Coronavirus impact continues on the market. Market closed near 8% down as moves by central banks across the globe to cut interest rates failed to calm nerves due to coronavirus pandemic on the global economy. The US Federal Reserve slashed interest rates in its second emergency move this month, while its major peers offered cheap US dollars in a bid to prevent global lending markets from collapsing. Reserve Bank of India governor is scheduled to hold a press conference later in the day with many market participants expecting a rate cut. Nifty closed down 7.61% at 9197 while the Sensex settled 7.96% lower at 31390.Major concern is about the steps being taken to contain the virus spread by the government; stimulus is not something that is enough to calm nerves right now. The index has formed a large bearish Belt Hold candle on the daily chart along with a Popgun bar pattern. This makes the high of today 9600 will work as resistance level now. Unless the level gets taken out the index can get into a consolidation mode now. We recommend that one should trade carefully and avoid risky unhedged positions. For the coming session, immediate resistance would be seen at 9600-9700 and a sustainable move beyond this would extend this rally towards 10000. On the flipside, 9000-8800 are likely to act as strong support level.
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Resistance: 9600, 9800,
10000
Support: 9000,
8800, 8600
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