Local equity markets settled higher on Monday prompted by the strong global cues and value picking from the investors throughout the day's session. The 50-share S&P CNX Nifty managed to reclaim the 5100-mark and settled above this level. After starting the day on firm note markets witnessed some pressure in earlier part of the day but over 3% gains in India's largest private sector company, Reliance Industries (RIL) helped the bourses to extend the gains as the day progressed. RIL has made a preliminary non-binding cash offer to acquire a controlling stake in bankrupt Dutch chemical company LyondellBasell Industries. The telecom sector stocks faced heavy unwinding of positions from the marketmen as they sensed another round of tariff war in the world's fastest growing telecom market. Finally, the BSE Sensex gained 158.33 points or 0.93% to end at 17,180.18, while the S&P CNX Nifty added 51.1 points or 1.01% to settle at 5103.55.

The US markets surged to new high on Monday encouraged by better than expected existing home sales data, all the Major stock indexes soared more than 1%.The other factor that led the rise in stocks was the dollar resuming its long slide, helping the commodity and energy stock gain strength. The National Association of Realtors reported that October home sales rose more than 10%. The Dow Jones Industrial Average surged 132.79 points, or 1.29%, to 10,450.95. It was the Dow's highest close since October 2, 2008. The Standard & Poor's 500 index rose 14.86 points, or 1.36%, to 1,106.24, while the Nasdaq composite index added 29.97 points, or 1.40%, to close at 2,176.01.

The crude prices closed higher on Monday well supported by the weak dollar and expectations for economic growth on getting better than expected house sales data. But concerns about lukewarm demand and high inventories pulled crude off its intraday high. Benchmark crude for December delivery settled at $77.56 a barrel on the New York Mercantile Exchange after the release of some surprising housing numbers. In London, Brent crude for January delivery fell 26 cents to settle at $77.46 on the ICE Futures exchange.

The Indian rupee gained some more strength on Monday extending its gains of previous session. The rupees closed at 46.47, 15 paise stronger compared to its Friday's close of 46.62/63.The stock markets continued their rally despite some weakness in regional stocks raised the expectations of foreign fund inflow also the dollar's weakness against other currencies supported the Indian rupee.

The FII on Monday were the net sellers in the equity segment with gross buying of Rs 2291.70 crore against gross sell of Rs 2417.30 crore, while in the debt segment they were the net buyers with a gross purchase of Rs 472.50 crore against gross sales of Rs 391.00 crore.

The US markets surged on Monday on getting better than expected housing sales data, investors who have started showing their inclination towards dollar and treasury, again returned to stocks. The major Asian markets have made a weak start with most of the indices trading in red. The domestic markets rushed forward for the second consecutive day led by Reliance, commodities and other oil & gas sector stocks. The markets are likely to make a slight soft opening today with investors taking the opportunity to book profit. The telecom sector is again likely to be in somber mood while the QIP issue by Hindalco to part finance its three greenfield projects is going to put the stock in limelight.

Support and Resistance: S&P CNX Nifty and BSE Sensex

                                                             Nifty Top volumes

• Bharti Airtel has launched 'Airtel 999 Broadband - DTH' offer, to every new Airtel broadband customer of Airtel digital TV connection at a discounted rate of only Rs 999.
• Tata Steel will issue convertible bonds totalling $546.9 million in exchange for $493 million worth of securities.
• Another DLF project is in trouble, as 78 investors have approached an arbiter for permission to exit a commercial complex being built by DLF in Rajarhat.
• The government is planning to raise about Rs 16,000 crore via a follow-on public offer in state-owned steel major SAIL.
• Cairn India has despatched its first consignment of crude to private sector refining giant Reliance Industries.

Under this co...