Nifty Closed In Slight Positive After Respecting The Important Support of 8475 (Nifty Fut)

Nifty Fut (July) closed today above 8550 after recovering from a moderate selling wave, but respected the important support level of 8475. 

Today's high & low was at 8555 & 8485.60.

Looking at the chart, NF has to sustain above 8550-8585 for an immediate target of 8605-8640-8685* & 8725-8785-8845.

On the flip side, sustaining below 8525-8475* zone, NF will fall to 8445-8395-8340* & 8315-8275-8185 area in the near term.

Today global market commenced in a sombre note amid some selling in oil. All eyes will be now on ECB meet on Thursday, where Draghi is expected to reaffirm ECB's commitments to "do what ever is required" to stimulate the fragile EU economy amid uncertainty of Brexit & Italian banking crisis (no real policy action is expected).

Incidentally, both EU & UK are now felling the downgrade pressure of the global rating agencies because of Brexit related uncertainty and effect on real growth. 

All eyes will be also on 28-29-th July for the BOJ policy meet to have an idea of the real QQE/"Helicopter Money" as highly expected.

Today, Indian market was choppy except some stock specific actions. As expected, Govt today announced the FY-17 recapitalization package for the PSBS (13 banks) for Rs.22915 cr, which may be in line with market estimates. As this news was already known and largely discounted, considering the rally of the PSBS for the last few trading session, except some whipsaw movement, there was not much fireworks in the PSBS (may be an example of buying the rumour and selling the news).

Market is now keenly watching the ongoing Q1 results and parliament proceedings/GST passage in the RS. So far the results were good or in line with the market estimates except some aberrations. But, that is not sufficient for the Nifty to sustain above 8685 as the "good" results may be already discounted by the market to a large extent, considering the recent rally of more than 40% from the February Budget day low.

Meanwhile, Wipro just released its Q1 result, which is somehow below street estimates and guidance is also tepid (expect, some selling pressure in Wipro tomorrow).

Indian market got some late support today after reports that Govt & opposition will take part in a 5 hr long GST debate in the RS in the coming weeks with some caveats/conditions (like discussions of the current state of conditions in Kashmir & growing political intolerance as alleged by the main opposition party (Cong)). As par some reports, BJP leadership will meet the Cong tomorrow for a GST discussions as now the Govt want to pass it by consensus and may not by voting in the RS.

Although, Cong is sticking to its demand of written reply by the Govt on its 3 points modification of the GST, market is expecting that if the debate starts in the RS, then it may be passed with direct/indirect support of Cong (consensus).

In any way, as of now, watch the most important technical zone of 8685-8725 in NF either for 9065-9200 or 8000-7800 (make or break) in the coming months.

Article Courtesy: http://frontiza.com/