9533-9731 ABOVE 9440; 9240 IMMEDIATE SUPPORT

9533-9731 ABOVE 9440; 9240 IMMEDIATE SUPPORT

WORLD MARKETS

After a positive start, US indices saw a sustained downward move through the session to end with cuts of nearly 2% as markets assessed the risks of reopening the economy too soon and Republic Senator Lindsey Graham introduced legislation to require China to cooperate with a coronavirus investigation or face sanctions. Nasdaq snapped a six-session winning streak.

Dr. Anthony Fauci, the director of the National Institute of Allergy and Infectious Diseases, warned a Senate committee that the U.S. does not yet have the coronavirus outbreak “completely under control” and that the national death toll is “likely higher” than current levels.

Meanwhile, several countries including China and South Korea have experienced an uptick in coronavirus cases after restrictions were eased. Germany has also seen the reproduction rate of the virus tick upward.

U.S. consumer prices in April showed a drop of 0.8%, the most since 2008.

WTI crude futures climbed $1.6, or 6.8%, to settle at $25.78 per barrel while Brent futures rose 35 cents, or 1.2%, to $29.98 per barrel after Saudi Arabia said it would cut production by a further 1 million barrels per day in June, slashing its total production to 7.5 million bpd, down nearly 40% from April.

In Europe, FTSE rose 0.9% while DAX was flat and CAC fell 0.4%.

AT HOME

After falling nearly 2% in the morning, benchmark indices saw a smart rebound in noon to end with cuts of just about half a percent. Sensex settled at 31371, down 190 points while Nifty lost 42 points to finish at 9196. BSE mid-cap and small-cap indices fell 0.8% and 0.6% respectively. BSE Energy index nosedived 5%, becoming top loser among the sectoral indices, followed by 2.6% lower Oil & gas index. Telecom index jumped 4.3%, becoming top gainer, followed by 2.3% higher Power index.

FIIs net sold stocks, index futures and stock futures worth Rs 1662 cr, 872 cr and 195 cr respectively. DIIs were net sellers to the tune of Rs 364 cr.

Rupee appreciated 23 paise to end at 75.50/$.

IIP contracted 16.7% Y-o-Y in March Vs 4.5% growth in February.

Prime Minister Modi, in his address to the nation yesterday, announced a mammoth 20 lakh cr package,  that will be aimed at making the country self-reliant. The package is equivalent to nearly 10% of India’s GDP and includes measures worth Rs 7.79 lakh cr announced by government and RBI earlier. The details of the package will be revealed by Finance Minister Nirmala Sitharaman over next couple of days, starting today. He also said that the economic package will cover land, labour, liquidity and laws. He also said that details on the next phase of the lockdown will be given soon.

OUTLOOK

China's consumer price index for April rose 3.3% y-o-y, versus expectations of a 3.7% increase. Producer price index for April declined 3.1% y-o-y, as compared to a 2.6% fall expected.

Today morning, Asian markets are trading with cuts of 0.4%-0.9% while SGX Nifty is suggesting about 220 points higher 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, continues to be immediate support, upon breach of which, 8909, the bottom made on 21st April, would be the next important support.

Nifty broke 9104 support and plunged all the way to 9043, but rebounded from there to end at 9196 and is set to open near 9400 today.

9440, the top made on Monday, is the immediate hurdle to eye, upon sustained crossover of which, 9533-9731, the gap created by the big gap down opening on 4^th May, would be the next resistance zone to eye.

9240, yesterday’s top, which will now be the lower end of the gap created by today’s gap up opening, would act as immediate support. Below 9240, 9043, the low made yesterday, would be the next support to eye.

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.

9475 CONTINUES TO BE IMMEDIATE HURDLE; 9104 IMMEDIATE SUPPORT

9475 CONTINUES TO BE IMMEDIATE HURDLE; 9104 IMMEDIATE SUPPORT

WORLD MARKETS

US indices soared 1.6%-1.9% on Friday despite dismal monthly jobs report on signs that relations between US and China are warming and on hope that the worst of the coronavirus and its impact on the economy has passed.

A record 20.5 million jobs were lost last month, while unemployment rate jumped to 14.7% from 4.4%. Both the numbers are post-World War II records. However, market expected 21.5 million job losses and unemployment rate of 16%.

U.S. and Chinese trade representatives agreed to strengthen their cooperation in implementing the “phase 1” trade deal.

Apple said it will reopen stores starting next week, with temperature checks and a limited number of customers in the location at one time.

WTI crude gained $1.2, or 5%, to settle at $24.74 per barrel, while Brent crude gained $1.51 to settle at $30.97 per barrel.

European markets rose 1.1%-1.4%. German exports plunged 12% in March, a much sharper drop than expected, and marking the steepest drop since records began in 1990.

For the week, US indices gained 2.6%-6%, breaking two-week losing streak. Oil rose for the second consecutive week.

AT HOME

After gaining nearly 2% at the open, benchmark indices gave away most of these gains through the session to end higher by just 0.6%. Sensex settled at 31642, up 199 points while Nifty added 52 points to finish at 9251. BSE mid-cap index ended flat while small-cap index lost 0.4%. BSE Energy and FMCG indices gained 2.6% and 1.9% respectively, becoming top gainers among the sectoral indices while Power and Utilities indices were the top losers, down 2.4% and 1.8% respectively.

FIIs net bought stocks and index futures worth Rs 1725 cr and 329 cr respectively but net sold stock futures worth Rs 1530 cr. DIIs were net sellers to the tune of Rs 1503 cr.

Rupee appreciated 22 paise to end at 75.54/$.

ICICI Bank reported mixed set of numbers. Gross NPA ratio, at 5.35%, improved from 5.95% q-o-q and hit 17 quarter low. Slippages remained elevated at Rs 5306 cr, up 21.6% qoq. Watchlist addition remained elevated at Rs 2288 cr however watchlist declined to 2.58% of the book from 2.74%.  Net interest margin, at 3.87%, was best ever. PAT was lower than expected due to higher provisions.

For the week, Sensex and Nifty plunged 6.2% each, suffering the worst fall since the week ended 3rd April 2020.

OUTLOOK

U.K. Prime Minister Boris Johnson outlined over the weekend a “conditional plan” to slowly reopen society and the economy. Disney is also set to reopen its Disneyland theme park in Shanghai today. Meanwhile, U.S. Treasury Secretary Mnuchin warned that the jobless numbers could “get worse before they get better.”

Today morning, Asian markets are trading with gains of 0.5%-2.1% and SGX Nifty is suggesting around 120 points higher start for our market.

In Friday'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 9382 in the initial trade, slipped to end at 9251 but is set to open near 9350 today.

9475 continues to be immediate hurdle on the hourly chart, a crossover of which is required for a fresh upmove. If that happens, 9533-9731, the gap created by last Monday’s gap down opening, would be the next resistance zone.

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.

9104 CONTINUES TO BE IMMEDIATE SUPPORT; 9475 IMMEDIATE HURDLE

9104 CONTINUES TO BE IMMEDIATE SUPPORT; 9475 IMMEDIATE HURDLE

WORLD MARKETS

US indices gained 0.9%-1.4% with Nasdaq turning positive for 2020 as market continues to price in a swift reopening of the U.S. economy.

Data showed Jobless claims last week totaled 3.17 million. More than 33 million Americans have filed for unemployment benefits over the seven-week period ending May 2.

WTI crude fell 44 cents, or 1.8%, to settle at $23.55 per barrel while Brent settled 26 cents lower at $29.46 per barrel.

Main European markets rose 1.4%-1.5%. The Bank of England held interest rates at 0.1% but said it stands ready to take further action should the economic crisis caused by the coronavirus pandemic continue to deteriorate, with U.K. GDP expected to fall by 14% this year.

AT HOME

Sensex and Nifty ended lower by 0.8% and 0.6% respectively after a rangebound but choppy trading session. Sensex settled at 31443, down 242 points while Nifty lost 71 points to finish at 9199. BSE mid-cap and small-cap indices fell 0.5% and 0.1% respectively. Except 1.8% higher Energy index, all the BSE sectoral indices ended in red with Power index leading the losses, down 2.5%, followed by 2.2% lower Utilities and Consumer Durables indices.

FIIs net bought stocks worth Rs 19056 cr (which was mainly on account of GlaxoSmithKline selling its 5.7% stake in HUL for nearly Rs 25500 cr) but net sold index futures and stock futures worth Rs 1628 cr and 2977 cr respectively. DIIs were net buyers to the tune of Rs 3818 cr.

Reliance Industries has announced that the US-based private equity firm Vista Equity Partners will pick up a 2.3% stake in Jio Platform for Rs 11367 cr. The deal is at 12.5% premium over Facebook deal announced in April.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.3%-1.6% and SGX Nifty is suggesting about 60 points higher start for our market.

After Nifty nearly achieved the downside target of 9104 on Wednesday, in yesterday's report we had reiterated the view that 9104, the 33% retracement level of the entire 7511-9889 upmove, continued to be important immediate support while 9475 continued to be immediate hurdle.

Yesterday, Nifty fell 0.6% to close at 9199 and is set to open around 9250 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.

In the US, the Labor Department will release its monthly jobs report today which is expected to show a loss of more than 21 million in April.

Shree Cement will report its quarterly earnings today.

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.

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.

9533-9731 IS THE RESISTANCE ZONE; 9104 BELOW 9267

9533-9731 IS THE RESISTANCE ZONE; 9104 BELOW 9267

WORLD MARKETS

After opening in the red on the back of growing US-China tensions, US indices, led by technology stocks, saw a sustained upward move through the session to end in green. Nasdaq gained 1.2% while S & P 500 and Dow inched up 0.4% and 0.1% respectively.

Tensions between US and China continued to be in focus. Secretary of State Mike Pompeo on Sunday said there was “a significant amount of evidence” of the coronavirus originating in a Wuhan lab.

Meanwhile, New York Gov. Andrew Cuomo said that the daily number of hospitalizations and new deaths are declining.

Airline stocks tumbled after Warren Buffett’s said over the weekend that his Berkshire Hathaway dumped the entirety of its stakes in the sector due to the fallout from the pandemic.

Brent crude rose 28 cents, or 1.1%, to $26.72 a barrel, while WTI jumped 61 cents, or 3.1%, to settle at $20.39 per barrel.

In Europe, CAC and DAX tumbled 4.2% and 3.6% respectively while FTSE fell 0.2%. Eurzone IHS Markit manufacturing PMI fell to a record low of 33.4 in April from 44.5 in March.

AT HOME

Benchmark indices nosedived nearly 6%, breaking 4-day winning streak and giving away 80% of last week's gains. This is the biggest percentage fall for both the indices since 23rd March 2020. Sensex settled at 31715, down 2002 points while Nifty lost 566 points to finish at 9293. BSE mid-cap and small-cap indices fell 4.2% and 3.1% respectively.  Except 2.4% and 0.2% higher Telecom and Healthcare indices respectively, all the BSE sectoral indices ended in red with Finance index leading the losses, down 8.3%, followed by 8.2% lower Bankex and Metal indices.

FIIs net sold stocks, index futures and stock futures worth Rs 1374 cr, 1606 cr and 1386 cr respectively. DIIs were net sellers to the tune of Rs 1662 cr.

Rupee depreciated 60 paise to end at 75.71/$.

India's April manufacturing PMI slumped to 27.4 in April from 51.8 in March. This is the first contraction in three years and lowest reading since the data collection began over 15 years ago.

OUTLOOK

Markets in China, Japan and South Kora are closed today for holidays. Hang Seng is up nearly a percent while SGX Nifty is suggesting around 100 points higher start for our market.

In yesterday's report we had said that 9390, the erstwhile resistance, would now be the immediate support, upon breach of which, 9104, the 33% retracement level of the entire 7511-9889 upmove, would be the next support.

Nifty broke 9390 support and plunged all the way to 9267 before closing at 9305. The benchmark is set to open near 9400 today.

9533-9731, the gap created by yesterday's gap-down opening, would now act as immediate resistance zone, above which, 9889, the top made last week, would be the bigger hurdle to eye.

9267, the bottom made yesterday, is the immediate support, upon breach of which, 9104, the 33% retracement level of the entire 7511-9889 upmove, would  be the next support to eye. IF 9104 also gives way, 8909, the bottom made on 21st April, would be the next important support.