Market Mantra: NF & SPF Took Support From 7200 & 1800 zone ?

SGX NF: 7360

NSE-NF: 7320

As par early morning indication, NSE-NF may open around 7360 after yesterday's epic global market fall. 

Technically, NF took support from 7215 area yesterday and now need to trade above 7385 for immediate to short term target of 7445-7485* & 7540-7580* and 7635-7680.

On the downside, immediate support of  NF may be around 7340-7325* zone followed by 7280-7260 and 7240-7215-7190* area. Sustain below 7190 for any reason, NF may try to catch 7095*-7000 & 6900*-6850 zone in the worst case scenario in the near term.

 

SPF took support from vital 1800 area and covered smartly in late trade and now trading around 1875. Going forward, it has to sustain above 1880 for 1905-1920* & 1961-1982 level for further stability. It need to stay above 1860-1845 and fall below that for any reason, may again visit towards 1800-1770 zone, which should be the bottom for SPF for the time being.

After yesterday's market rout, specially as USDJPY dipped below 116 level for a while, it seems that central bankers are coming out of its "sleep" and as par reports BOJ is closely "watching" the FX market as USDJPY reached their "tolerance" level around 116. Probably, BOJ will not allow to fall it below 116-114 band in order to keep its yearlong effect of QQE intact and to protect the export edge of Japan.

Thus, we may see other central bankers will soon swing into action (at least verbal intervention) and even Fed may indicate that they are not going to lift further in March'16. There are also some market buzz that Fed may bring new form of forward QQE/Negative interest rate in US to stimulate its economy and prevent a "dooms day" like scenario in the global financial market. All eyes will also be on today's ECB meeting for any further "Draghi jawbone" as EURUSD is also flirting around 1.10.

It seems that the main reason of the current global market panic is fund withdrawal from SWF from Oil rich countries as Oil fall below $30 and they need fund to run their budget. China is acted just as catalyst. Going forward, oil should not fall & sustain below $25 as par TA and if stayed longer below that, it may invite more problem for global as well as Indian market.  

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