Nifty May Be Continue Under Pressure Amid US Political Jitters & Fear Of Rupee Devaluation By FII (?); 8480-8440 & 8545-8585 May Be Crucial For NF Now

Market Mantra: 04/11/2016 (08:30)

As par early SGX indication, NF may open around 8485 (-34 points) following tepid global cues as race between Clinton & Trump is narrowing just before election early next week.

Looking at the chart, NF has to sustain over 8480-8440* area; otherwise it may further fall towards 8400*-8360-8265 zone today.

On the other side, for any intra rebound, NF has to stay above 8510-8545* area for further bounce back towards 8585*/8610-8660-8705/8730 territory as the day may progress.

Similarly BNF (LTP:19250) has to sustain over 19200-19150* area; otherwise it may further fall towards 19050-19000* & 18950-18850* zone for the day.

For any strength, BNF need to trade consistently above 19250-19380* zone for further bounce back towards 19500-19600* & 19700-19850* area as the day may proceeds.

Apart from ongoing US Election drama, all eyes will be on the US Job data today (expectation: NFP-175K; Unemployment Rate: 4.9%; Average Hourly Earnings-MOM: 0.3%)

Progress of  FBI action/investigation in Clinton E-Mail saga may also be keenly watched and as FBI is under immense political pressure, may also "conclude" the investigation early in the weekend, just days before the election day and "clear" the Clinton camp. In that scenario, we may see significant global rally for "risk assets" just ahead of polling date early next week.

In UK, GBP is gaining strength as High Court asked the Govt to go through the Parliament process for Brexit and BOE affirmed some hawkish stance (may not cut in 2017 as GBP is significantly devalued for Brexit fear itself).

Domestically, all eyes will be on the market reaction to the Govt's proposal for multiple GST rates along with cess yesterday and meeting today to resolve the 'Dual Control" mechanism.

Multiple rates & cess on different product & service categories may make the compliance & proper accounting a nightmare for both small & big indirect taxpayers/business concerns and ultimate compliance cost may be significantly higher. Also, such "GST" may be against the basic concept of "One Tax One Nation" or simplification and may not contribute too much for the GDP growth as expected.

 SGX-NF

 NSE-BNF