Keep marching, All is well !

This morning markets are greeted with both the positive and negative headlines. The weight of positive headlines is likely to overshadow the negative headlines as most of the negatives is already factored in and we believe that the positive catalysts will keep the bulls in driving seat today. Following are the key positive catalysts, the FPIs extended their buying for the third day in a row as they bought shares worth Rs 436.02 crore in Tuesday's session followed by cheerful global cues and an upbeat start to the earning season on Wall Street. On other hand, the negative headline is that IMF trimmed India's growth forecast by 90 bps to 6.1 per cent. At the time of writing, SGX Nifty was trading higher by 35 points trading at 11,470 levels. Meanwhile, Mindtree and Federal Bank are among the companies scheduled to announce their earnings today.

It's a sea of green for Asian equities on Wednesday on the back of strong rally on Wall Street amid buoyant earnings report from major corporates and on prospect of a possible Brexit deal. Japan's Index Nikkei 225 has rallied 1.55 per cent; China's Shanghai Composite and Hong Kong's Hang Seng index were up by 0.51 and 0.50 per cent, respectively.

Back home, Tuesday's trading session turned to be a terrific session for the bulls with the bulls extending their up-move for the third straight day. Key benchmark indices closed above important the psychological level of 38,500 (BSE Sensex) and 11,400 (Nifty). If one observes the price structure of Tuesday's session, it was a replica of Monday's session and only thing differentiating Tuesday's session from Monday's session was the activity in the final hour of the session. On Tuesday, the bulls extended their early gains to close near to 2-week high, while on Monday we witnessed profit booking. The broader market performance was muted with Nifty Midcap and Smallcap adding 0.23 and 0.13 per cent, respectively. Amongst the sectors, except Nifty IT which ended lower by 0.45 per cent, all the other indices ended in positive terrain while Nifty Auto posted strong gains of 2.23 per cent followed by Nifty Metal. Market breadth remained narrow as advance-decline ratio skewed towards decliners.

As for global happenings on Tuesday, Corporate results were the focal point on Wall Street with a number of major financial firms offering their third quarter results. Majority of the earnings were upbeat. Leading the charge were major US banks, with share of JP Morgan Chase & Co, Citigroup and Wells Fargo & Co surging on better than expected top-line growth. Elsewhere, Dow Component UnitedHealth Group's better than expected third quarter earnings and raising its full-year guidance gave market participants much to cheer about. In the end, Dow gained 0.90 per cent; the S&P 500 added 1 per cent and the Nasdaq rose 1.2 per cent. Majority of the European indices finished higher as worries about Brexit eased a bit with a European Union negotiator indicating that a deal between the EU and the UK is still possible ahead of the October 31st deadline.