Draghi is almost determined to bring EUR to parity and is ready for more QE !!
Further Pre-Diwali rally now only above 8375; expect 8405-8435
SGX NF: 8345 (CMP)
NSE-NF: 8261
As par early indication, NSE-NF may open around 8345 thanks to overnight US market (Dow/S&P Future) rally of around 2% amid Draghi (ECB) comments about more QE and better US Job data.
Draghi is committed to do "more QE or whatever it needs to do" to bring back growth in EU and fight "lowflation" and fixed next Dec'3 for a definitive real action. But nevertheless, his jawbone alone is sufficient to bought down the EUR/USD instantly by almost 2% to around 1.10. By his comments, it seems that he is committed to bring the EUR to almost parity (1.00).
As par market buzz, BOJ may also expand its QE programme on Oct'30 and PBOC may also cut its repo rate by 0.50% in one or two tranches in the near term. China may also extend some mini stimulus to stall the "slow down" of its economy.
Day before yesterday, there was some market talk that Chinese Govt may withdraw the "direct support" to its stock market after it stabilizes to some extent. But there was no official comments about it and later Chinese Premier talked about the importance of a stable & vibrant domestic stock market necessary for its economy and overall sentiment.
Amid all the above supportive global cues, technically, NF has to sustain above 8375 for next hurdle of 8405-8435. Consecutive closing above 8435, we may see 8675 in NF even before Diwali !!
On the downside, immediate support is placed at 8325-8305 and fall below that we may see 8240-8210 followed by 8190-8150 zone in the next few days.
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