9599 IS THE NEXT SUPPORT; 10120 IMMEDIATE HURDLE

9599 IS THE NEXT SUPPORT; 10120 IMMEDIATE HURDLE

WORLD MARKETS

US indices nosedived 5.3%-6.9%, suffering their worst fall in three months, on fears over a second wave of coronavirus cases as U.S. states push deeper into reopening. The S&P 500 logged in its first three-day losing streak since early March.

Several U.S. states that were among the first to reopen from lockdown have reported surges in cases and hospitalizations, including Texas, Florida, California and Arizona.

WTI oil slipped 8.2%, or $3.26, to $36.34 per barrel while Brent crude slid 7.7%, or $3.22, to trade at $38.51 per barrel.

On the flip side, traditionally safer assets such as bonds and gold rose. The 10-year Treasury note yield dropped to 0.66% and hit its lowest level in more than a week. Gold futures jumped 1.1% to $1,740 per ounce.

European markets tumbled 4%-5%.

AT HOME

Benchmark indices nosedived 2.1% each, suffering the worst fall in more than 3-weeks and closing at the lowest level since 1st June. Sensex lost 708 points to settle at 33538 while Nifty finished at 9902, down 214 points. BSE mid-cap and small-cap indices fell 1.4% and 1% respectively. All the BSE sectoral indices ended in red with Telecom index leading the losses, down 4%, followed by 2.8% lower Metal index and Bankex.

FIIs net sold stocks, index futures and stock futures worth Rs 805 cr, 923 cr and 798 cr respectively. DIIs were net sellers to the tune of Rs 874 cr.

Rupee depreciated 20 paise to end at 75.78/$.

Telecom and Banking stocks fell after the Supreme Court said that it can't allow staggered payout of AGR dues without securing government dues and also asked private telecom operators such as Bharti Airtel, Vodafone Idea, et al to file affidavits giving details as to how they will pay these dues. Supreme Court will next hear the AGR case on June 18.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.8%-2% and SGX Nifty is suggesting around 250 points lower start for our market.

In yesterday's report we had reiterated the view that 10021, the low made Tuesday, continued to be immediate support, upon breach of which, 9944, the bottom made last Thursday, would be the next support to eye.

Nifty broke 10021 support and plunged all the way to 9885 before closing at 9902 and is set to open below 9700 today.

9599, the lower end of the gap created by big gap-up opening on 1st June, which roughly coincides with the 50% retracement level of the recent 8806-10328 upmove, would be the support to eye after today's gap-down opening.

10120 is the immediate hurdle on hourly chart, with the stop-loss of which, trading shorts can be held on to.

Hindalco, M & M and Eicher Motors will report their quarterly earnings today.