Market Mantra: 09/11/2016 (08:15)
As par early SGX indication NF may open around 8270 (-294 points), almost 3.5% gap down after Indian Govt banned 500/- & 1000/- currency note for circulation in an unexpected move yesterday (which caused nearly 150 points gap down in the SGX NF today) coupled with "surprised" US election outcome probability (Trump is going ahead with 137 against Clinton's 104 EC out of 270 required; moreover Republicans are also well ahead of Democrats in controlling the all important US Senate).
Looking at the chart, NF has to sustain over 8240* area; otherwise it may further fall towards 8175/8140*-8040 & 7980-7900* and further towards 7850-7675 & 7480/7415-7355/7290 area for the day (further worst bear case scenario after huge gap down opening in the event of clear Trump win or even a tight result).
For any reversal, NF has to stay at least above 8335/8365* area for further up move towards 8415/8440-8485* & 8540/8575*-8605/8640 and further rally towards 8705/8750*-8790 zone in the event of a clear Clinton win as the day may progress (bullish case scenario).
Similarly, BNF (19575), which may open around 18750 area after gap down, has to sustain above 18650 zone; otherwise it may further fall towards 18450/18400*-18325/18275 & 18150-18050 and 17850-17750 zone for the day.
For any strength after huge gap down opening, BNF has to sustain above 18900 area for 19050/19100*-19200/19325 & 19450/19550*-19700 and 19800-19900 zone in the event of a clear Clinton win (bullish case scenario, if any in the 2-nd half of the day).
Apart from the US election outcome factor, yesterday's surprising "surgical attack" on the "black money/terror funding" may have huge impact on the Indian market itself as Indian consumption story may be largely dependent on "unaccounted/black money".
Almost 65% of GDP is currently operated by cash transactions and India has an unique "Dabba/unofficial Trading" module in huge volume, which may be also trapped now.
SGX-NF
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