The Indian market (Nifty Fut/India-50) is currently trading around 10930.00 early Tuesday, slumped by almost -0.35% on subdued global cues amid renewed US-China cold/trade war tensions. As per reports, the US will proceed with extradition request for the arrested Huawei executive in Canada. The arrested Huawei CFO Meng is being detained on charges related to Huawei "allegedly stealing trade secrets from U.S. business partners, including the technology for a robotic device called "Tappy" that T-Mobile US used to test smartphones”.
Nifty jumped Monday on hopes of a rate cut, mixed global cues and led by exporters on higher USD; RIL and techs helped:
The Indian market (Nifty Fut/India-50) closed around 10964.50 Monday, jumped by almost +0.34% on mixed global cues after a stable and expected set of economic data from China (GDP, Industrial productions and retail sales) coupled with growing optimism about the US-China trade truce progress and RBI rate cuts.
But Early Monday, the “risk-on” trade was under some stress on a report that despite growing optimism story about the US-China trade truce progress, on the vital issue of IP protection, there is absolutely no progress as reported by the US Treasury to the US Congress. China officials have denied such IP theft allegation and asked the US for proof.
Subsequently, the US future SPX-500 dropped over -0.30%, while Europe also slumped around -0.40%. But China and Hong Kong recovered from an earlier slump on a stable set of economic data and hopes of China stimulus as ultimately China’s 2018 GDP came at +6.60%, the lowest in last 28-years.
Technical View (Nifty, Bank Nifty, USDINR):
Technically, whatever may be the narrative Nifty Fut-I (NF) has to sustain over 11075 for a further rally to 11130*/11205-11245/11315 and 11405/11495-11620/11785-11825 in the near term (under bullish case scenario).
On the flip side, sustaining below 11050-11010, NF may fall to 10900*/10840-10800/10750 and 10660/10575-10500/10350 in the near term (under bear case scenario).
Technically, Bank Nifty Fut-I (BNF) has to sustain over 27800 for a further rally to 27880*/27945-28175/28410 and 28465/28550-28800/29100 in the near term (under bullish case scenario).
On the flip side, sustaining below 27750-27650, BNF may again fall to 27400*/27200-27050/26700 and 26400/26250-26000/25700 in the near term (under bear case scenario).
Technically, USDINR (spot) has to sustain over 70.80 for a further rally to 71.50/71.75*-72.00/72.75 and 73.05/74.00-74.50/76.05 in the near term (under bullish case scenario).
On the flip side, sustaining below 70.45, USDINR may fall to 70.10/69.75*-69.10/68.45 and 67.85/66.95-66.40/65.70 in the near term (under bear case scenario).
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