RECOVERY IN NIFTY CLOSED ABOVE 8600

Market closed in the green for the third straight session on Thursday as the Nifty ended the March series above 8600 level. The Sensex surged 1,411  points to 29946 while the Nifty was up 323 points at 8641 at close.  FM came out with some announcements in terms of a relief package, which was majorly attributed to poor people and farmers who are facing major problems during lockdown, but there was no major thing, which can boost market sentiment while the market has already rallied significantly in the last 2-3 days in anticipation of some kind of announcements.  The key takeaway is that it (FM’s relief package) will provide a solid support to rural and semi-rural economy due to the high amount of benefit in terms of food, cash in hand and job safety. Regarding the market, it will provide safety to defensive stocks such as staple industries, but does not provide any relief to corporates like banks, hospitality and others. It seems that the majority of the benefits announced is factored in the market given more than 15 % bounce from the recent low.

The recovery of the market will continue if a strict lock down system is implemented in the developed markets and the number of new virus cases reduces There are some signs that we have made a probable bottom around 7550 , as the market has discounted almost the worst-case scenario, but volatility will continue in tandem with global markets where the trend in coronavirus cases globally and locally will dictate the further direction of the market. Technically 8800 -9000 will act as an immediate supply zone, above this Nifty can head towards the 9200 -9500 zone. On the downside, 8200- 8000 has become an immediate and strong support area.

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Resistance: 8800, 9000

Support: 8200, 8000