8883 ABOVE 8377; 7714, 7511 ARE SUPPORTS

8883 ABOVE 8377; 7714, 7511 ARE SUPPORTS

WORLD MARKETS

After gaining more than 5%, DJIA and S & P 500 slipped in last hour of trade to end higher by 2.4% and 1.2% respectively while Nasdaq ended with cut of 0.4%.

Initial surge happened after White House and Senate agreed on a $2 trillion coronavirus stimulus bill early Wednesday morning. But a tweet from Sen. Bernie Sanders that "Unless Republican Senators drop their objections to the coronavirus legislation, I am prepared to put a hold on this bill until stronger conditions are imposed on the $500 billion corporate welfare fund" spooked the markets towards the session end.

Brent crude rose 29 cents, or 1%, to $27.44 per barrel while WTI gained 48 cents, or 2%, to settle at $24.49 per barrel, extending the rising streak to third consecutive day.

European markets gained 1.7%-4.5%. Germany's Ifo business climate index fell to 86.1 in March, lower than expectations of 87.7 and down from 96.0 in February and marking since the country’s reunification in 1990. UK CPI inflation for February fell to 1.7% from 1.8% in January.

AT HOME

Sensex and Nifty soared 7% and 6.6% respectively, marking their biggest single-day gain after 18th May 2009. Sensex settled at 28535, up 1861 points while Nifty finished at 8317, up 516 points. BSE mid-cap and small-cap indices gained 3.5% and 2.8% respectively. All the BSE sectoral indices ended higher with Energy index leading the tally, up 10.2%, followed by 8.6% higher Finance and Bankex indices.

FIIs net sold stocks and index futures worth Rs 1893 cr and 45 cr respectively but net bought stock futures worth Rs 547 cr. DIIs were net buyers to the tune of Rs 738 cr.

OUTLOOK

Today morning, Nikkei is off 4% while Hang Seng and Shanghai are off 0.7% and 0.3% respectively. SGX Nifty is suggesting about 50 points lower start for our market.

After Nifty rebounded from our indicated 7500 support on Tuesday, in yesterday's report we had said that the immediate hurdle on the hourly chart had moved lower to 8365.

Nifty, after touching a high of 8376, eased a bit to end at 8317 and is set to open near 8250 today.

8377, the top made yesterday, is the immediate hurdle, a crossover of which will confirm a "buy" on hourly chart after a long while and would pave the way for further upmove. 8883, the top made on Friday, would be the next upside target if that happens.

7715, the low made yesterday, is the immediate support below which 7511, the bottom made on Tuesday, would be the next crucial support.