Friday 30 October 2015

Market Mantra: Nifty Fut (Nov) Update

All eyes will be on the BOJ today----


SGX NF: 8123 (CMP)

NSE NF: 8142 (LTP)

As par early morning indication NSE NF may open around 8125-8140 zone, following tepid overnight US market. But now Dow Fut is trading comfortably in positive zone in around +0.5%.

Yesterday's US GDP was in line with market estimates and came at 1.5% (against 1.6% estimate & prior 3.9%). That was largely USD neutral.

Globally, all eyes will be on the BOJ announcement shortly today for any extension of QQE.
As par reports, BOJ may even consider to buy equity along with Govt bonds to stimulate Japan's economy. 

For NF, technically, 8090-8055 is a good support zone followed by 8010-7975 zone.

On the upside, sustain over at lest 8140-8180 may attract 8210-8250 followed by 8285-8365 area in the next few days.

Fear of Fed lift off in Dec has spooked our market to some extent yesterday amid expiry related volatility. Asset slippage (NPA/NPL) concerns for Axis bank also spilled over other private banks including ICICI and some PSBS also (SBI/PNB etc).

But, going forward, even if Fed decides for token lift off in Dec  to counter growing criticism, there is enough global liquidity amid dovish ECB/BOJ/PBOC. As par reports, there is a net inflow of around $35 bn in the EM/DM EQ market for the last few months.  




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