9350 ABOVE 9131; TRAIL STOP-LOSS TO 8420

9350 ABOVE 9131; TRAIL STOP-LOSS TO 8420

WORLD MARKETS

Dow and S & P 500 climbed 3.4% each while Nasdaq rose 2.6% after Sen. Bernie Sanders dropped out of the presidential race, and on hopes that the coronavirus outbreak may soon turn a corner.

Saders cleared the path for former vice president Joe Biden, who is seen as more market-friendly, as the Democratic candidate for the Presidential race. Sanders, on the other hand, is highly critical of corporate America, and his agenda — including Medicare-for-all, tuition-free public college and a wealth tax — raised fears of higher taxes and regulations.

Meanwhile, the number of daily increases in coronavirus cases in the US has fallen since Friday, according to data from Johns Hopkins University. Daily increases in global cases have also fallen since then.

WTI crude jumped 6.2% to $25.09 a barrel while Brent gained 3% to settle at $32.84 per barrel after on news that the oil minister of Algeria said OPEC and its allies would discuss a massive cut that could reach 10 million barrels per day at its virtual meeting on Thursday.

In Europe, FTSE and DAX cell 0.5% and 0.2% respectively while CAC rose 0.1%.

AT HOME

It was a day of consolidation after yesterday's mammoth upmove as benchmark indices, after gaining nearly 4% in first hour, gave away all the gain later to end with cuts of nearly half a percent. Sensex settled at 29893, down 173 points while Nifty lost 43 points to finish at 8748. BSE mid-cap and small-cap indices however gained 1.9% each. BSE Healthcare index climbed 3.8%, becoming top gainer among the sectoral indices, followed by 1.9% higher Auto index. Realty and Consumer Durables indices were the top losers, down 1.6% and 1.5% respectively.

FIIs net bought stocks worth Rs 1943 cr but net sold index futures and stock futures worth Rs 413 cr and 1167 cr respectively. DIIs were net sellers to the tune of Rs 1758 cr.

Rupee depreciated 74 paise to end at 76.37/$.

OUTLOOK

Today morning, Hang Seng and Shanghai are up half a percent each while Nikkei is off half a percent. SGX Nifty is suggesting about 150 points higher start for our market.

In yesterday's report we had said that 9039, the top made on 27th March, continued to be major resistance, upon crossover of which, 9300, where an upward sloping trendline adjoining recent tops on the hourly chart was placed, would be the next hurdle to eye.

Nifty crossed 9039 and surged all the way to 9131, but reversed from there to close at 8748 and is set to open near 8900 today.

9131, the top made yesterday, also coincided with the 33% retracement level of the entire 12430-7511 fall and hence is the immediate hurdle to eye. Above 9131, the upward sloping trendline adjoining recent tops on daily/hourly chart, which has now moved to around 9350, would be the next target/resistance to eye.

Immediate support on the hourly chart has moved up to 8420, with the stop-loss of which, trading longs can be held on to.