9390 CONTINUES TO BE IMPORTANT HURDLE; 9000 IMMEDIATE SUPPORT

9390 CONTINUES TO BE IMPORTANT HURDLE; 9000 IMMEDIATE SUPPORT

WORLD MARKETS

US indices gained 1.1%-1.6% on Friday as oil continued to recover and markets weighed the prospects of a potential coronavirus treatment from Gilead Sciences.

US oil rose 44 cents, or 2.7%, to $16.94 per barrel, after surging nearly 20% in the previous session, amid hopes the U.S. will reduce some of its production to account for shrinking demand and storage capacity. Brent gained 32 cents, or 1.5%, to trade at at $21.65.

Media reports suggested that a U.S. government-led trial of remdesivir, a Gilead Sciences’ drug, was running ahead of schedule. The report said those results could be ready by mid-May, with preliminary numbers possibly out earlier.

President Donald Trump signed a $484 billion relief bill to boost small businesses and hospitals.

European markets fell 0.9%-2%.EU leaders agreed Thursday evening to develop a trillion-euro emergency fund to help support governments with limited fiscal space. Meanwhile, British retail sales fell at the fastest rate on record in March.

For the week, US indices fell 0.2%-1.9%, snapping two-week winning streak. WTI crude fell over 30% for the week.

AT HOME

Benchmark indices ended with cuts of 1.7% each after a choppy session, breaking two-day winning streak. Sensex settled at 31327, down 535 points while Nifty lost 159 points to finish at 9154. BSE mid-cap and small-cap indices fell 1.8% and 1.4% respectively. BSE Realty and Finance indices nosedived 4.2% and 3.9% respectively, becoming top losers among the sectoral indices while Energy and Healthcare indices were the top gainers, up 2% and 1.4% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 207 cr, 456 cr and 105 cr respectively. DIIs were net sellers to the tune of Rs 994 cr.

Rupee depreciated 38 paise to end at 76.45/$.

For the week, Sensex and Nifty fell 0.8% and 1.2% respectively, breaking two-week winning streak.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.7%-1.9% and SGX Nifty is suggesting about 75 points higher start for our market.

In Friday's report we had reiterated the view that, 9390, the top made on Monday, which exactly coincided with the 38.2% retracement level of the entire 12430-7511 fall, continued to be important immediate resistance, a crossover of which is required for a fresh upmove.

Nifty, on Friday, slipped 159 points to finish at 9154 but is set to open above 9200 today.

9390, the top made last week, which exactly coincided with the 38.2% retracement level of the entire 12430-7511 fall, continues to be important immediate resistance, a crossover of which is required for a fresh upmove. If that happens, 9570, where an upwards sloping trendline adjoining recent tops on daily chart is placed, would be the next target/resistance to eye.

On the way down, 9000 is where a trendline adjoining recent bottoms on the hourly chart lands support. Below 9000, 8909, the low made last week, would be next important support.

Indusind Bank and Ambuja Cement will report their quarterly earnings today.