NIFTY RETREATS FROM 9390 HURDLE; 9025 IS IMMEDIATE SUPPORT

NIFTY RETREATS FROM 9390 HURDLE; 9025 IS IMMEDIATE SUPPORT

WORLD MARKETS

Dow and S & P 500 climbed 1.5% each while Nasdaq rose 1.1% as a partial reopening of the economy — in Alaska, Georgia, South Carolina, Tennessee, Texas and others —  boosted sentiment.

WTI crude for June delivery nosedived 24.6%, or $4.16, to settle at $12.78 per barrel while Brent fell 6.8% to settle at $19.99 on fears that worldwide storage will soon fill as a result of weak demand caused by the coronavirus pandemic.

European markets surged 1.8%-3.1%.

AT HOME

After rising nearly two and a half percent in the morning, benchmark indices lost nearly a percent from the top of the day later to end higher by nearly 1.4%. Sensex settled at 31743, up 415 points while Nifty added 127 points to finish at 9282. BSE mid-cap and small-cap indices too gained 1.4% each. Except 0.3% lower Power index, all the BSE sectoral indices ended in green with Bankex and Finance indices leading the tally, up 2.9% and 2.1% respectively.

FIIs net sold stocks and stock futures worth Rs 916 cr and 298 cr respectively but net bought index futures worth Rs 1548 cr. DIIs were net buyers to the tune of Rs 1142 cr.

Rupee appreciated 21 paise to end at 76.24/$.

To ease liquidity pressures on mutual funds, Reserve Bank of India announced a special liquidity facility of ₹50,000 crore for mutual funds.

Indusind Bank reported mixed set of numbers as NII was better-than-expected while slippages and gross NPAs rose sequentially. NII rise 10.8% to Rs 3231 cr Y-o-Y . Net profit fell 77% to Rs 302 cr. Net Interest margin hit all-time-high at 4.25%. Gross NPA ratio rose to 2.45% from 2.18% while net NPA ratio improved to 0.91% from 1.05%. Loan growth stood at 11% Y-o-Y. Provisions rose to Rs 2440 cr from Rs 1043 cr Q-o-Q and slippages rose 5.8% to Rs 2058 cr from Rs 1945 cr.

OUTLOOK

Today morning, Asian markets are trading with modest cuts while SGX Nifty is suggesting a modestly higher start for our market.

In yesterday's report we had reiterated the view that, 9390, continued to be important immediate resistance, a crossover of which is required for a fresh upmove.

Nifty, after touching a high of 9377, slipped to end at 9282 and is set to open near 9300 today.

9390, the top made last week, which exactly coincided with the 38.2% retracement level of the entire 12430-7511 fall, continues to be important immediate resistance, a crossover of which is required for a fresh upmove. If that happens, 9600, where an upwards sloping trendline adjoining recent tops on daily chart is placed, would be the next target/resistance to eye.

On the way down, 9025 is where a trendline adjoining recent bottoms on the hourly chart lands support. Below 9025, 8909, the low made last week, would be next important support.

Axis Bank will report its quarterly earnings today.