Nifty May Trade In A Range Amid Flat Asian Cues And Tepid Domestic Sentiment; Yearend “NAV Rally” May Give Some Support; 7870-7840 In Nifty May Be Key Today For Any Bounce back

Market Mantra: 27/12/2016 (08:30)

Watch 7900-7840 & 7945-7985 Zone In Nifty Fut (Dec), Which May Open Around 7920 Today

For BNF, 17600-17550 area is key support as of now.

As par early SGX indication, Nifty Fut (Dec) may open around 7920 following flat global cues after upbeat China industrial profits data & tepid Japanese CPI & unemployment data.

As a result of below expected Japanese economic data, USDJPY is gaining some lost strength in a holiday thinned market and consequently Nikkei is trading in positive territory.

But, bond market & currency turmoil (Yuan) has kept the China market in a slight negative territory, despite upbeat industrial profits figure.

Oil is also gaining some strength as deadlines loom for implementation of the OPEC & Non-OPEC cut from 1^st Jan’17 and market will keenly watch the implementation aspect of the plan very cautiously as the past records of such production cut plan did not work well even for the short term.

Technically, Crude oil (LTP: 53.32) need to sustain above 55 for any further rally towards 58-62 zone in the near term; otherwise it may come down.

Back to home, a strong USD & Oil may be some of the external headwinds for the Indian market apart from the ongoing economical & political chaos as a result of demonetization. All eyes may be on the PM’s meeting with his official economic advisors today for an assessment of the domestic economy after demonetization disruptions.

Market may also keenly watch any comments from the FM/Govt regarding the capital market tax reform and any other clues for further escalation of the “war on black money” after 31^st Dec’16.

Among all these demonetization/remonetization/digitalization, talk of capital market tax reforms, economic slowdown and narratives of “surgical strikes on the unaccounted money/corruption” & ongoing political battles, there are distinct lack of any meaningful positive cues & progress of GST, which may have aided further dampened the market sentiment. That’s why market may not be witnessing any meaningful buying pressure despite significantly oversold.

Hints for actionable trading ideas:

Technically, NF has to sustain over 7900 area today; otherwise it may further fall towards 7870/7840*-7790 & 7750-7705* zone for the day (under bearish case scenario).

On the other side, sustaining above 7945 area, NF may further rebound towards 7985/8015*-8075 & 8110-8185* zone for the day (under bullish case scenario).

Similarly, BNF (LTP: 17678) has to sustain above 17550 area today; otherwise it may further fall towards 17450-17350* & 17200*-16900 zone for the day (under bearish case scenario).

On the other side, sustaining above 17850 area, BNF may further rebound towards 18000*-18250 & 18350-18500* zone for the day (under bullish case scenario).

SGX-NF

BNF