Nifty Fut (July) closed at
8369.30 after making a low of 8330.05 and high of 8392.
Technically, sustaining
below 8325-8300 zone, NF will fall to 8240-8180 and
8025-7920 area.
For any strength, NF
need to stay above 8395-8415 zone for 8450-8510 and
8575-8685 territory.
Yesterday, GBPUSD broke 1.30 in the early Asian & EU session amid suspension of some REIT funds redemption in UK and fear of property prices slump & overall uncertainty of the ongoing "Brexit drama". As a result, investors were running to the safety of Yen, USD & Gold.
Global market recovered in
the late US session (evening) yesterday after better ISM data
& dovish FOMC minutes, which showed that FED has literally
decided to stay in side-line in the foreseeable future even
before "Brexit" referendum. But the dovish FED tone may be
also an indication of lack of confidence on their part on US
& Global economy and put more uncertainty.
In the morning session
today, there was initial selling in AU due to S&P
downgrade for its ongoing political uncertainty. But lack of
positive yield in other G-10 universe has forced the yield
hungry investors to keep the present "carry trade" and AU
quickly recovered.
Yesterday, GBPUSD broke
1.30 amid suspension of some REIT funds redemption in UK and
fear of property prices slump & overall uncertainty of the
ongoing "Brexit drama". As a result, investors were running to
the safety of Yen, USD & Gold.
In US, ADP Employment
number just published was above expectation and that may be
undermining the May NFP report as "one off" item, which is
positive for USDJPY & "risk assets" (EQ). All eyes will be
on the June NFP report tomorrow to have a glimpse of the
world's largest economy (US).
Domestically, India has
some surprise element in the latest cabinet reshuffle day
before yesterday night, in which Jayant Sinha was removed as
DY FM. The finance ministry now has two new deputies to
"assist" the present FM (Arun Jetley). Clearly, the overall
cabinet reshuffle may be indicating more influence on the part
of RSS aimed at next series of state elections and an attempt
to clip the wings of the present FM, who is the most
influential senior minister in the NAMO cabinet today. This
(internal politics of BJP), may be negative for our market
sentiment, if this speculation is proved to be true in the
coming months.
Incidentally, Jayant Sinha, being a finance professional was a perfect match for the FM.
Removal of Sinha, may put question on the future banking reform initiative by the Govt.
Sinha might pay the price for his father's criticism of the BJP Govt, but this question of "intolerance" may come again as this was also one of the prime reason for the "Rexit".
Incidentally, Jayant Sinha, being a finance professional was a perfect match for the FM.
Removal of Sinha, may put question on the future banking reform initiative by the Govt.
Sinha might pay the price for his father's criticism of the BJP Govt, but this question of "intolerance" may come again as this was also one of the prime reason for the "Rexit".
Apart from passage of GST
in the forthcoming Parliament session, all eyes will be on the
CPI and Q1FYQ7 earning session in the coming weeks.
Today, IT stocks adversely
affected due to fear of "Real Brexit" and overall environment
of uncertainty. Tata Steel burnt the fear of "Brexit" today as
some doubts emerge for its UK asset sales and pension fund
liability. Tata Motors may also be affected due to this in the
coming days.
Telecom stocks may come
under some renewed pressure in the days ahead with the new
spectrum auction, which may be quite expensive amid their stressed
balance sheets and huge debts.
Lupin today rallied quite
smartly by nearly 8% after its Goa Plant received US FDA
clearance (preliminary). Incidentally, this plant accounted
for nearly 50% of the US export.
Article Courtesy: Frontiza.com
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