NIFTY RESISTED NEAR 9475 HURDLE; 8909 BELOW 9104

NIFTY RESISTED NEAR 9475 HURDLE; 8909 BELOW 9104

WORLD MARKETS

Dow ended 0.4% lower while S & P 500 was flat and Nasdaq gained 0.8% yesterday as big tech shares rose and markets continued to weigh attempts to reopen economies against fears of an increase in coronavirus cases that could lead to future lockdowns. Nasdaq Composite rose for a sixth day, posting its longest winning streak this year.

New York Gov. Andrew Cuomo said the state’s restrictions on certain low-risk businesses and activities will lift on Friday. Meanwhile, the World Health Organization said several countries that eased coronavirus restrictions, including China, have seen increases in the number of positive Covid-19 cases.

WTI crude fell 60 cents, or 2.4%, to settle at $24.14 per barrel while Brent crude fell $1.4, or 4.4%, to $29.60 per barrel as coronavirus-induced demand fears outweighed Saudi Arabia announcing additional production cuts in an effort to support prices.

In Europe, FTSE was flat while DAX and CAC fell 0.7% and 1.3% respectively.

AT HOME

Repeating Friday's trading pattern, benchmark indices, after gaining 2% at the open, gave away all the gains through the session to end marginally in the red. Sensex settled at 31561, down 81 points while Nifty lost 12 points to finish at 9239. BSE mid-cap index gained 0.6% while small-cap index fell 0.1%. Bankex and Finance indices tumbled 2.3% and 1.7% respectively, becoming top losers among the sectoral indices while Auto index soared 4.2%, becoming top loser, followed by 1.8% higher Telecom index.

FIIs net bought stocks and index futures worth Rs 535 cr and 806 cr respectively but net sold stock futures worth Rs 888 cr. DIIs were net sellers to the tune of Rs 822 cr.

Rupee depreciated 19 paise to end at 75.74/$.

During an interaction with Chief Ministers yesterday, PM Modi hinted that a more graded relaxation of the lockdown could be on its way after May 17.

OUTLOOK

Today morning, Shanghai and Nikkei are modestly lower while Hang Seng is off 1.7%. SGX Nifty is suggesting around 60 points lower start for our market.

In yesterday's report we had reiterated the view that 9104, the 33% retracement level of the entire 7511-9889 upmove, continued to be immediate support while 9475  continues to be immediate hurdle on the hourly chart, a crossover of which was required for a fresh upmove.

Nifty, after touching a high of 9440 in the initial trade, slipped to end at 9239 and is set to open below 9200 today.

9104, the 33% retracement level of the entire 7511-9889 upmove, continues to be 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.