering.

FII inflows have been tapering off. FIIs were net buyers of Rs. 7.35bn in the cash segment on Friday (provisionally), according to the NSE web site. Local funds were net buyers of Rs. 3.44bn. In the F&O segment, the foreign funds were net sellers at Rs. 5.32bn on Friday.