Tuesday, 10 January 2017

Nifty May Be Under Stress Amid Tepid Global Cues Despite Some Fall In USD & Oil Ahead Of Q3FY17 Earning Season



Market Mantra: 10/01/2017 (08:30)

Watch 8295-8240 & 8335-8375 Zone In Nifty Fut (Jan), Which May Open Around 8260 Today

All eyes may be on the Indusind Bank Q3 result today for a glimpse about extent of any real damage after demonetization and also on the EC for any final decision about budget date

Watch 1165-1185 & 1125-1095 area in IIB on the result day.

As par early SGX indication, Nifty Fut (Jan) may open around 8260 (+7 points), almost flat following tepid global cues after overnight fall in US market (-0.38%). Sustain of Dow above psychological level of 20000 remains elusive as “Trump day” getting closer and USD/US bond yields was also under some pressure.

Oil also corrected good yesterday after reports of Iraq’s increasing output and US SPDR release (8 million barrel) in the days ahead. Also, increasing US outputs and more oil rigs coming online on the back of better oil price has kept the rally of the same in check amid renewed concern of supply glut. As par Kuwait, oil market may see “gradual” implementation of the recent OPEC & Non-OPEC cut agreement in the coming months rather than in Jan’17. Forecast of usual than warm weather in Jan-Feb may have also kept the oil in pressure (demand of heating oil may drop). Correction in oil/energy related shares was one of the main reasons for Dow’s fall yesterday.

Back to home, although fall in USD & Oil may support the domestic market to some extent, apprehension about poor Q3FY17 results after demonetization and any “adverse” EC stance about postponement of the budget day (1st Feb) may also keep the pressure on the market.

Some truce in Yadav family and projection of Akhilesh as CM candidate by his warring father Mulayam; i.e. a “united” SP may be negative for BJP’s prospect in the forthcoming UP election and for the market also.

Also, reports for the Govt’s intention for a change of definition in the LTCGT from one to three years may be negative for the market.

Hints for actionable trading ideas:

Technically, NF has to sustain over 8240-8225* area today; else it may further fall towards 8185*-8140 & 8080-8040* zone for the day (under bear case scenario).

For any strength, NF need to sustain above 8265-8295* zone for further rebound towards 8335*-8375 & 8425-8485* area for the day (under bullish case scenario).

Similarly, BNF (LTP: 18321) has to sustain over 18250 area; otherwise it may fall towards 18140-18000* & 17900-17700/17600* zone for the day (under bullish case scenario).

For any strength, BNF need so sustain above 18450 area for further rally towards 18550*-18650 & 18800*-19000/19200 zone for the day (under bullish case scenario).

On the result day, Indusind Bank (LTP: 1159) need to sustain above 1165-1185 area for any further rally; otherwise it may fall towards 1125-1095 & 1035-980 zone in the near term (under bear case scenario).

On the other side, sustaining above 1185 zone, IIB may further rally towards 1210-1240 & 1255-1335 area in the near term (under bullish case scenario).



SGX-NF



 BNF


 IIB



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