Nifty May Open Almost Flat Following Mixed Asian Cues; Hopes Of GST From July’17 May Help (?); But HDFC Bk Trade Fiasco On Last Friday May Also Drag The Market As SEBI Ordered The Custodians Not To Settle The Trade Post 13:40 For Breaching FII Limit

Market Mantra: 20/02/2017 (08:30)

Watch 8855-8800 & 8875-8925 Zone In Nifty Fut (Jan), Which May Open Around 8825 Today

Stock in the news: Havells (for acquiring Lloyds Elec for Rs.1600 cr); the deal may be EPS dilutive for the initial years amid various challenge of marketing, distribution & severe competition in the retail market

Technically, Havells (LTP: 426) has to sustain over 450-460 zone for any further rally towards 480-530 in the near term.

On the other side, sustaining below 435 area, it may fall towards 415-405 & 385-370 and further to 315-302 zone in the near term.

As par early SGX indication, Nifty Fut (Feb) may open around 8825, almost flat following mixed Global/Asian cues. Japan is trading in negative despite USDJPY got strength as morning export data came tepid due to decreased export to USA under new administration of Trump (?). But, China is trading almost 0.5% higher as PBOC steps in to ease money market liquidity, which helped the Chinese bond yields. On Friday, US market was flat, but also able to close near record high amid hopes of “Trumponomics” and Trump’s plan of a “substantial US tax cut”. Today US market is closed and all eyes may be on the increasing EU geo-political risks (Brexit, France). Also, in Germany, as par latest poll, Merkel is trailing in popularity count & approval rate. 

Back to home, all eyes will be on the brightening prospect of GST from July’17 after some hurdles passed in the last meeting on 18^th Feb at Rajasthan. Although, there will be another GST meeting on 4-5^th March, just before the Parliament session and another important meeting for final shape of the GST, time and administrative & business community (SME) preparedness may be a challenge. A hurriedly implemented GST with faulty designs may disrupt the economy again after the demonetization.

All eyes may be on the HDFC Bank counter again as SEBI ordered the custodians not to settle the trade done on Friday (after 13:40 presumably) as FII limit already breached again.

Hints for actionable trading ideas:

Technically, NF has to sustain over 8875 zone for further rally towards 8925-8955 & 8995-9035 area for the day (under bullish case scenario).

On the other side, sustaining below 8855 area, NF may fall towards 8800-8770/45 & 8715-8690/75 zone for the day (under bear case scenario).

Similarly, BNF (LTP: 20540) has to sustain over 20650 area for further rally towards 20750-20950 & 21150-21400 area in the near term (under bullish case scenario).

On the other side, sustaining below 20600 zone, BNF may fall towards 20500-20350 & 20150-19950 area in the near term (under bear case scenario).

NF

 BNF

 HAVELLS