Technically, NF (LTP:8122; SGX NF:8080) has strong support zone of around 8040 (below 8105-8095). Sustain below 8040, it may target 8000-7970-7940 area. Consecutive closing below 7940, there is not so much hope & NF may crash up to 7740 zone in the next few days.
On the upside, NF has to sustain above 8095-8119 for an immediate target of 8189-8254-8352-8400 zones in the next trading sessions. As, technically, NF is extremely oversold, some short covering might be expected after gap down opening today.
NF rally on last Monday again proved a "Dead Cat Bounce" after yesterday's crash amid various excuses ranging from Salman fiasco (Circulation of Funds of HNI from Market-Real Estate-Film Industry),Algo Trading,Crude Oil Price, forthcoming massive China IPO, earnings downgrade, probability of weak monsoon, slow pace of reforms, GST & Land bills passage issue in RS, falling INR, fresh tax on subsidy in the finance bill & last of all uncertainty about MAT issue.
As par reports, although there is interim stay (on further recovery proceedings by the IT Dept) granted on pure technical issues on Aberdeen MAT petition by the Mumbai HC, the HC has not even admitted the writ petition and actual hearing for the same may take place on June'8. Status of the other FPI(s) MAT petition on similar grounds is still pending, although yesterday it was supposed to be listed for preliminary hearing. May be, the same will be taken shortly by the Mumbai HC and all such similar cases will be clubbed for common hearing on June'8 or there after.
On Monday, some FPI(s) discussed the uncertainty caused by MAT issue during a concall organised by Deloitte (An Audit & Consultancy Firm). Many FPI(s) may intervene in the Castleton case pending in SC or in Mumbai HC (Writ Petition) or in both for a quick resolution. FPI(s) are highly disappointed by the apparent Govt. inaction for this MAT issue which might have significant bearings on our market & Govt's ambitious disinvestment target as a result of which the whole "Shinning India under Modinomics" theme may be in jeopardy.
The only solution lies in a quick resolution of this MAT issue by the Govt (either directly or through Courts) before its too late & too little.
Bottom Line (Positional Cyclical Trading Levels):
| Gap Up/Dw | (Indicative) | |||||||
| SGX NIFTY | 8122 | 42 | ||||||
| NF-APR | LTP | 8080 | ||||||
| SL (+/-) 10 POINTS | FROM SLR | |||||||
| Intraday Swing | Trader | |||||||
| T1 | T2 | T3 | T4 | T5 | SLR | |||
| Strong > | 8060 | 8095-8119 | 8146-8189 | 8218-8254* | 8284-8306 | 8336-8352 | <8040 | |
| Weak < | 8040 | 8018-8000* | 7940-7900 | 7817-7740* | 7659-7509 | 7472-7440 | >8060 | |
| FOR | Conservative | Positional | Trader | |||||
| T1 | T2 | T3 | T4 | T5 | SLR | |||
| Strong > | 8060 | 8119 | 8189 | 8254* | 8306 | 8352-8398 | <8040 | |
| Weak < | 8040 | 8000* | 7900 | 7740* | 7509 | 7440 | >8060 | |
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