NIFTY ACHIEVES 8822 TARGET; 9158 IS IMMEDIATE HURDLE

NIFTY ACHIEVES 8822 TARGET; 9158 IS IMMEDIATE HURDLE

WORLD MARKETS

US indices soared 2.4%-3.8%, scoring their best day in six weeks on news that an experimental coronavirus vaccine from Moderna showed promising early signs.

Moderna said that after two doses all 45 trial participants had developed coronavirus antibodies.

WTI crude rose $2.4, or 8.1%, to settle at $31.82 per barrel while Brent settled 7.1% higher at $34.81 as production cuts and the easing of stay-at-home restrictions supported prices.

European markets climbed 3.3%-5.7%.

AT HOME

After a flattish start, benchmark indices saw a steep fall through the session to end with deep cuts of 3.4% each. Sensex lost 1068 points to settle at 30028 while Nifty plunged 313 points to end at 8823. Both the indices closed at their lowest level since 8th April. BSE mid-cap and small-cap indices slipped 3.9% and 2.9% respectively. Except 1.1% and 0.3% higher IT and Teck indices respectively, all the BSE sectoral indices ended in red with Finance index and Bankex leading the losses, down 6.4% and 6.3% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 2513 cr, 803 cr and 522 cr respectively. DIIs were net buyers to the tune of Rs 152 cr.

Rupee depreciated 35 paise to end at 75.91/$.

Bharti Airtel reported strong operational performance. ARPU for Indian operations rose 14% q-o-q at Rs 154. Revenue rose 8.1% to Rs 23723 cr, EBITDA was up 10.4% at Rs 10326 cr while margin improved 90 bps to 43.5%. The company reported net loss (before exceptional items) of Rs 471 cr. Net loss after exceptional items stood at Rs 5237 cr.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.7%-2.45 and SGX Nifty is suggesting around 150 points higher start for our market.

In yesterday's report we had said that 9044, the bottom made last week, continued to be important immediate support, upon breach of which 9044, 8909 and 8822, the bottoms made on 21st and 16th April respectively, would be the subsequent supports to eye.

Nifty broke 9044 support and plunged all the way to 8806, achieving both the downside target above and vindicating our view. The benchmark is set to open near 8950 today.

9158, the top made yesterday, would now act as immediate hurdle, upon crossover of which,  9281-9351, the gap created by gap down opening on 14th May, would be the next hurdle.

8811, the bottom made yesterday, is the immediate support, upon breach of which, 8700, the 50% retracement level of the entire 7511-9889 upmove, would be the next support to eye.

Meanwhile, trading shorts can be held on to with the stop-loss of 9158.

Bajaj Finance will report its quarterly earnings today.

Today, Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin will testify before the Senate Committee on Banking, Housing, and Urban Affairs and will update the Congress on the economic response to the coronavirus pandemic.