Nifty May Open Upbeat Amid Fall In USD & Mixed Global Cues After Trump’s Presser Turns Into A “Joker Show” Rather Than Any Specific Plans For The Much Awaited “Fiscal Stimulus”

Market Mantra: 12/01/2017 (08:30)

Watch 8405-8345 & 8435-8485 Zone In Nifty Fut (Jan), Which May Open Around 8421 Today

Pharma/Biotech/IT and metals also may be in pressure after Trump’s rhetoric and lack of any specific spending plans for infra to “rebuild America again”.

Upbeat oil after Saudi plan of production cut and weak USD despite some supply gluts may be a concern for domestic market.

All eyes will be on the EC (for any final stance regarding budget day), TCS result and CPI & IIP later in the day.

Some hawkish comments by RBI Gov and concern for India’s high Govt debt/GDP ratio & extremely high combined fiscal deficit/GDP (6.75%) may also drag the domestic market sentiment despite huge enthusiasm by the investors in the ongoing VGGS.

As par early SGX indication, Nifty Fut (Jan) may open around 8421 (+35 points) following upbeat domestic sentiment (better than expected Q3FY17 results by some of the Pvt banks so far despite demonetization concerns) and some fall in USD/US bond yields.

Yesterday’s much awaited official presser by Trump was actually devoted to defend himself against some Russia related personal scandal and prevention of hacking by Russia & China and other interested countries.

Rather than divulging any specific credible plans to “rebuild America”, Trump was also busy for making a plan to build a wall along Mexico border and also slumped the Pharma/Biotech companies for unethical profiteering.

In brief, the whole presser turns into a “Joker Show” at some point of time rather than an official briefing (Q&A) by a President elect of the world’s most powerful country. All these may be turn into a serious political risk for US in the coming months and there may be even an impeachment motion against Trump, if Russia related personal scandal turns into reality.

Hints for actionable trading ideas:

Technically, NF has to sustain over 8435 zone for further rally towards 8485*-8510 & 8545-8585* area for the day (under bullish case scenario).

On the other side, sustaining below 8405 area, NF may fall towards 8345-8325/8290* & 8230*-8180 zone for the day (under bear case scenario).

Similarly, BNF (LTP: 18830) need to sustain above 19000 area for further rally towards 19200*-19375 for the day (under bullish case scenario).

On the other side, sustaining below 18900 zone, BNF may further fall towards 18750*-18450 & 18300*-18200 area for the day (under bear case scenario).

 SGX-NF

 BNF