Monday, 2 January 2017

Nifty May Be Under Stress After “Santa Rally” Amid Rate Cut Transmission Pressure On Banks After NAMO’s “Mini Budget” Speech & Tepid Auto Sales For Dec



Market Mantra: 02/01/2017 (08:30)

Watch 8195-8090 & 8255-8335 Zone In Nifty Fut (Jan), Which May Open Around 8180 Today

BNF need to sustain above 18350-18400 zone for any further rally; Below 18000-17950 will be more weak.

NAMO’s New Year “mini budget” speech is clearly aimed at forthcoming state elections, especially UP, which may be announced shortly; but may keep pressure on banks for “social obligation”.
 
All eyes will be on the Markit MFG PMI (India), further auto sales numbers and PM’s speech today.

As par early SGX indication, Nifty Fut (Jan) may open around 8180 following Friday’s weak closing of US market. Today almost all the major financial markets are closed except India and as such, domestic cues will be vital, although volume may remain tepid.

Maruti reported weak auto sales numbers yesterday (16% MOM fall & 1% YOY fall in Dec’16), which may be a direct fall out of demonetization and “war on black money”.

Hints for actionable trading ideas:

Technically, NF need to stay above 8195 area today; otherwise it may fall towards 8150-8090* & 8040*-7980/7940 zone for the day (under bear case scenario).

On the other side, sustaining above 8235/8255 area, NF may further rally towards 8295/8335*-8375 zone for the day (under bullish case scenario).

Similarly, BNF (LTP: 18196) has to sustain over 18350-18400 area for further rally towards 18600-18650* & 18800*-19050 zone for the day (under bullish case scenario).

On the other side, sustaining below 18250-18200 area, BNF may further fall towards 18000*-17900 & 17800-17600* zone for the day (under bear case scenario).




 SGX-NF

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