8822, 8700 BELOW 8909; 9044-9230 IS THE RESISTANCE ZONE

8822, 8700 BELOW 8909; 9044-9230 IS THE RESISTANCE ZONE

WORLD MARKETS

US indices tumbled 2.7%-3.5%, extending Monday's fall, as oil prices continued their unprecedented wipeout, further denting market sentiment.

WTI June cotract slipped 43.4% to settle at $11.57 per barrel while  Brent crude fell 24.4% to $19.33 per barrel.

IBM slipped 3% after reporting a 3.4% Y-o-Y decline in revenue in the first quarter amid the spread of coronavirus. Salesforce and Oracle both fell more than 4% after IBM said its software and global business segments suffered from strong headwinds in the last two weeks of March due to the virus.

Meanwhile, Senate struck a deal on a $484 billion relief package for small businesses, hospitals and testing.

European markets fell 3%-3.8%. Data from UK showed growth in the number of people employed fell to 0.8% in last month, from 1.1% in February.

AT HOME

After a big gap-down opening, benchmark indices lost some more through the session to end with deep cuts of 3%, marking the biggest daily fall since 1^st April. Sensex settled at 30636, down 1011 points while Nifty finished at 8981, down 280 points. BSE mid-cap and small-cap indices fell 2.7% and 3% respectively. Except  1.7% and 1.3% higher Telecom and Healthcare indices, all the BSE sectoral indices ended in red, with Bankex and Metal indices leading the losses, down 5.5% and 5.3% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 2095 cr, 1071 cr and 684 cr respectively. DIIs were net sellers to the tune of Rs 68 cr.

Rupee depreciated 30 paise to end at 76.83/$.

Facebook will invest $5.7 bn or Rs 43574 cr to pick up a stake in Reliance Jio. This will make Facebook the largest minority shareholder in Jio platforms.

ACC reported better-than-expected numbers on all counts except revenue. Revenue fell 11.1% y-o-y to Rs 3501 cr, EBITDA was up 6.3% at Rs 586 cr, margin improved 273 points to 16.74% while profit fell 6.6% to Rs 323 cr.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.2%-1.4% and SGX Nifty is suggesting about 60 points lower start for our market.

Readers would recall that after Nifty achieved 9134 target, we had been working with next target/resistance of 9390, the 38.2% retracement level of the entire 12430-7511 fall. We had also advising trailing stop-loss in long positions to 8930 in yesterday's report.

Nifty, after hitting 9390 target/resistance on Monday, reversed and touched a low of 8909 yesterday before closing at 8981 and is set to open near yesterday’s low today.

Below yesterday’s low, i.e. 8909, 8822, followed by 8700, which are the bottoms made on 16^th and 8^th April respectively, would be next downside supports/targets to eye.

9044-9230, the gap created by yesterday’s gap down opening, will now act as the resistance zone.