8300, 8020 SUPPORTS TO EYE; 9300 IS THE IMMEDIATE HURDLE

8300, 8020 SUPPORTS TO EYE; 9300 IS THE IMMEDIATE HURDLE

WORLD MARKETS

US indices tumbled 4.7%-6.3%, with the Dow closing below 20,000 mark for the first time since February 2017. This was after a steep rebound of nearly 5% from the bottom of the day in last hour or so which happened after the Senate obtained the votes to pass a coronavirus relief plan to expand paid leave.

WTI crude collapsed 24.4%, or $6.58, to settle at $20.37 per barrel, its lowest level since Feb. 2002. Brent shed 14.1%, or $4.07, to trade at $24.67, its lowest level since 2003.

The 10-year Treasury yield jumped to 1.21% yesterday after trading around 0.77% midday Tuesday before details of the potential stimulus emerged.

European markets fell 4%-5.9%. The European Central Bank announced a new Pandemic Emergency Purchase Programme that will use €750 billion (approx. $821 billion) to purchase securities to help support the European economy.

AT HOME

Bloodbath on the street continued as Sensex and Nifty plunged 5.6% each to close at the lowest level in 3 years and 38 month respectively. Sensex settled at 28869, down 1710 points while Nifty finished at 8468, down 498 points. Nifty mid-cap and small-cap indices tumbled 5.5% and 6.2% respectively to close at the lowest level in 4-year and 6 years respectively. All the BSE sectoral indices ended in red with Telecom and Finance indices leading the losses, down 9.5% and 7.6% respectively.

FIIs net sold stocks worth Rs 5085 cr but net bought index futures and stock futures worth Rs 300 cr and 1247 cr respectively. DIIs were net buyers to the tune of Rs 3636 cr.

Rupee ended unchanged at 74.26/$.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.2%-1.5% and SGX Nifty is suggesting about 200 points lower start for our market.

In yesterday's report we had said that 8555, the bottom made last week, continued to be the next meaningful support.

Nifty, after achieving 8555 target, went further to touch a low of 8407 before closing at 8468 and is set to open near 8300 today.

8300, where a trendline adjoining bottoms made in December 2011 and August 2013 is placed, is the next support to eye. Below 8300, 8020, where 500-week moving average is placed, would be the next crucial and major support.

Immediate hurdle on the hourly chart has moved lower to 9300.