Market Mantra: 20/12/2016
(08:30)
Watch 8090-8040 & 8165-8205 Zone In
Nifty Fut (Dec), Which May Open Around 8115 Today
Strong USD, weaker Yuan & China
market, neutral BOJ, some geo-political tensions in Germany & Turkey and
concern of Italian Banks bail out may be dragging the global “risk on”
sentiment today.
As
par early SGX indication, Nifty Fut (Dec) may open around 8115 (-12 points)
amid tepid global/Asian cues following some fresh geo-political tension and
neutral stance of BOJ, with upgrade in Japanese economic assessment. BOJ sounds
less dovish so far and all eyes will be on the Kuroda presser and Q&A
followed shortly.
In
Ankara (Turkey), yesterday a Russian diplomat was killed by an shooting
incident and Russia may take it seriously citing the same as related to its
Syria issue. In Germany, there was also an apparent terrorist attack by a
speeding truck in a Christmas market and there was also a shooting incident in
Switzerland. All these sad incidents may be heightening the geo-political “risks”
in a holiday thinned market with tepid volume apart from the recent incident of
China’s seize and subsequent release of an underwater US drone.
Although,
there was some concern regarding bail out efforts of Monte Paschi yesterday, as
par latest reports, Italian Govt may be taking necessary steps to bail out all
the fragile Italian Banks by buying part of their equities and ECB may lend a
helping hand for Italy Govt in this regard as expected.
Back
to home, domestic market may be under pressure on consistent strength in dollar
index (USD) and US bond yields apart from the ongoing demonetization fiasco.
As
par some reports yesterday, Govt may revise personal Income Tax slabs by hiking
the minimum threshold limit to Rs.4 lakhs/pa income. Govt may also slash corporate
tax by 5% without any benefit of existing exemptions.
Market
may be eagerly waiting for any announcement of stimulus and hints of any “dream
budget” this year from the NAMO Govt to reduce the “pain” of demonetization and
Q4FY16 earnings.
All
eyes will be also on the Tata group of companies after some “dramatic”
developments in the ongoing Tata-Cyrus duet. But, overall the “Tata” brand may
be tarnishing as it was also a symbol of “trust” so far.
Technically, NF has to sustain 8090*
area today; otherwise it may further fall towards 8040*-7980 & 7940-7900*
zone for the day (under bear case scenario).
On the other side, sustaining above
8165* area, NF may rebound towards 8205*-8245 & 8305*-8385 zone for the day
(under bullish case scenario).
Similarly, BNF (LTP: 18297) need to
sustain over 18200* area today; otherwise it may further fall towards
18150/18000*-17950 & 17800*-17650 zone for the day (bear case scenario).
On the other side, for any strength,
BNF need to stay above 18450* area for further rebound towards 18575*-18800
& 18900*-19100 zone for the day (bull case scenario).
SGX-NF
BNF
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