8970, 8675 ARE NEXT SUPPORTS TO EYE

8970, 8675 ARE NEXT SUPPORTS TO EYE

WORLD MARKETS

US indices collapsed 9.4%-10%, with the Dow and S & P 500 suffering their worst fall since 1987, as fears over the global coronavirus outbreak continued to weigh on sentiment.

Trading was halted for 15 minutes shortly after the open as an initial 7% drop triggered one of the “circuit breakers” at the New York Stock Exchange and Nasdaq.

U.S. Federal Reserve announced new moves to pump in more than $1 trillion into the financial system in an effort to combat potential freezes brought on by the coronavirus.

The European Central Bank however surprised by announcing that it was not cutting rates. The central bank did, however, announce measures to support bank lending and expanded its asset purchase program by 120 billion euros ($135.28 billion).

European markets nosedived 11%-17%, posting their worst one-day drop in history, reacting to US President Donald Trump’s decision to impose restrictions on travel to the U.S. from Europe, and the European Central Bank’s decision not to cut interest rates.

WTI crude fell $1.48, or 4.5%, to settle at $31.50 per barrel while Brent plunged $2.51, or 7%, to $33.31 per barrel.

AT HOME

Bear rampage resumed after Wednesday's pause as Sensex and Nifty  collapsed 8.2% and 8.3% respectively, registering biggest percentage fall since October 2008 and closing at the lowest level in 2-years and 33-months respectively. Sensex settled at 32778, down 2919 points while Nifty lost 868 points to finish at 9590. Nifty mid-cap and small-cap indices nosedived 8.1% and 9.6% respectively to close at the lowest level in 38 months and 4-years respectively. All the BSE sectoral indices ended with cuts in excess of 5% with Oil & Gas and Realty indices leading the tally, down 9.8% and 9.5% respectively.

FIIs net sold stocks and index futures worth Rs 3475 cr and 14 cr respectively but net bought stock futures worth Rs 868 cr. DIIs were net buyers to the tune of Rs 3918 cr.

Rupee depreciated 60 paise to end at 74.25/$

Retail inflation eased to 6.58% in February from 7.59% in January while industrial production clocked a growth of 2% in January as against contraction of 0.3% in December.

OUTLOOK

Today morning, Asian markets are trading with cuts of 4%-9% and SGX Nifty is suggesting nearly 700 points lower start for our market.

In  yesterday's report we had said that 10004, the bottom made in October 2018, was the next below which, 9630, which was the 50% retracement level of the entire 6825-12430 upmove, would be the next level to eye.

Nifty broke 10004 support in the initial trade itself and plunged all the way to 9508 before closing at 9590 and is set to open below 9000 today.

8970, followed by 8675, the 61.8% and 67% retracement levels of the entire 6825-12430 upmove, would be support levels to eye after today's gap-down opening.