Nifty Fut(June) closed the
day around 8104 after making an opening low of 8048 and high of
around 8130.
Looking the the technical
chart, NF need to close above at least 8155-8200 zone for an
immediate target of 8335-8350 & 8410-8510 area.
On the flip side,
consecutive closing below 8075-8010 area, NF may further fall
up to 7925-7870 & 7785-7720 territory in the near term.
After "Brexit" referendum in
UK, all eyes are on the ongoing political turmoil there which is
adding more uncertainty in the financial market. As par the
rule, Article-50 need to be invoked in UK Parliament to initiate
the process of "Real Brexit". But, as of now, it seemed that the
"Leave" campaigners are not too much enthusiastic about that and
various prominent "Remain" camp politicians/leaders are
tendering their resignations along with the UK PM. As the thing
stands today, Article-50 may be invoked (if at all !!) only
after Oct'16 (after Cameron exit and a new PM took the office).
There are also some strong
online petition by the "Remain" camp for a 2-nd referendum. All
these political game of football may also be indicating that UK
may hold an early general election after Cameron leaves the office.
On the other side, EU
authority, specially Germany are putting immense pressure on UK
to hasten the process of "Real Brexit" as soon as possible and
apparently are not interested to offer any better package for UK
to remain in EU as of now. Any formal negotiation will only
happen after UK officially invoke Article-50.
Clearly, all these "Brexit
Drama" are creating lots of confusions & uncertainties among
market participants and both "Wall Street" & "Real Street"
does not like so much uncertainty, which may continue for the
next two years.
There are also some market
talk that BOE will cut by 0.25% shortly and FED may also cut by
0.25% to return to ZRIP again in the July-Sep'16 meet in order
to keep the market stable after post "Brexit" scenario. But
market is not paying any attention to those scenario right now
and even to the Chinese Yuan, which is devalued today against
USD to record 6.68 level.
We have some sector
specific movement today as:
1. Shares of IT cos
(software service export) declined today for their hefty
exposoure on EU market.
2. Scrips of FMCG and rural
economy oriented cos rallied today by some extent after IMD
predicted extended monsoon this year.
3. Oil marketing &
Airline cos rallied today decently amid continuous decline of Crude
oil as a fall out of "Brexit".
4. Pharma also rallied today
after HC stayed the price controlling order of NPPA.
5. Some metal counters rallied
today amid strength in copper prices.
5 Bharti Airtel declined
today modestly after deferment of its Bangladesh JV.
Going forward, apart from
GST & actual progress of monsoon, market will look into the
June CPI number, Auto sales figure and appointment of next RBI
Gov, which may be the next drivers of our market.
So far, as par various
report, Gov may appoint an economist of Rajan's caliber for the
post and currently there are four names (Urjit Patel, Kaushik
Basu, Rakesh Mohan, Subir Gokran). Present SBI Chairwoman
(Arundhati Bhattacharya), who is also a strong contender for the
post, may be granted another year for SBI instead of RBI.
Article: Courtesy: Frontiza.com
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