Tuesday, 24 January 2017

Nifty May Open In Positive Tone Amid Mixed Global Cues Supported By Fall In USD And Hopes For A “Dream Budget” Amid Mixed Q3 Earnings (So Far)



Market Mantra: 24/01/2017 (08:30)

Watch 8460-8395 & 8485-8545 Zone In Nifty Fut (Jan), Which May Open Around 8430 Today

Apart for the Trump rhetoric about trade protection (TPP cancellation & NAFTA deal modification), market may also watch keenly UK SC’s verdict about Parliament approval for the Article-50 invocation; if SC give its verdict for no requirement of Parliament approval, then market may see a knee jerk reaction as its already being discounted for the approval procedure.

As par some reports, strict adherence to fiscal prudence in real terms (targeted fiscal deficit wrt actual final GDP) in FY-18 budget may be difficult due to various reasons and that may make rating agencies & angel investors little unhappy going forward.

As par early SGX indication, Nifty Fut (Jan) may open around 8430 (+19 points) following mixed global cues and some fall in USD.

In his first Monday office, Trump signed three executive orders and one of them cancellation of the TPP agreement as widely expected. He also talked about a “major border tax”, “massive cut in corporate taxes” and reduction of various regulations in US for doing business by “75%” (??). All these “executive decisions” & rhetoric are making investors/market nervous and USD is being sold off.

Basically, it now seems that Trump may be going for a major tax cut in US at the expense of trade protection and imposition of additional “border/import tax” (10%). On a closer scrutiny, this stance of Trump may be also bad for US corporates, whose 40% top line came from outside US.

Back to home, apart from temporary support of a weak USD, market may be also waiting for the FY-18 budget with great hopes after EC & SC gave their nod with some restrictions to present the budget on 1st Feb ahead of state elections.

Hints for actionable trading ideas:

Technically, NF needs to stay above 8485-8515 zone for further rally towards 8545*-8585 & 8615-8685 area for the day (under bullish case scenario).

On the other side, sustaining below 8460-8435 area, NF may further fall towards 8395-8330* & 8245*-8205 zone for the day (under bear case scenario).

Similarly, BNF (LTP: 18917), need to stay above 19050 area for further rally towards 19200*-19300 zone for the day (under bullish case scenario).

On the other side, sustaining below 19000 area, BNF may further fall towards 18800-18600* & 18400-18250 zone for the day (under bear case scenario).




NF
 

 BNF



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