Nifty Closed Almost Flat (+0.4%) After Bouts Of Volatility On The Back Of Fed/BOJ And Easing Of Brexit Fears

Nifty Fut (June) closed the week almost flat at 8163 after a moderate volatility (High: 8232 & low 8076).

As indicated earlier, NF need to sustain above 8060-8030 zone; otherwise it will fall towards 7820-7675 zone in the days ahead.

For any strength, NF need to stay above 8260-8295 for 8335-8405 zone.

In the week ahead, all attention will be on the scheduled "Brexit" referendum on 23-rd June (as the poll is not still postponed officially after the horror murder of the British Pro-EU MP; its still unclear if its a political act spurred by Brexit debate or simply the workings of a psychopath).

In any way, this incident is able to swing the pendulum in favour of the "Remain" camp and the global market has stabilized to some extent from the previous two days of sell off.

But, even if there is "Brexit" in favour of "Leave", then apart from few days whipsaw movement (volatility), stability may return soon as central bankers will be in co-ordinated action and not let the market to behave in a disorderly manner.

Also, the worst case scenario of "Leave" may not translate the UK will leave EU in the near future as there will be other legislative issues and most probably, the "Leave" referendum may provide strong "bargaining power" to UK for securing "further favorable deals" from EU/ECB and ultimately UK will not leave EU in a haste.

At the end of the day, the present "Brexit" drama may be acting as "QQE" (without any "helicopter money") for UK economy and market is largely ignoring the set of good macros over the last few months (GBP fall quite significantly over the last few weeks).

After this "Brexit" event, market may focus on Fed & BOJ as Yen is plummeting and China (Yuan devaluation & debt bubbles), which is far more serious than "Brexit".