NIFTY NEARLY ACHIEVES 9104 TARGET; 9475 CONTINUES TO BE IMMEDIATE HURDLE

NIFTY NEARLY ACHIEVES 9104 TARGET; 9475 CONTINUES TO BE IMMEDIATE HURDLE

WORLD MARKETS

Dow and S & P 500 fell 0.9% and 0.7% respectively after data showed record private sector job losses. Nasdaq managed to gain 0.5% as technology shares rose.

Data from ADP and Moody’s Analytics showed private payrolls were cut by 20.2 million last month — the worst on record.

WTI oil, after a volatile session, ended lower by 2.3%, or 57 cents, at $23.99 per barrel, breaking five-day winning streak. Brent settled 4% lower at $29.72.

In Europe, FTSE ended marginally in the green while DAX and CAC fell 1.1% each. Eurozone IHS Markit’s final composite PMI plummeted to 13.6 in April from March’s already dismal 29.7.

AT HOME

Benchmark indices ended higher by seven tenth of a percent after a choppy session, breaking two-day losing streak. Sensex settled at 31685, up 232 points while Nifty added 65 points to finish at 3270. BSE mid-cap and small-cap indices gained 0.8% and 0.5% respectively. BSE Finance and Telecom indices climbed 2.5% and 2.3% respectively, becoming top gainers among the sectoral indices while FMCG index slipped 2%, becoming top loser, followed by 0.5% lower Consumer Durables and IT indices.

FIIs net sold stocks worth Rs 494 cr but net bought index futures and stock futures worth Rs 511 cr and 236 cr respectively. DIIs were net buyers to the tune of Rs 322 cr.

Rupee depreciated 13 paise to end at 75.75/$.

Stocks of NBFCs rose after SBI decided to allow moratorium relief to NBFCs on a case-to-case basis.

ITC tumbled after media report stated that the centre is reportedly looking to raise Rs 22,000 crore by selling its stake in ITC (7.94 pecent) which it holds through the Specified Undertaking of the Unit Trust of India (SUUTI.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.2%-0.8% and SGX Nifty is suggesting around 125 points lower start for our market.

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

Nifty yesterday touched a low of 9116, nearly achieving this target. From there it rebounded to end at 9270 but is set to open near 9150 today.

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

9475 continues to be immediate hurdle on the hourly chart, a crossover of which is required for a fresh upmove.

HCL Tech will report its quarterly earnings today.