Looking at the Chart, BNF (LTP:18560) has immediate support of around 18400-18200 zone and it has to sustain above 18700 area for an immediate target of 18900-19100 zone. Consecutive closing above 19100, near term target may be 20500-20700-20900-21000 under bull market scenerio (high probability as of now).
On the flip side, sustain below 18200, BNF may again fall to 18000-17700 area. Consecutive closing below 17700, it may crash to 17500 zone & sustain below that 17200-17000 zone may be the target in the worst case bear market scenerio (low probability as of now).
Bottom Line (Positional Cyclical Trading Levels):
17500-17700-18000-18200-18400-18700-18900-19100-19250-19600-
20100-20500-20700-20900-21000
As par recent reports by various analysts, including BOA-ML, probability of another rate cut @0.25% is quite high on June'2 (scheduled RBI policy date). As per preconditions, various banks are cutting their respective base rate in alignment of earlier rate cuts @0.50% and despite unseasonal rains, food inflation has not picked up. Market will also watch PSU Bank results keenly in the coming days, specially for the cues on NPA front. Also there is an over hang issue of appointments of vacant top posts in various PSU Banks and effective & quick decision making process.
Yesterday's STAY order by Mumbai HC in the MAT issue (Aberdeen) may bring some relief in our market. Although, there are some technical issues as Aberdeen case is involved with final assessment order (FAR) without going through draft assessment order (DAR) by the IT Dept. Other FII(s) MAT issue is involved with DAR and technically it may be routed through DRP for FAR before approaching HC. But fundamental question of law is more or less similar in all the cases & HC may take the remaining cases today. Any STAY on further recovery proceedings by the IT Dept may bring a massive short covering rally in our market. Ultimately all eyes will be on SC in the similar issue of Castleton, which is expected to be heard in June-July and all the present MAT cases may also be referred to SC for an out of turn hearing, being similar in nature & involved substantial questions of laws.
Also, possible passage of GST & Land (??) Bills in LS/RS may be another drivers of our market in the days ahead.
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