NIFTY SET TO ACHIEVE UPSIDE TARGET; TRAIL STOP-LOSS TO 9350

NIFTY SET TO ACHIEVE UPSIDE TARGET; TRAIL STOP-LOSS TO 9350

WORLD MARKETS

US indices soared 2.2%-3.6% after Gilead Sciences claimed it was seeing “positive data” from trials of its drug remdesivir as a coronavirus treatment. 

Gilead Sciences reported positive results from two tests that showed its drug remdesivir could be a Covid-19 treatment. Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, said remdesivir shows a “clear-cut” positive effect when treating the virus.

The U.S. Federal Reserve pledged to keep rates near zero for as long as needed and provide additional help to the economy.

WTI for June delivery surged 22%, or $2.72, to settle at $15.06 per barrel while Brent gained $2.1, or 10.2%, to settle at $22.54 after data showed a smaller-than-expected build in U.S. inventories.

European markets gained 2.2%-3.2%. Eurozone economic sentiment plunged to 67.0 in April from a downwardly-revised 94.2 in March.

Facebook and Microsoft rallied in after-hours trading after each issued better-than-expected revenue projections in their earnings reports.

AT HOME

Benchmark indices soared just under 2%, extending the winning streak to third consecutive day and closing at fresh highs in 1-1/2 months. Sensex added 605 points to settle at 32720 while Nifty finished at 9553, up 172 points. BSE mid-cap and small-cap indices rose 1% each. Except half a percent lower FMCG index, all the BSE sectoral indices ended in green with Metal and Finance indices leading the tally, up 3.9% and 3.2% respectively.

FIIs net bought stocks and stock futures worth Rs 722 cr and 478 cr respectively but net sold index futures worth Rs 66 cr. DIIs were net buyers to the tune of Rs 79 cr.

Rupee appreciated 50 paise to end at 75.69/$, it's strongest level in one month.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.3%-2.3% and SGX Nifty is suggesting about 150 points higher start for our market.

In yesterday's report we had said that 9650, where an upwards sloping trendline adjoining recent tops on daily chart was placed, would be the next target/resistance to eye and had advised holding on to long positions with a stop-loss of 9140.

Nifty soared to touch a high of 9600 before closing at 9553 and is set to open near 9700 today.

Today’s gap up opening will achive the upward sloping trendline target, which is now placed around 9675. Once this hurdle is taken out decisively, 9970, the 50% retracement level of the entire 12430-7511 fall, would be the next major target/resistance to eye.

Immediate support on the hourly chart has moved up to 9350, with the stop-loss of which, existing longs can be held on to.

Reliance Industries, HUL and Tech Mahindra will report their quarterly earnings today.