Market Mantra: 06/12/2016
(08:30)
Sad Demise Of “Amma”
May Create A Political Vacuum Not Only In TN, But Also In The Centre, Being The
3-rd Largest Party; GST May Be Further Delayed.
Watch 8215-8275 & 8125-8060 Zone In
Nifty Fut (Dec), Which May Open Around 8150.
As
par early SGX indication, Nifty Fut (Dec) may open around 8150 (-23 points)
following flat global cues.
Overnight
US market was strong (+0.24%) on the back of upbeat ISM Non-Mfg PMI, which came
at 57.2 against estimate of 55.4 (prior: 54.8). USD was mixed amid falling US
bond yields and DXY has broken the key technical level of 100.45 and now
trading around 100. Any fall below 99 may further drag it towards 97-96 zone
just weeks before Fed meet.
In
EU, Italian PM, who has offered his resignation yesterday after defeat in the
constitutional referendum was asked by the President/Parliament to continue
till the budget. But, Italian banking recapitalization effort may be hampered
because of this ongoing political risks there (4 PM in the last 6 years!!).
Looking
ahead, all eyes will be on the ECB & Draghi’s comments day after tomorrow
apart from Fed’s stance (forward guidance for 2017) on 16th Dec as
0.25% rate hike is almost certain now.
Back
to home, apart from the demonetization related news flows, all eyes will be on
the progress of GST. As par Kerala FM, dual control mechanism may not be passed
by the GST council as there is no consensus due to “adamant” nature of both
sides (states & centre) and also for the fact that the Centre does not have
the required 2/3rd majority in the GST council.
Thus,
as of now, there is little hope for the passage in the current Parliament
session unless there is a consensus on the next meeting (10-11 Dec), but there
is little hope.
Market
will be focused on RBI action tomorrow and hopes are now running very high for
0.50-1.00% repo rate cuts on the back of falling inflation and growth as a
result of demonetization.
Technically, NF has to sustain over
8195-8215* area for further rebound towards 8275*-8335 zone for the day (under
bullish case scenario).
On the other side, sustaining below
8125*-8100 area, NF may further fall towards 8060/8040*-8000 & 7950-7900*
zone for the day (under bear case scenario).
Similarly, BNF (LTP: 18481) has to
sustain over 18575-18650* area for further rally towards 18800-18975* &
19100*-19350 zone for the day (under bullish case scenario).
On the other side, sustaining below
18450-18300* area, BNF may further fall towards 18200*-18100 & 17950-17850*
zone for the day (under bear case scenario).
SGX-NF
BNF
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