9039-8185 CONTINUES TO BE IMMEDIATE RANGE

9039-8185 CONTINUES TO BE IMMEDIATE RANGE

WORLD MARKETS

After a positive start on the back of strong factory data out of China, US indices reversed to end with cuts of 1%-1.8%.

U.S. cases of the fast-spreading virus have topped 177,000, according to Johns Hopkins University. The death toll from the virus in America has surpassed 3,400.

European markets gained 0.4%-2% for the day but for the quarter, the pan-European Stoxx 600  index plunged 23.1% for its worst decline since 2002.

U.S. crude gained 1.9%, or 39 cents, to $20.48 per barrel after U.S. President Donald Trump and Russian President Vladimir Putin agreed to talks aimed at stabilizing energy market. Brent however fell 2 cents to $22.74 a barrel. For the month and the quarter, the commodity suffered the worst fall ever.

For the month of March, US indices fell 10.1%-13.7%. The Dow and S&P 500 had their worst first-quarter performances ever, losing 23.2% and 20%, respectively. The Dow also had its worst overall quarter since 1987 while the S&P 500 had its biggest quarterly loss since 2008.

Tuesday evening, US President Trump said that the U.S. should prepare for a “very, very painful two weeks” from the rampant coronavirus.  White House officials are projecting between 100,000 and 240,000 virus deaths in the U.S

AT HOME

Bulls came back with a vengeance after yesterday's retreat, as Sensex and Nifty climbed 3.6% and 3.8% respectively, recouping most of yesterday's losses. Sensex settled at 29468, up 1028 points while Nifty added 316 points to finish at 8597. BSE mid-cap and small-cap indices gained 2.5% and 3% respectively. All the BSE sectoral indices ended in green with Oil & Gas and Energy indices leading the tally, up 8.7% and 7.8% respectively.

FIIs net sold stocks worth Rs 3045 cr but net bought index futures and stock futures worth Rs 1506 cr and 1256 cr respectively. DIIs were net buyers to the tune of Rs  3576 cr.

Rupee appreciated 10 paise to end at 75.55/$.

For the month of March, Sensex and Nifty plunged 23% each, marking the biggest monthly fall since October 2008. For financial year 19-20, Sensex and Nifty saw cuts of 23.8% and 26% respectively, posting worst fiscal year performance since FY 2008-09.

February eight core industries growth stood at 5.5%, up from 1.4% in January.

The government sharply cut interest rates on small savings scheme by 80-140 bps for April-June.

OUTLOOK

China's Caixin March manufacturing PMI has come in at 50.1, up from 40.3 in February and beating forecast of 40.3 reading.

Today morning, Nikkei and Hang Seng are down 1.4% and 0.7% respectively  while Shanghai is marginally higher. US futures are are down nearly a percent. SGX Nifty is suggesting about 100 points lower start for our market.

In yesterday's report we had said that 9039, the top made on Friday, continued to be immediate hurdle to eye and had advised holding on to long positions with the stop-loss of 8185, which was the immediate support on hourly chart.

Nifty surged to touch a high of 8678 before closing at 8597 and is set to open near 8500 today.

9039, the top made last Friday, continues to be upside target/hurdle to eye. Above 9039, 9134 and 9390, the 33% and 38.2% retracement levels of the entire 12430-7511 fall, would be subsequent levels to eye.

8185 continues to be immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

Auto companies will report their March sales data.