Let's start with the SGX Nifty which was down about 50 points as of 7:30 AM, so expect a lower start for the Sensex and Nifty today. Moreover, the March series derivative contracts expire today so the session is also likely to be volatile.
A major news investors will track today will be regarding the economic stimulus package. According to reports, the government is likely to agree a stimulus package of more than Rs 1.5 trillion to fight a downturn caused by the coronavirus lockdown. The report said the government has not yet finalised the package and discussions are ongoing and the package could be announced by the end of the week.
Now, Covid-19 has already infected 468,905 people globally and over 600 in India.
Let's move to global markets and see how they fared overnight. In the US, the main indices rallied for a second straight session as the US Senate appeared near a vote on a $2 trillion package to support businesses and households devastated by the coronavirus pandemic. However, the Wall Street trimmed hefty gains late in the session after reports raised doubts about how quickly the bill might pass, although the S&P 500 and Dow Jones Industrial Average still ended up more than 1 per cent and 2 per cent, respectively.
Asian stock markets made a cautious start on Thursday as many investors remained reluctant to call an end to global market’s recent, staggering selloff.
Australia’s ASX 200 index rose 1.5 per cent while Japan’s Nikkei fell 2.2 per cent. Hong Kong futures were 1 per cent higher and China A50 futures were up 0.2 per cent. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.3 per cent.
Oil prices were mixed on Thursday, with the prospect of rapidly dwindling demand due to coronavirus travel bans and lockdowns offsetting hopes a US emergency stimulus. Brent crude futures rose 0.4 per cent to $27.51.
Back home, domestic benchmark indices zoomed up to 7 per cent yesterday to post their biggest one-day gain in terms of percentage. The Sensex rallied 1,862 points and the the Nifty ended 497 points higher.
According to experts, for the near-term, 8,000 will act as a crucial support for Nifty and any short-covering move along with addition of fresh position can be witnessed only if Nifty is able to breach 8,500. Therefore, traders should try to create long position keeping close eye on 8,000.
And, in the end, here's a stock idea by CapitalVia Global Research which recommends buying TCS Limited above Rs 1,750 for the target of Rs 1,880 with stop-loss at Rs 1,680.
Read by: Kanishka Gupta