GOOD MORNING!


EQUITIES
Dow Jones (13107.21, UNCH) remained close yesterday as Hurricane Sandy continues its destruction. The Wall Street is preparing itself to open today.

Asian markets are trading mixed with Australia (4532 +0.59%), Hang Seng (21506.56, +0.36%) and Taiwan (7144.40, -0.53%).

Nikkei (8929.07, +0.98%) closed below its 9080-8870 range yesterday but found support at the trend line on the daily charts at 8840 and has bounced back in the range again. The break of the range on the upside will be bullish for a further rise to 9350.

Shanghai (2064.34, +0.10%) is trading flat near its trend line support of 2050 on the daily charts, this support of 2050 need to be watched closely for a further move in either direction.

Nifty (5597.90, -1.19%) turned bearish after RBI cut the CRR by 25 Basis points from 4.50% to 4.25% but left the Repo and the reverse Repo unchanged. It has broken its 5725-5650 range on the down side and is likely to dip towards its next support of 5500-5480 in the coming few sessions.

Dax (7284.40, +1.13%) continues to trade in the 7480-120 range and can rise further towards the upper end of the range in the coming sessions.


COMMODITIES
Nymex holding on to its support as brent remains ranged. Gold and Silver are also ranged as Copper looks bearish for a dip to its immediate support levels.

Nymex Crude (85.22, -0.37%) continues to hold on to its 85-83 support region and the break of which can take it down to 80-79. The trend has been bearish from mid September.

Brent (108.89, -0.50%) continues to trade in the 116-107 range from the past few days and as mentioned yesterday any rise is expected to meet resistance at 110 inside the trading rage itself.

Gold (1709.50, +0.05%) ranged move continues in the commodity between 1719-1698. A break on the downside can take it lower towards 1680-75 in the coming days.

Silver (31.86, +0.36%) also continues to trade in its broad 32.50-31.50 range and the break on the down side can open doors for a further fall to 30.00 and even to 27.00 in the coming days.

Copper (3.50, +0.31%) has recovered a bit after a break of 3.55 but the picture is bearish and is likely to fall towards 3.40 and 3.30 in the coming days.


CURRENCIES
The Dollar-Index (79.92) has come off below 80 failing rise past its 80.25-30 Resistance region and can dip further to 79.70-50 while below 80.

The Euro (1.2960) is getting good Support near 1.2875 and can be heading up to 1.3100-50 in the coming days while above its immediate Support at 1.2940. The chances of seeing the lower end of its 1.2800-3150 stands reduced now but cannot be completely ruled out. Dollar-Yen (79.55) is seeing a sell off after the BOJ yesterday and can fall to 79.00-78.80 or may be even lower in the coming days. The Euro-Yen Cross (103.11) is looking mixed but while below 103.50 a fall once again to 102 cannot be ruled out. Only a strong break/close above 103.50 will reduce the downside pressure.

Dollar-Swiss is trading near the lower end of its 0.9300-400 sideways range and the bias remains bearish for a test of 0.9250-00 in the near term and then to 0.9120-00 there after. The Pound (1.6080) has taken Support near 1.6000 in the last two days but will need a strong break/close above 1.6150 to bring in strong bullish sentiment for a rise to 1.6400-500 and reduce the downside pressure for a test of 1.5950-00. Aussie (1.0383) looks to be gaining strength and can rise to 1.0430-50 which is good Resistance region that can restrict further upmove towards 1.0500-20 for a while.

In Asia, the USD-SGD (1.2200) is continuing to stay flat with a bearish outlook for a fall to 1.2000. Dollar-Rupee (53.96/97) can test its important Support at 53.80 today. But the upside will still remain open for a test of 54.20-40 as the RBI had disappointed the market by leaving the Repo rated unchanged.


INTEREST RATES
The outcome of both the BOJ and the RBI had diappointed their respective markets and both the Japan and the Indian stock markets tanked yesterday. The BOJ left the rated unchanged and had increased their asset purchases by 11 trillion. On the other hand the Indian market was disappointed as the RBI cut only the CRR by 25bps to 4.25% but left the Repo rate unchanged at 8%.

The US, German and the Spanish 10Yr yeilds were slightly higher by 2bps each and are at 1.74%, 1.48% and 5.67% respectively. As we have been mentioning for some time, the Spanish yield has important Resistance in 5.70%-5.75% region which can restrict the upside and the yields can come off from there which would give further relief to the market.


DATA TODAY
9:00 GMT or 14:30 IST EU Unemp
...Expected 11.4% ...Previous 11.4%

12:30 GMT or 18:00 IST CA GDP
...Expected 0.2% ...Previous0.2%

DATA YESTERDAY

JP Unemp
...Actual 4.2% ...Previous 4.2%

BOJ Meeting
...Actual <0.10%...Previous <0.10%

RBI Repo Rate
...Actual 8.00% ...Previous 8.00%

RBI Reverse Repo Rate
...Actual 7.00%...Previous 7.0%

RBI CRR
...Actual 4.25%...Previous 4.5%

EU Sentiment Indicator
...Actual 84.5 ...Previous 85.2

US Case Schiller
...Actual 2.0% ...Previous 1.1%

US Cons Conf
...Expected 72.4 ...Previous 70.3
This data release is postpond to Thursday (01-Nov-12) beacused of the hurricane Sandy