8555 IS THE NEXT SUPPORT; 9602 IS IMMEDIATE HURDLE

8555 IS THE NEXT SUPPORT; 9602 IS IMMEDIATE HURDLE

WORLD MARKETS

US indices soared 5.2%-6.2% on hopes of fiscal stimulus to cushion the economy from the blow of the coronavirus.

Reports suggested that the Trump administration is weighing a fiscal stimulus package of more than $1 trillion that includes direct payments to Americans.

Earlier, Treasury Secretary Steven Mnuchin told reporters that corporations will be able to defer tax payments of up to $10 million while individuals could defer up to $1 million in payments to the Internal Revenue Service. Mnuchin also said President Donald Trump authorized the deferral of $300 billion in IRS payments.

Treasury yields jumped, with the 10-year U.S. rate breaking back above 1% on news of the big stimulus plan.

Brent crude fell 98 cents, or 3.2% to $29.07 per barrel while WTI shed $1.75, or 6.1%, to close at $26.95 per barrel, its lowest level since Feb. 2016.

European market rose 2.2%-2.8%. A survey from the ZEW economic research institute Tuesday showed that euro zone economic sentiment plummeted in March, falling to -49.5 from +10.4 in February.

AT HOME

After gaining more than 2% in the initial trade, benchmark indices nosedived nearly 5% from the top of the to end lower by 2.5%, with Sensex and Nifty closing at 34-month and 3-year low respectively. Sesnex settled at 30579, down 810 points while Nifty lost 230 points to finish at 8967. BSE mid-cap and small-cap indices ended with cuts of 1.8% and 2.3% respectively. Except 1.2% higher FMCG index, all the BSE sectoral indices ended in red with Bankex and Finance indices leading the losses, down 4.5% and 4.4% respectively.

FIIs net sold stocks worth Rs 4045 cr but net bought index futures and stock futures worth Rs 859 cr and 1354 cr respectively. DIIs were net buyers to the tune of Rs 3422 cr.

Rupee depreciated 3 paise to end at 74.26/$.

OUTLOOK

Today morning, Hang Seng is marginally lower while Nikkei and Shanghai are up 1.5% and 0.6% respectively. US futures are down nearly 3%. SGX Nifty is suggesting about 100 points higher start for our market.

In yesterday's report we had said that 9085, the 67% retracement level of the 8555-10160 upmove witnessed, was the support to eye below which, 8555, the bottom made on Friday, would be the next meaningful support.

Nifty, after touching a low of 8915, closed at 8967 and is set to open somewhat higher today.

8555, the bottom made last week, continues to be the next meaningful support.

9602, the top made on Monday, continues to be immediate hurdle, upon crossover of which 10159, the top made on Friday, would be the next major hurdle.