9390 ABOVE 9134; TRAIL STOP-LOSS TO 8596

9390 ABOVE 9134; TRAIL STOP-LOSS TO 8596

WORLD MARKETS

US and European markets were shut on Friday in observance of Good Friday.

On Thursday, US indices gained 0.8%-1.4% on after Federal Reserve announced $2.3 trillion stimulus package.

In its latest move to cushion the U.S. economy from the impact of coronavirus, the Federal Reserve announced a $2.3 trillion package to boost local governments and small and mid-sized businesses.

US jobless claims continued to surge amid the coronavirus shutdown, with 6.6 million Americans filing first-time unemployment claims in the week ended April 4.

WTI crude plunged 9.3% to $22.76 per barrel while Brent fell 4.1% to $31.48 following Mexico's refusal to participate in oil output cut proposed by Saudi Arabia and Russia.

European markets rose 1.4%-2.9%

For the week, US indices gained 10.6%-12.7%, with the S&P 500 notching its best week since 1974 while the Dow had its 7th-best week ever.

On Sunday, the group of countries known as OPEC+ agreed to cut production by 9.7 million barrels per day, making it the single-largest output reduction on record.

AT HOME

Truncated trading week ended on a positive note as benchmark indices soared nearly 4% to close at the highest level since 16th March, marking a 3-week high. Sensex settled at 31159, up 1265 points while Nifty added 363 points to finish at 9111. BSE mid-cap and small-cap indices gained 3.6% and 3.2% respectively. All the BSE sectoral indices ended in green with Auto and Consumer Durables indices leading the tally, up 10.3% and 7.1% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 1738 cr, 755 cr and 497 cr respectively. DIIs were net sellers to the tune of Rs 466 cr.

Rupee appreciated 8 paise to end at 76.28/$.

For the week, Sensex and Nifty soared 12.9% and 12.7% respectively, registering biggest weekly gain in 11 years.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.2%-0.9% and SGX Nifty is suggesting around 50 points lower start for our market.

In Thursday's report we had said that 9131, the top made Wednesday, also coincided with the 33% retracement level of the entire 12430-7511 fall and hence was the immediate hurdle to eye. We had also said that the immediate support on the hourly chart has moved up to 8420, with the stop-loss of which, trading longs can be held on to.

Nifty, on Thursday surged to 9128 before closing at 9111 and is set to open near 9050 today.

9134, the 33% retracement level of the entire 12430-7511 fall, continues to be immediate hurdle on the way up, upon crossover of which, 9390, the 38.2% retracement level of 12430-7511 fall, would be the next target/resistance to eye.

8596, the 33% retacement level of the recent 7511-9132 upmove, is the immediate support, with the stop-loss of which, trading longs can be held on to.