Nifty Fut (Sep) today closed
around 8839 after reaching a fresh 52 weeks high of 8864 and an
opening session low of 8789.
Technically speaking, now NF
has to sustain above 8875-8895* zone for further strength
towards 8925-8945/75*-9015 and 9075*-9125-9185 zone in the
immediate to short term.
On the other side,
sustaining below 8850-8815* zone, NF may fall towards 8755*-8690-8655/30
and 8560-8515-8435 area in the immediate to short term.
Overall, for tomorrow,
one should watch 8875-8755 area in NF for a definitive
movement of overall market in either direction.
Today global cues was tepid
as there was broader USD strength on the back of better US
economic data (consumer confidence at 11 months high). After
recent spate of hawkish Fed statement, currently any good economic
data for US may be translated as bad for risk assets
(EQ/Gold/COMM) as probability of Fed rate hike will be higher.
Also in Japan, an economic
advisor to PM (Abe) even spoke about a new QE idea that BOJ can
purchase Foreign currency bond (??) as a strategy to devalue its
own currency (Yen).
As BOJ is increasingly short of eligible
Japanese bonds for purchase, its desperate proposal/thinking
about purchasing other currency bond may be interpreted as
indirect intervention of other foreign currency. As a result,
USD is getting more strong against JPY.
Along with the US Job data
(ADP/NFP), market will keenly watch culmination of G-20 meet
(China) in the weekend as fear of another bout of Yuan
devaluation is rumoured by China this time.
Back to home, Indian market
was opened today in a positive note after yesterday's Govt plan
to release pending bonus for the last two years for the central
Govt employees.
The market got further boost after Govt announced
another incremental reform policy for turnkey projects, earmarking release of 75% of Arbitration award to developers. This has caused
significant rally in some of the infra & construction scrips (likely beneficiaries are HCC, Gamon, Simplex, NCC)
and banks as banks may recover significant amount for its
stressed assets accounts under the developers head.
But, its just a draft policy right now and going forward market will keenly watch the actual form and other fine prints, like more clarity on disbursals.
Today, Nifty got some
support from Ultratech Cem (FII buying permission up to 30%),
Kotak Bank (permission to Canadian Pension fund for stake buying
between 5-10%), LT (Govt plan to release arbitration money as
stated above), ZEEL (above expected amount for sports channel
sale to Sony), Tata Motors (plan for domestic operations rejig).
Nifty was primarily dragged
today by ONGC, Tata Steel/Hindalco (as steel & iron ore
prices fall to 4 weeks low in China), RIL (adverse Shah
committee report about Natural Gas dispute with ONGC).
After market hours, India
today released its core sector output data (3.2% against 5.2% MOM), Fiscal deficit
(almost 73.7% of FY-17) and Q1 GDP figure (7.1% against
consensus of 7.6%; prior: 7.9%), which are both seems to be
negative for the economy and the market.
SGX-NIFTY
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