Morning Dew - 11 October 2013

Key Points

• Budget deal hopes sent the JCI higher on Thursday after Obama said that he would accept a short-term increase in the debt limit with no policy conditions as well as negotiating on broader fiscal and health care policy after the ceiling is raised and the shutdown ends. JCI gained 0.66% on the news, but this may prove short-lived if no definite deal is agreed. As we approach October 17th, the sentiment will deteriorate amid concern over US default risk.
• 100-and-200-day-EMAs at around 4530 continue to show resilience for the JCI to crack, but so far the MACD has started to pick up pace above the zero line, supported by rising volume. RSI too, has started to bounce off the oversold area. Support remains at 4430 (50-day EMA), followed by 4357-4358, and then 4313-4314 ahead of 4207. Beyond 4530 we may see a revisit of 4791 prior high and then the Fibo target around 4900-4915. 
• CLPI had its entry filled at 750, and by the end of the session the reco gained 1.33%. Elsewhere, ARNA, MLPL, AISA and ACES were still stuck in the rut. MDLN, PGAS, and LCGP ended the session on a positive footing.
• US stocks rose as the Dow soared more than 300 points on Thursday. JCI may get some boost for Friday's session from this, but keep in mind that the stock market will have another long weekend so profit taking may keep rally in check.

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