9450 ABOVE 8883; 8160 IS IMMEDIATE SUPPORT
US indices soared 5.6%-6.4%, extending the winning streak to third straight day and shrugging off the record-breaking initial jobless claims while the Senate passed a massive economic stimulus bill amid the coronavirus outbreak. Dow had its bets three-day surge since 1931.
Jobless benefit claims soared to 3.28 million last week, highest so far. That number blew past the Great Recession peak of 665,000 and the all-time mark of 695,000 in October 1982.
After the Senate unanimously approved a $2 trillion economic relief package, the bill will now head to the House.
WTI crude slipped 7.7%, or $1.89, to settle at $22.60 per barrel, while Brent crude fell $1.01, or 3.69%, to trade at $26.43 per barrel.
European markets rose 0.7%-2.5%. The Bank of England on held rates steady and promised more asset purchases if needed to cushion the economic blow from the virus.
Sensex and Nifty climbed 4.9% and 3.9% respectively, extending the winning streak to third consecutive day. Sensex settled at 29947, up 1410 points while Nifty added 323 points to finish at 8641. BSE mid-cap and small-cap indices gained 3.5% and 3.7% respectively. All the BSE sectoral indices ended higher with Telecom and Capital Goods indices leading the tally, up 10% and 7.2% respectively.
FIIs net sold stocks, index futures and stock futures worth Rs 485 cr, 360 cr and 256 cr respectively. DIIs were net sellers to the tune of Rs 770 cr.
Rupee appreciated 73 paise to end at 75.15/$.
For the March derivative series, Nifty fell 25.7%.
Today morning, Asian markets are trading with gains of 1%-2.5% and SGX Nifty is suggesting about 100 points higher start for our market.
In yesterday's report we had said that 8377 was the immediate hurdle, a crossover of which will confirm a "buy" on hourly and 8883, the top made on Friday, would be the next upside target if that happens.
Nifty, crossed 8377 hurdle and surged all the way to 8749 before closing at 8641 and is set to open near 8700 today.
8883, the top made last Friday, continues to be upside target/resistance to eye. Above 8883, 9450, the 50% retracement level of the 11390-7511 fall seen since 5th March, would be the next target to eye.
Immediate support on the hourly chart is placed at 8120, with the stop-loss of which, trading longs should be held on to.
RBI governor will address media at 10 am today. Some measures that can be announced/expected are pushing back repayment deadline, extra credit lines for cash strapped companies and window/line of credit for NBFCs and Mutual Funds.