8015 BELOW 8185; 8678 IS THE IMMEDIATE HURDLE

8015 BELOW 8185; 8678 IS THE IMMEDIATE HURDLE

WORLD MARKETS

US indices gained 1.7%-2.3% as energy stocks soared following record rise in oil on hopes of a truce between Saudi Arabia and Russia to cut oil output.

WTI surged 24.7% to $25.32 per barrel, for its largest single-day percentage gain in history after Saudi Arabia called for an emergency meeting of oil producers, while U.S. President Donald Trump said he expected Saudi Arabia and Russia to cut output by as much as 10 million to 15 million barrels a day. Brent crude jumped 17.8%, or $4.40, to $29.14 per barrel.

Meanwhile, initial claims for unemployment benefits last week rose to 6.65 million, exceeding the top end of estimates at 5.25 million.

Main European markets rose 0.3%-0.5%

On Wednesday, US indices plunged 4.4% each after a dire warning on the U.S. death toll from the coronavirus. President Donald Trump warned Americans to brace for “one of the roughest two or three weeks we’ve ever had in our country." The White House is projecting that 100,000 to 240,000 people in the U.S. could die from COVID-19.

Economic data on Wednesday showed U.S. manufacturing activity contracted less than expected in March, but disruptions caused by the coronavirus pandemic pushed new orders received by factories to an 11-year low. Private jobs fell by 27,000 last month, the first decline since September 2017, the ADP National Employment Report showed.

AT HOME

Tuesday's rebound proved deceptive as benchmark indice nosedived 4% each on Wednesday, giving away more than they had gained yesterday. Sensex settled at 28265, down 1203 points while Nifty lost 343 points to finish at 8253. BSE mid-cap and small-cap indices fell 2.2% and 1.2% respectively. All the BSE sectoral indices ended in red with IT and Teck indices leading the losses, down 5.5% each.

FIIs net sold stocks, index futures and stock futures worth Rs 1117 cr, 1197 cr and 23 cr respectively. DIIs were net sellers to the tune of Rs 450 cr.

IHS Markig India March Manufacturing PMI fell to 51.8 from 54.5 in February.

March auto sales were dismal. Hero Moto's total sales slip 42.4% to 3.35 lk units. TVS Motors' total sales fell 55.5% to 1.44 lk units. Marti Suzuki's March sales fell 47% y-o-y to 83792 units. Ashok Leyland reported 90% dip at 2179 units. Eicher Motors' total VECV sales fell 82.7% to 1499 units. M & M march auto sales slipped 88% y-o-y to 7401 units whil tractor sales were down 31% at 13613 units. Escorts' total sales fell 54.3% to 5444 units.

RBI announced more measures to counter the economic fallout of the coronavirus pandemic. The apex bank extended the realisation period of export proceeds, increased WMA (Way and Means Advances) limit and said that capital conservation buffer may not be activated for a year.

OUTLOOK

Today morning, Nikkei is up nearly a percent while Hang Seng and Shanghai are off 0.8% and 0.4% respectively. US futures are down about half a percent. SGX Nifty is suggesting about 30 points lower start for our market.

In Wednesday's report we had said that 9039, the top made last Friday, continued to be upside hurdle to eye while 8185 continued to be immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

Nifty, after touching a low of 8198, closed at 8253 and is set to open near 8200 today.

8185 continues to be immediate support, a breach of which will confirm a sell on the hourly chart and would pave the way for further correction. 8015, the 67% retracement level of the recent 7511-9039 upmove, would be the next downside target/support if that happens. Below 8015, 7715 would be the next support to eye.

8678, the top made on Tuesday, is now the immediate hurdle, upon crossover of which, 9039, the top made last week, would be the next major hurdle.

Trading longs should be exited if Nifty trades below 8185.