Wednesday, 8 February 2017

Nifty May Open Almost Flat Amid Tepid Global Cues Ahead Of RBI Policy; Concerns Of FY17 GDP Estimate Downgrade By MPC Along With Some Hawkish Bias May Weigh On The Market Sentiment As 0.25% Rate Cut May Be Already Discounted



Market Mantra: 08/02/2017 (08:30)

Watch 8835-8740 & 8855-8900 Zone In Nifty Fut (Jan), Which May Open Around 8800 Today

As 0.25% much anticipated repo rate cut may have been already discounted by the market, only some surprise like 0.50% cut may cause further rally in NF towards 8900 area; will RBI oblige today by cutting 0.50% to “kick start the economy after demonetization blues” ?

On the other side, a 0.25% rate cut accompanied by Hawkish commentary from Patel may also ignite some selling towards 8700.

As par early SGX indication, Nifty Fut (Feb) may open around 8800 (+10 points), almost flat following mixed Global/Asian cues. Overnight US market was also mixed as oil slumped amid surprised API inventory report and increasing supply from US shale oil companies. Also, recent data may be indicating a tepid demand for gasoline from China & US. 

USD has gained some strength on the back of increasing EU political risks and concerns of Chinese FX reserve depletion to defend Yuan. China market is also under some pressure.

Back to home, apart from RBI policy decision, all eyes may be also on the GDP forecast by RBI for FY-17 & 18 and market may be concerned of probable downwards revision of the same by RBI this time (6.2% GDP estimate for FY-17).

Hints for actionable trading ideas:

Technically, NF has to sustain over 8855 zone for further rally towards 8900*-8950 & 8995*-9075 area for the day (under bullish case scenario).

On the other side, sustaining below 8835-8805 area, NF may fall towards 8740*-8690 & 8625*-8565/8495 zone for the day (under bear case scenario).

Similarly, BNF (LTP: 20375) has to sustain over 20550 zone for further rally towards 20650*-20800 & 20950*-21350 area for the day (under bullish case scenario).

On the flip side, sustaining below 20500 area, BNF may fall towards 20300-20200* & 20000*-19750 & 19600*-19350 zone for the day (under bear case scenario).




SGX-NF



BNF

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