9944 BELOW 10021; 10291 IS IMMEDIATE HURDLE

9944 BELOW 10021; 10291 IS IMMEDIATE HURDLE

WORLD MARKETS

Dow and S & P 500 fell 1.1% and 0.8% respectively while Nasdaq rose 0.3%. Dow snapped six-day winning streak. Dow snapped six-day winning streak ahead of the release of Wednesday's Fed policy statement and the quarterly summary of economic projections, followed by Chairman Jerome Powell’s news conference.

Fed is unlikely to make any major policy changes, with its benchmark rate near zero and the asset purchasing programs continuing. However, markets will be watching for its forecast for the economy and interest rates.

Brent crude rose 27 cents or 0.7%, to $41.11 per barrel while WTI gained 75 cents, or 2%, to settle at $38.94 per barrel.

European markets fell 1.5%-2.1%. Euro zone GDP contracted by 3.1% y-o-y in the first quarter, up from earlier prediction of a 3.2% contraction. On a quarterly basis, the bloc’s economy shrank by 3.6%.

Meanwhile World Bank yesterday said that it expects the global economy to shrink by 5.2%, representing the deepest recession since the World War II.

AT HOME

After rising more than a percent, benchmark indices plunged more than 2% from the top of the day to end lower by 1.2% each, breaking two-day winning streak. Sensex settled at 33956, down 413 points while Nifty lost 120 points to finish at 10046. BSE mid-cap and small-cap indices fell 0.2% and 1% respectively. BSE Telecom index and Bankex tumbled 3.1% and 2.3% respectively, becoming top losers among the sectoral indices while Healthcare and Realty indices were the top gainers, up 1.2% and 0.3% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 491 cr, 226 cr and 973 cr respectively. DIIs were net sellers to the tune of Rs 733 cr.

Rupee depreciated 7 paise to end at 75.61/$.

Hero MotoCorp reported better-than-expected net profit on the back of lower tax expenses while margin, at 10.6%, was in-line with expectation. Management commentary was positive in terms of demand and cost cutting initiatives.

OUTLOOK

Today morning, Hang Seng is up 0.9%, Nikkei is flat while Shanghai is down 0.4%. SGX Nifty is suggesting around 65 points higher start for our market.

In yesterday's report we had said that 10334, the upper end of the gap created by gap-down opening on 12th March, continued to be immediate hurdle and had advised trailing the stop-loss in long positions to 10025.

Nifty, after touching a high of 10291 in the morning session, slipped sharply to 10021 before closing at 10046 and is set to open above 10100 today.

Upon breach of yesterday’s low, i.e. 10021, 9944, the bottom made last Thursday, would be the next support to eye.

10291, the top made yesterday, would work as immediate hurdle.