11813 IS THE IMMEDIATE SUPPORT; 12012 IMMEDIATE HURDLE

11813 IS THE IMMEDIATE SUPPORT; 12012 IMMEDIATE HURDLE

WORLD MARKETS

US indices nosedived 3.4%-3.7% as the coronavirus cases outside China surged, stoking fears of a prolonged global economic slowdown. This was the worst fall in 2 years for the Dow and S & P 500, which wiped out 2020 gains for the Dow.

South Korea raised its coronavirus alert to the “highest level” over the weekend, with the latest spike in numbers bringing the total infected to more than 800 — making it the country with the most cases outside mainland China. Outside of Asia, Italy has been the worst affected country so far, with more than 130 reported cases and three deaths.

The benchmark 10-year US note yield fell to 1.369%, putting the key rate close to it all-time low closing around 1.36%. Gold futures jumped 1.7% to around $1,676.60 per ounce to hit its highest level since January 2013.

WTI crude shed 3.65%, or $1.95, to settle at $51.43 per barrel for its worst day since Jan. 8, while Brent crude fell $2.20, or 3.8%, to  $56.30.

European markets tumbled 3.3%-5.4%. German Ifo business climate index for February rose to 96.1 from 96.0 in January, to defy consensus forecasts for a fall to 95.3.

AT HOME

Benchmark indices nosedived 2% to hit 3-week lows as European markets and US futures sank on coronavirus worries as cases outside of China surged over the weekend. Sesnex slipped 806 points to settle at 40363 while Nifty finished at 11829, down 251 points. BSE mid-cap and small-cap indices fell 1.6% each. All the BSE sectoral indices ended in red with the Metal index leading the losses, down 5.7%, followed by 3.3% lower Auto and Telecom indices.

FIIs net sold stocks, index futures and stock futures worth Rs 1161 cr, 1238 cr and 990 cr respectively. DIIs were net buyers to the tune of Rs 516 cr.

Rupee depreciated 27 paise to end at 71.92/$.

OUTLOOK

Today morning, Nikkei and Shanghai are down 3% and 1% respectively while Hang Seng is little changed. US futures are up around a percent. SGX Nifty is suggesting about 50 points higher start for our market.

In yesterday's report we had said that 11990 was the immediate support to eye upon breach of which, 11908, the bottom made last week, would be the next support.

Nifty broke 11990 support and plunged all the way to 11813 before closing at 11829 and is set to open near 11900 today.

11813, the low made yesterday, which roughly coincided with the 67% retracement level of the recent 11614-12247 upmove placed at 11823, is the immediate support to eye. Below 11813, 11614, the bottom made in early February, would be the next support.

12012, the top made yesterday, would act as immediate hurdle.