7500, 7350 CONTINUE TO BE SUPPORTS TO EYE; 8365 IS IMMEDIATE HURDLE

7500, 7350 CONTINUE TO BE SUPPORTS TO EYE; 8365 IS IMMEDIATE HURDLE

WORLD MARKETS

US indices soared 8%-11.4%, with the Dow posting its best one-day percentage gain in 87 years, on hopes that Congress would pass a massive $2 trillion stimulus bill to shield the economy from the coronavirus pandemic. S & P 500 had its best day since October 2008.

Reports that the outbreak was peaking in Europe also boosted the sentiment. Both new cases and deaths have dropped for two days in Italy, and the head of Germany’s public health institute said the infections rate in Europe’s largest economy was leveling off.

IHS Markit’s U.S. manufacturing PMI slipped to 49.2 in March from 50.7 in February, while the service PMI sank to 39.1 from 49.9, the lowest level recorded since data became available in October 2009. New residential home sales for February fell 4.4% to a annual rate of 765,000 from January’s revised level of 800,000.

Brent crude gained 22 cents to $27.27 per barrel, while WTI futures rose 65 cents, or 2.8%, to $24.01.

European markets climbed 8%-11%. Eurozone composite PMI nosedived to 31.4 in March from 51.6 in February, leaving the index at its lowest on record.

AT HOME

After falling more than a percent in first hour, Sensex and Nifty climbed nearly 4% from the bottom of the day to end higher by 2.7% and  2.5% respectively. Sensex added 692 points to settle at 26674 while Nifty finished at 7801, up 190 points. BSE mid-cap index gained 1.6% while small-cap index ended unchanged. BSE IT and Teck indices soared 7% and 5.8% respectively, becoming top gainers among the sectoral indices while Realty and Capital Goods indices were the top losers, down 2% and 0.7% respectively.

FIIs net sold stocks and stock futures worth Rs 2153 cr and 1156 cr respectively but net bought index futures worth Rs 3197 cr. DIIs were net buyers to the tune of Rs 1554 cr.

Rupee appreciated 34 paise to end at 75.88/$.

Prime Minister Narendra Modi announce a nationwide, 21 day, lockdown starting yesterday midnight.

Finance minister Nirmala Sitharaman announced a slew of measures for extension of statutory and regulatory compliances with respect to Income Tax, GST and IBC (Insolvency and Bankruptcy Code)  in view of the coronavirus pandemic spreading its wings and impacting the economy. She also said that the Economic Task Force will soon announce an economic relief package to deal with the impact of the coronavirus pandemic on the economy.

OUTLOOK

Today morning, Asian markets are trading with gains of 2%-6% and SGX Nifty is suggesting about 150 points lower start for our market.

In yesterday's report we had said that 7500-7340 continued to be next support zone as 7500 is where a trendline adjoining bottoms made in October 2012 and August 2013 is placed while 7340 is the 50% retracement level of the entire 2252-12430 upmove seen after 2008.

Nifty, after touching a low of 7511, rebounded to end at 7801 and is set to open below 7700 today.

7500, 7340 continues to be support to eye as 7500 is where a trendline adjoining bottoms made in October 2012 and August 2013 is placed while 7340 is the 50% retracement level of the entire 2252-12430 upmove seen after 2008. If 7340 breaks, 6825, the bottom made in February 2016, would be the next support.

Immediate hurdle on the hourly chart has moved lower to 8365, upon crossover of which 8883, the top made on Friday, would be the next target/resistance to eye.