9104 CONTINUES TO BE IMMEDIATE SUPPORT; 9475 IMMEDIATE HURDLE

9104 CONTINUES TO BE IMMEDIATE SUPPORT; 9475 IMMEDIATE HURDLE

WORLD MARKETS

US indices gained 0.9%-1.4% with Nasdaq turning positive for 2020 as market continues to price in a swift reopening of the U.S. economy.

Data showed Jobless claims last week totaled 3.17 million. More than 33 million Americans have filed for unemployment benefits over the seven-week period ending May 2.

WTI crude fell 44 cents, or 1.8%, to settle at $23.55 per barrel while Brent settled 26 cents lower at $29.46 per barrel.

Main European markets rose 1.4%-1.5%. The Bank of England held interest rates at 0.1% but said it stands ready to take further action should the economic crisis caused by the coronavirus pandemic continue to deteriorate, with U.K. GDP expected to fall by 14% this year.

AT HOME

Sensex and Nifty ended lower by 0.8% and 0.6% respectively after a rangebound but choppy trading session. Sensex settled at 31443, down 242 points while Nifty lost 71 points to finish at 9199. BSE mid-cap and small-cap indices fell 0.5% and 0.1% respectively. Except 1.8% higher Energy index, all the BSE sectoral indices ended in red with Power index leading the losses, down 2.5%, followed by 2.2% lower Utilities and Consumer Durables indices.

FIIs net bought stocks worth Rs 19056 cr (which was mainly on account of GlaxoSmithKline selling its 5.7% stake in HUL for nearly Rs 25500 cr) but net sold index futures and stock futures worth Rs 1628 cr and 2977 cr respectively. DIIs were net buyers to the tune of Rs 3818 cr.

Reliance Industries has announced that the US-based private equity firm Vista Equity Partners will pick up a 2.3% stake in Jio Platform for Rs 11367 cr. The deal is at 12.5% premium over Facebook deal announced in April.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.3%-1.6% and SGX Nifty is suggesting about 60 points higher start for our market.

After Nifty nearly achieved the downside target of 9104 on Wednesday, in yesterday's report we had reiterated the view that 9104, the 33% retracement level of the entire 7511-9889 upmove, continued to be important immediate support while 9475 continued to be immediate hurdle.

Yesterday, Nifty fell 0.6% to close at 9199 and is set to open around 9250 today.

9104, the 33% retracement level of the entire 7511-9889 upmove, continues to be immediate support. IF 9104 gives way, 8909, the bottom made on 21st April, would be the next important support.

9475 continues to be immediate hurdle on the hourly chart, a crossover of which is required for a fresh upmove.

In the US, the Labor Department will release its monthly jobs report today which is expected to show a loss of more than 21 million in April.

Shree Cement will report its quarterly earnings today.