11684, 11614 ARE DOWNSIDE SUPPORTS; 11985 IS IMMEDIATE HURDLE

11684, 11614 ARE DOWNSIDE SUPPORTS; 11985 IS IMMEDIATE HURDLE

WORLD MARKETS

US indices nosedived 2.8%-3.2%, adding to Monday's steep losses as 10-year Treasury yield hit a record low and health officials warned of a possible coronavirus outbreak in the U.S.

The 10-year US Treasury yield traded at 1.33%, hitting an all-time low. The 30-year U.S. bond yield also reached a record low.

Centers for Disease Control and Prevention (CDC) officials briefed the U.S. on how to get ready if the coronavirus outbreak worsens domestically.

South Korean authorities have confirmed more than 900 cases within the country’s borders. Meanwhile, Italy has been the worst affected country outside of Asia, with more than 200 reported cases. Iran also confirmed at least 12 deaths.

Brent crude tumbled $1.48 to trade at $54.86 per barrel while WTI slipped $1.53 to settle at $49.90 per barrel, extending the losing streak to third straight day.

European markets fell 1.4%-2.4%. German economy grew by 0.6% in 2019, the weakest rate of expansion since the euro zone debt crisis in 2013.

AT HOME

Sensex and Nifty ended lower by 0.2% and 0.3% respectively, extending the losing streak to third straight day. Sensex settled at 40281, down 82 points while Nifty lost 31 points to finish at 11797. BSE mid-cap and small-cap indices fell 0.4% each. BSE Energy index slipped 1.6%, becoming top loser among the sectoral indices, followed by 1.2% lower Oil & Gas and Healthcare indices. Realty and Telecom indices were the top gainers, up 1% and 0.9% respectively.

FIIs net sold stocks and stock futures worth Rs 2315 cr and 1553 cr respectively but net bought index futures worth Rs 1470 cr. DIIs were net buyers to the tune of Rs 1565 cr.

Rupee appreciated 19 paise to end at 71.73/$.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.9%-1.6%. SGX Nifty is suggesting about 100 points lower start for our market.

In yesterday's report we had said that 11813, the low made Monday was the immediate support, below which, 11614, the bottom made in early February, would be the next support.

Nifty broke 11813 support and went all the way to 11780 before closing at 11797 and is set to open near 11700 today .

11684, where 200-DMA is placed, is the next immediate support, upon breach of which, 11614, the bottom made on 3rd February, would be the next crucial support.

11985 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.