NIFTY MOVES CLOSER TO 9104 TARGET; TRAIL STOP-LOSS TO 9475

NIFTY MOVES CLOSER TO 9104 TARGET; TRAIL STOP-LOSS TO 9475

WORLD MARKETS

US indices gained 0.6%-1.1%, but closed off-the-day-high, as markets weighed the consequences of a growing number of states beginning to reopen their economies.

California will permit clothing stores, bookstores and flower shops to reopen for curbside pickup as soon as Friday while New York plans to ease restrictions on manufacturers, construction and select retailers next week.

President Trump acknowledged that “there’ll be more death” from coronavirus but argued that not reopening businesses would also cost people their lives in other ways such as drug overdoses and suicides.

US ISM nonmanufacturing index dropped last month to its lowest level since March 2009.

Disney reported a 58% drop in sales from theme parks and cruises but is expected to boost engagement on its newly-launched streaming service, Disney+.

WTI crude jumped 20.4%, or $4.2, to settle at $24.56 per barrel while Brent settled 13.9% higher at $31 per barrel, both posting their fifth-consecutive positive session, on optimism around ongoing production cuts and a recovery in demand with the reopening of economies around the world.

European markets rose 1.7%-2.5%.

AT HOME

After gaining nearly 1.5% at the open, benchmark indices nosedived nearly 2.5% from the top of the day to end lower by just under a percent, extending the losing streak to second straight day. Sensex settled at 31453, down 261 points while Nifty lost 88 points to finish at 9205. BSE mid-cap and small-cap indices fell 1% each. BSE Realty index and Bankex were the top losers among the sectoral indices, down 3% and 2.4% respectively. Power and Energy indices were the top gainers, up 1.3% and 1.2% respectively.

FIIs net sold stocks and stock futures worth Rs 1059 cr and 175 cr respectively but net bought index futures worth Rs 179 cr. DIIs were net sellers to the tune of Rs 995 cr.

Rupee appreciated 8 paise to end at 75.62/$.

OUTLOOK

Today morning, Nikkei is shut while Hang Seng is up 0.7% and Shanghai is off half a percent. SGX Nifty is suggesting a marginally higher start for our market.

Readers would recall that we had turned our view on Nifty negative after 9390 suport was breached and have been working with downside target of 9104, which is the 33% retracement level of the entire 7511-9889 upmove.

Nifty yesterday plunged all the way to 9190 before closing at 9205 and is set to open marginally higher today.

9104, the 33% retracement level of the entire 7511-9889 upmove, continues to be downside target/support to eye. IF 9104 gives way, 8909, the bottom made on 21st April, would be the next important support.

9475 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.