Nifty 50 index ended higher for the second consecutive session after Finance Minister of India Nirmala Sitharaman announced relief measures to help India’s poor with the cash transfers, and food distribution. Meanwhile, the number of confirmed coronavirus cases climbed to 650, and the death toll rose to 13.
On Tuesday Prime Minister Modi ordered a 21-day lockdown across the country to protect India’s 1.3 billion citizens from the coronavirus outbreak. Many analysts expect that the impact on economic growth will be “severely” as the coronavirus lockdown will cause significant disruption across multiple sectors, including manufacturing, travel, oil, banking, among others.
The probability around the globe of countries entering into deep recession with high unemployment rates and companies bankruptcies have increased, and India will also be affected by the global meltdown.
Nifty 50 is 3.74% higher at 8,630 as the index managed to rebound from 2016 lows. Nifty 50 index has lost almost 40% since the January highs. The technical outlook is bearish, and lower levels might be on the cards despite the two days rebound amid creasing volatility.
The first resistance for Nifty 50 stands at 8,749 today’s top. The next hurdle will be met at 8,870. If the rebound continues, the next resistance level stands at 9,142 the high from March 18th.
On the contrary, Nifty 50 immediate support will be met at 8,304 today’s low while the low from yesterday at 7,726 would provide a strong demand zone. If bears breach that level next support stands at 7,476 the four-year lows.