Tuesday, 18 October 2016

Nifty May See Some Bounceback Today On The Back Of Positive Global Cues & Short Covering---Watch 8530-8500 & 8605-8635 In NF

Market Mantra: 18/10/2016

As par early SGX indication, NF may open around 8560 (+30 points) amid positive global/Asian cues, primarily supported by some strength in oil and weak USD.

Technically, NF has to sustain over 8545/30* zone; otherwise it may again fall towards 8500-8465* & 8405-8360 area for the day.

For any meaningful strength, NF has to sustain over 8575-8605* area for further intra bounce back towards 8635-8685 & 8705-8745* zone as the day proceeds.

Similarly for BNF (LTP: 19105), immediate support is around 19040*-18990 area and sustaining below that BNF may further fall towards 18900*-18750 & 18650*-18450 for the day.

For any meaningful strength, BNF need to stay above 19200-19275* area for further rally up to 19350-19450 & 19600*-19850 zone as the session progress.

Overnight US market closed lower as overall US economic data & earnings were mixed and there was some selling in oil.

Yesterday's US economic data (Empire mfg/IIP/Capacity utilization) were all below/at par market expectations and not good at all, except IIP, which showed some strength after long time. This may also highlights the tepid consumer spending & strong USD for the economy there.

Although, oil was under pressure yesterday for Iran's comments about production level and ongoing doubt about real effectiveness of OPEC's production cut/freeze proposal, it rebounded again in the early Asian session today because may be of weak USD & some reports about early rebalancing of demand & supply, of course with caveat of  successful OPEC production cut/freeze in Nov.

Back to home, all eyes will be on the progress of GST today and the 20-th Oct meet for the final GST rate, which may be the most vital & contentious political issue.

Also some report that FII interest in G-Sec drops may affect the underlying sentiment of the market today.

Overall, expect some stock specific movements as the Q2 earnings are unfolding day by day.



 SGX-NF


NSE-BNF

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