Friday, 13 January 2017

Nifty May Open Higher After “Good” CPI & IIP Data Yesterday Despite Tepid Global Cues And Some Rebound In USD Following Upbeat View Of Yellen & Other Fed Members About US Economic Prospect & Rate Hikes



Market Mantra: 13/01/2017 (08:30)

Watch 8405-8350 & 8435-8485 Zone In Nifty Fut (Jan), Which May Open Around 8442 Today

As par early SGX indication, Nifty Fut (Jan may open around 8442 (+20 points) after yesterday’s lower CPI & higher IIP data despite demonetization woes.

Overnight US market was tepid, but off the lows following upbeat views by Yellen and some other Fed members about strength of US economy and prospect of rate hikes. As par Yellen, Fed is for higher US employments and decent inflation for US economy.

Thus, despite disappointment by Trump’s presser, USD is getting strength across the board before retail sales data later today. Also, whatever be Trump’s political risks, market is expected his administration to at least announce some tax cuts and spending plan after he take over the Oval office.

Oil is also higher after Saudi pledge of cuts implementation and improved demand from China. Also, today’s trade data from China is not so bad although export has suffered more than market expectation.

After upbeat CPI/IIP & TCS result, Indian market today will look to Infy for its guidance as tepid result may be already discounted. 

All eyes may be also on the EC today or in the weekend, for any final decision about budget day.

Hints for actionable trading ideas:

Technically, NF needs to sustain over 8465-8485* zone for further rally towards 8510-8545* & 8585*-8635 area for the day (under bullish case scenario).

On the other side, sustaining below 8435-8405* area, NF may fall towards 8380/8350*-8305/8290 & 8225/8205*-8180/8125 zone for the day (under bear case scenario).

Similarly, BNF (LTP: 18899) need to sustain above 19150 area for further rally towards 19250-19400* for the day (under bullish case scenario).

On the other side, sustaining below 19050 area, BNF may further fall towards 18750*-18550 area for the day (under bear case scenario).



SGX-NF



BNF

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