9085 IS THE IMMEDIATE SUPPORT; 9602 IMMEDIATE HURDLE

9085 IS THE IMMEDIATE SUPPORT; 9602 IMMEDIATE HURDLE

WORLD MARKETS

US indices collapsed 12%-13%, suffering the worst day since the “Black Monday” market crash in 1987, even after the Federal Reserve announced a massive monetary stimulus to curb slower economic growth amid the coronavirus outbreak. Nasdaq Composite had its worst day ever.

Selling accentuated towards the end after President Donald Trump said the worst of the outbreak could last until August. He also told reporters the U.S. “may be” heading into a recession.

U.S. cases oc coronavirus have jumped to 3,774 and 69 deaths, according to Johns Hopkins University.

WTI dropped $3.03, or 9.5%, to settle at $28.70 per barrel while Brent fell 11.2% or $3.80, to settle at $30.05 per barrel.

European markets tumbled 4%-8% with Spain leading the losses. Spain has imposed a 15-day nationwide lockdown, banning its 46 million citizens from all-non essential movement. European Commission president, proposed banning most foreign visitors into Europe for 30 days.

AT HOME

It turned out to be yet another manic Monday as Sensex and Nifty nosedived nearly 8% to close at the lowest level in 30 months and 35 months respectively. Sensex settled at 31390, down 2713 points while Nifty lost 757 points to finish at 9197. BSE mid-cap and small-cap indices slipped 5.9% and 5.7% respectively. All the BSE sectoral indices ended in red with Metal index and Bankex leading the losses, down 9.3% and 8.4% respectively.

FIIs net sold stocks and stock futures worth Rs 3810 cr and 1109 cr respectively but net bought index futures worth Rs 654 cr. DIIs were net buyers to the tune of Rs 2615 cr.

Rupee depreciated 49 paise to end at 74.23/$.

RBI yesterday announced two policy measures to stabilise financial markets: a US dollar sell/buy swap on March 23 worth $2 billion and a Long Term Repo Operation in multiple tranches of up to Rs 1 trillion.

India's February WPI inflation eased to 2.26% from 3.10% in January. Core WPI stood at -0.5% as against -0.9%.

OUTLOOK

Today morning US futures are up more than 3%, Asian markets are trading mixed with modest changes while SGX Nifty is suggesting about 150 points higher start for our market.

In yesterday's report we had said that 9630, 9357 and 9085, the 33%, 50% and 67% retracement levels of Friday's 8555-10160 upmove, were the support levels to eye.

Nifty touched a low of 9165 before closing at 9197 and is set to open above 9300 today.

9602, the top made yesterday, would be the immediate hurdle to eye, upon crossover of which, 10160, the top made on Friday, would be the next major hurdle.

9085, the 67% retracement level of the 8555-10160 upmove witnessed on Friday, is the support to eye. If 9085 gives way, 8555, the bottom made on Friday, would be the next meaningful support.