9390 ABOVE 9134; TRAIL STOP-LOSS TO 8700

9390 ABOVE 9134; TRAIL STOP-LOSS TO 8700

WORLD MARKETS

US indices climbed 2.4%-4% yesterday on signs that the coronavirus pandemic is easing.

President Donald Trump, at a press briefing indicated that said “The plans to reopen the country are close to being finalized,....as certain states are in a much different condition and are in a much different place than other states."

New York Governor said that deaths related to the virus in the state are leveling off.

Amazon surged to an all-time high as investors bet on increased demand amid the nationwide shutdown.

WTI crude plunged 10.3% to $20.11 per barrel while Brent fell $2.14, or 6.7% to $29.60 as historic production cuts that OPEC+ agreed to over the weekend were overshadowed by the coronavirus pandemic's impact on global demand.

Gold soared nearly 2% to $1746.50 an ounce, hitting its highest since late 2012.

In Europe, FTSE fell 0.9% while DAX and CAC rose 1.2% and 0.4% respectively. Spain allowed some construction and manufacturing sites and to reopen Monday and Italy is also allowing some businesses to reopen Tuesday as the number of new infections and daily deaths has declined.

International Monetary Fund warned that the global economy is set to see its worst financial crisis since the Great Depression. IMF projects global economy to contract by 3% in 2020 as against a growth of 2.9% in 2019.

On Monday, Dow and S & P 500 fell 1.4% and 1% respectively while Nasdaq rose 0.5% on Monday.

China reported its exports and imports data for March, which was better then expected. Exports fell 6.6% y-o-y hile imports slipped 0.9%. Trade surplus stood at $19.9 bn, the expected figure being $18.55 bn.

AT HOME

After trading within previous day's range through the session, Sensex and Nifty ended lower by 1.5% and 1.3% respectively. Sensex settled at 30690, down 470 points while Nifty lost 118 points to finish at 8993. BSE mid-cap and small-cap indices fell 0.9% and 0.5% respectively. BSE Realty and Consumer Durables indices tumbled 4.9% and 3.7% respectively, becoming top losers among the sectoral indices while Telecom and Capital Goods indices were the top gainers, up 4.8% and 3.6% respectively.

FIIs net sold stocks and index futures worth Rs 1244 cr and 475 cr respectively but net bought stock futures worth Rs 382 cr. DIIs were net sellers to the tune of Rs 1097 cr.

Rupee closed at 76.27/$, appreciating 1 paise compared to previous close.

Prime Minister Narendra Modi announced extension of nationwide lockdown till May 03.

IMF cut India's growth forecast by 390 bps to 1.9% for FY21 Vs 4.2% in FY20. Growth outlook for FY22 was revised upwards by 90 bps to 7.4%.

OUTLOOK

Today morning, Asian markets are trading mixed with modest changes. SGX Nifty is trading around 9215, suggesting about 200 points higher start when compared to Monday's close of Nifty futures.

In Monday's report we had reiterated the view that 9134, the 33% retracement level of the entire 12430-7511 fall, continued to be immediate hurdle, upon crossover of which, 9390, the 38.2% retracement level of 12430-7511 fall, would be the next target/resistance to eye.

Nifty, after touching a high of 9112 in the initial trade, slipped to end at 8993 and is set to open above the 9134 hurdle today.

9390, the the 38.2% retracement level of 12430-7511 fall, would be the next target/resistance to eye once Nifty sustains above 9134 hurdle.

8700, the low made last Wednesday, would now act as immediate support, with the stop-loss of which, trading longs can be held on to.

Wipro will announce its quarterly earnings today.