Bank Nifty (Nov): 16600-16500 Is A Good Support-----

Expect 17540-17950 only sustaining above 16500;

Otherwise 15795-15325 may be on the card

Govt's reform initiatives & NPA peaking may help

Trading Levels : BNF-Nov

LTP: 16971

SL=+/-	25 POINTS	FROM SLR
			T1	T2	T3	T4	T5	SLR
Strong >	16550		16625-750	16850-993	17060-130*	17200-240	17325-540	<16500
Weak <	16500		16394-325	16195-050	15915-882*	15795-560	15450-325	>16550

As par early morning indication, today both NF & BNF may open lower as SGX NF is trading around 7760 followed by overnight weak US market (down by around 1.40%). 

US & global market is some what confused by a brigade of FOMC speakers yesterday including Chair Yellen (Fed soap opera !!). Although Yellen was quiet about any Dec lift off, others were sounding more like hawkish.

As of yesterday, FFR projecting around 66% probability of Fed rate hike in Dec and 90% of the economists polled by Reuters are expecting that too. Although, the above numbers are quite impressive, Fed will look into various economic data including today's PPP & retail sales figure and next month's NFP figure. Some sections of the market are also skeptical about any possible Dec lift off by Fed as that may roil the market at the year end. Also there is higher risk of severe El-Nino in the US/Pacific ocean next year.

In any case, market may also be slowly discounting the probable Dec lift off and subsequent rate hike @0.25% in every alternate meeting up to 1.25-1.50% FFR by Dec'2016. On the part of the Fed, they are doing a tremendous job of market expectation management and this time, if they do not act in Dec'15, then credibility of Fed may be put in question too. Its really a catch 22 position for them !!

Back to home, as expected, Govt unleashed a barrage of FDI reforms in the form of Diwali gift, just after Bihar debacle and expect more of such types of gifts in the coming days including passage of GST.

For BNF, technically, we may be in the 2-nd wave in the daily EW set up and the projected target of the same might be around 16650-16000 and in that scenario, 3-rd wave may take us to around 17950-18000.

Analytical Charts: