Wednesday, 25 January 2017

Nifty May Open In Green Supported By Positive Global Cues Amid Upbeat US Earnings/Economic Data And Record SPX-500 Closing & Hopes For A “Dream Budget”



Market Mantra: 25/01/2017 (08:30)

Watch 8495-8455 & 8545-8585 Zone In Nifty Fut (Jan), Which May Open Around 8515 Today

As par early SGX indication, Nifty Fut (Jan) may open around 8515 (+28 points) following positive global cues. Overnight US market rallied quite smartly supported by deluge of good Q4 earnings & upbeat economic data. US market sentiment may be also supportive following some “swift” executive actions by Trump without much collateral damage so far. Thus the market shifts some attention from the ongoing Geo-Politics to economics for the time being. Investors may be also concerned about yesterday’s Brexit related development as a result of SC verdict to take approval of the Parliament for invocation of the Article-50 without seeking consent from some other regions as this may delay the overall exit process beyond schedule 2019.

Technically, SPX-500, which is now trading around 2276, need to sustain above 2285-2305 zone for further rally towards 2315/2350-2390 area; otherwise it will again come down towards 2265/2250-2225/2210 area in the near term. Now, market need to know about specifics of Trump’s much talked fiscal/infra spending plan. 

As par some reports, Trump is going to sign some executive orders for anti-immigration policies against some specific countries, build the Mexican wall, NAFTA agreement today, after giving approval for the much delayed Keystone & Dakota oil pipelines in exchange of US made steel pipes to transport the oil. Some reports also indicate that Trump & Co may identify fifty infra projects across US for around $138 bln in 2017 for infra spending.

Apart from global cues, Indian market may also concentrate on the Q3 earnings, which are mixed so far. All eyes will be also on the forthcoming FY-18 budget for which market expectations are quite high. Any disappointment may lead to extreme volatility also.

Hints for actionable trading idea:

Technically, NF need to sustain over 8525-8545* zone for further rally towards 8585*-8635 zone for the day (under bullish case scenario).

On the other side, sustaining below 8495*-8475 zone, NF may further fall towards 8445/8410*-8375 & 8325*-8275 area for the day (under bear case scenario).

Similarly, BNF (LTP: 19065) need to stay above 19200 area for further rally towards 19300*-19500 zone for the day (under bullish case scenario).

On the other side, sustaining below 19150 zone, BNF may further fall towards 19000*-18900 & 18700-18600* area for the day (under bear case scenario).




 NF


BNF



 SPX

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