Market Mantra: Nifty May Continue To Be Under Pressure Amid Tepid Global Cues & Lack Of Fresh Meaningful Domestic Triggers

As par early SGX cues, NF may open around 8740, almost flat after overnight US market also closed flat (-0.07%).

Technically, sustaining below 8700-8665* area, NF may fall further towards 8615-8580-8530*.

For any strength, NF need to sustain above 8765-95* area for further rally up towards 8835-8875*-8905.

Similarly, BNF (LTP: 19500), need to sustain above 19405* zone; otherwise it may further fall towards 19340-19040*-18700 area.

For any strength, BNF need to sustain above 19675* area for further rally up to 19750-19950*-20050/200.

US market was closed yesterday almost flat ahead of NFP data later today. The global market got some late boost yesterday, after ECB officials clarify that they has no intention of any early tapering as being strongly speculated by the market. 

Also, a report that various German blue chip companies are drawing a plan to inject the required capital, if such need actually arise in future (back door bail out by the German Govt ??).

IMF also warned about disorderly global financial market in the case of planned Dec hike by Fed and it seems that they are less confident about the underlying strength of the global economy.

From various indications, it seems that if there is no unexpected geo-political shock this time, Fed will not only hike in Dec'16, but may also give a clear guidance about path of future hikes (probably 1/2 hike in a year). Thus, rather than one symbolic hike, Fed's dot-plots may matter more as market is seriously taking Fed's hawkish comments now-a-days. 

But the most "horrific" thing is today's early morning sudden flash crash of GBPUSD amid thin Asian early morning market. Although, it may be an act of fat finger, but some hard comments by the UK PM and France Prez about the "Real Brexit" may be also responsible and the market is gradually preparing for an eventual exit of UK from the EU. 

As par some reports, GBPUSD may head towards parity also in the months ahead simply because of Brexit uncertainty and strength of USD.

Back to home, India yesterday concludes Telecom Spectrum auction for an amount which is far less than the budget estimate and it may prompt the Govt for more disinvestment & SUUTI sales to make up for the budget expenditure, which may be negative for the market sentiment.

Analytical Charts:

SGX-NF

 

 NSE-BNF