Monday, 30 January 2017

Nifty May Open & Stay Under Pressure Amid Tepid Global Cues Following Trump Tantrum On US Immigration Policy And FPIS Worry About Actual GAAR Mechanism; Some Long Unwinding May Come Ahead Of Budget



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

Watch 8580-8500 & 8650-8705 Zone In Nifty Fut (Jan), Which May Open Around 8620 Today

As par early SGX indication, Nifty Fut (Feb) may open around 8620 (-52 points) following tepid global cues amid holiday thinned Asian market. 

Global market seems to be concerned about Trump’s immigration policy controversy, which saw detention of hundreds “legitimate” US visitors/immigrants in various US airports on the weekend and eventually, American judiciary has intervened to stay some part of the Trump’s immigration rhetoric. Now, various global corporates giants (Google etc) and also UK/Germany/Canada/EU authorities are condemning the executive orders of Trump to ban visitors from seven Muslim dominated countries; as par report, Pak may also soon come under this list.

Incidentally, India is the biggest migrant countries for the US destinations and although, Indians need not to concern about this sudden immigration step taken by Trump as of now, as par reports, Indian techies and also other workers/spouses in US are now in great tension over their future in US.

Japan/BOJ authorities are also worried about Trump’s trade & immigration protection policies, which may eventually weaken the USD/US bond yields and made the Yen stronger.

Back to home, market may keenly watch reaction from the FPIS for GAAR implementation from April’17. Although, Govt is assuring time & time again that GAAR will be applied only in suspicious cases of the sole purpose of tax evasion, regulatory framework and various legal hurdles may make the FPIS little worried in future also.

Market may also look to the ICICI result today after L&T’s “good” Q3 show but tepid guidance, apart from various budget related probabilities. 

Technically, for any rally, L&T need to sustain over 1495-1525 area; otherwise it will come down towards 1380-1330 zone (LTP: 1440)

Hints for actionable trading idea:

Looking at the chart, NF need to sustain above 8600-8580* area; otherwise it may further fall towards 8500*-8425 & 8385*-8315 zone for the day (under bear case scenario).

On the other side, for any rally, NF need to sustain above 8650-8685* zone for rally towards 8705/8725*-8765/8795 zone for the day (under bullish case scenario).

Similarly, BNF (LTP: 19804) need to sustain above 19450 area; otherwise it may further fall towards 19250*-19000 zone for the day (under bear case scenario).

On the other side, sustaining above 19900 area, BNF may further rally towards 20000-20350 zone for the day (under bullish case scenario).



SGX-NF




 BNF

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