Wednesday, 18 January 2017

Nifty May Open In Slight Positive Amid Mixed Global/Asian Cues After “Hard Brexit” Stance By UK (Subjected To Parliament Approval) & Uncertainty About Trump’s Policy; Withholding Of The Recent Controversial FPIS Taxation Issues May Help (?), Although It’s In The Expected Line



Market Mantra: 18/01/2017 (08:30)


Watch 8425-8380 & 8465/8485-8510 Zone In Nifty Fut (Jan), Which May Open Around 8415 Today

Some fall in USD may be good for EM (s) including Indian market for the time being; but Nifty need to stay above 8485-8510 for any further rally from here; otherwise may fall in the coming days.


As par early SGX indication, Nifty Fut (Jan) may open around 8415 (+12 points), almost flat after mixed Global/Asian cues following confirmation of “Hard Brexit” stance by UK PM & renewed concern about “Trumponomics” just ahead of the inaugural day. Japan is trading in negative as a result of some strength in Yen; but China is in positive territory after some recovery in Yuan & its home prices.


Although, UK’s stance of “Hard Brexit” was almost discounted even before the speech, the point that it will go through the Parliament approval procedure for the final deal with EU (not the invocation of the Article-50) has somewhat accelerated the huge short covering in GBPUSD along with the perception that by May’s official statement about modalities of the Brexit procedure, a great deal of uncertainty has removed. Although, basically the ball is now with the EU authorities for subsequent trade agreements with the UK, market will also watch keenly the verdict of the UK SC on the need for Parliament approval for the invocation of the Article-50 issue and there are still lots of uncertainty & concerns about UK’s future.


Although, fall in USD after Trump’s comments and UK’s confirmation about Hard Brexit stance may be positive for EM & Indian market, it may be a temporary relief before Trump taking charge of the office on 20th Jan. All will now depend upon his actual plan of “Trumponomics” and its implementation on the ground.


Back to home, Indian market sentiment may get some support after the controversial double/triple taxation issues for the FPIS is put on hold by the Govt; although it’s is expected line, the consistent flip-flops by the tax authority and lack of a predictable & fair tax regime may continue haunt the “angel investors” (FPIS).


Hints for actionable trading ideas:


Technically, NF needs to stay above 8485-8510 zone for any further rally towards 8545*-8585 & 8645-8685* area for the day (under bullish case scenario).


On the other side, sustaining below 8460-8425 area, NF may further fall towards 8380*-8325 & 8285*-8215 zone for the day (under bear case scenario).


Similarly, BNF (LTP: 19077) need to stay above 19275 zone for further rally towards 19350*-19550 area for the day (under bullish case scenario).


On the other side, sustaining below 19200 area, BNF may further fall towards 19100*-18900/18800 zone for the day (under bear case scenario).



SGX-NF




                                                                                                       

 BNF

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