13131, 13000 ARE SUPPORTS; 13650 IMMEDIATE HURDLE

 

13131, 13000 ARE SUPPORTS; 13650 IMMEDIATE HURDLE

 

WORLD MARKETS

 

After opening with cuts of 1.5%-2% on worries over the new Covid strain in the U.K., US indices saw a sustained recovery through the session which made Dow end 0.1% higher while S & P 500 and Nasdaq ended with cuts of 0.4% and 0.1% respectively.

 

Many European countries implemented travel restrictions on visitors from the U.K.

 

However, many experts, including those from the WHO, said the coronavirus vaccines from Pfizer and Moderna would likely be effective against the new variant and that Covid was mutating at a slower pace than the seasonal flu.

 

Meanwhile, vote on the $900 billion economic relief package, the agreement on which was reached on Sunday night, was expected on Monday night.

 

Brent crude fell $1.85, or 3.5%, to $50.41 a barrel while WTI crude slipped $1.36, or 2.8%, to settle at $47.74 per barrel.

 

Dollar index, after rising to 91.02, slipped to end at 90.04. Sterling sank sharply versus the dollar, falling 1.3% to around $1.3345.

 

European markets fell 1.7%-2.8%, monitoring a fast-spreading new variant of the coronavirus that has shut down much of the U.K.

 

AT HOME

 

Benchmark indices nosedived 3%, suffering the worst fall after 18th May and snapping 6-day winning streak. Sensex settled at 45553, down 1406 points while Nifty lost 432 points to finish at 13328. Nifty mid-cap and small-cap indices plunged 4.8% and 5% respectively. All the BSE sectoral indices ended in red with Metal and Oil & Gas indices leading the losses, down 6% each.

 

FIIs net sold stocks and index futures worth Rs 324 cr and 265 cr respectively but net bought stock futures worth Rs 1521 cr. DIIs were net buyers to the tune of Rs 486 cr.

 

Rupee depreciated 22 paise to end at 73.78/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.3%-0.4% while SGX Nifty is suggesting around 70 points higher start for our market.

 

In yesterday's report we had said that 13773, the top made on Thursday as well as Friday, was the immediate hurdle and had advised trailing stop-loss in long positions to 13580.

 

Nifty broke 13580 support and plunged all the way to 13131 before closing at 13328. The benchmark is set to open near 13400 today.

 

13650 is the immediate hurdle on the hourly chart.

 

13131, the bottom made yesterday, is the immediate support, upon breach of which, 34-DMA, placed around 13000, would be the important support to eye.