Friday, 17 February 2017

Nifty May Open Higher Amid Drops In USD Despite Tepid Global Cues; Buzz Of HDFC Bank’s FII Restriction Removal (Temporary) Might Help The Market Sentiment Initially



Market Mantra: 17/02/2017 (08:30)

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

For HDFC Bank (LTP: 1328), watch 1350-1380 zone for possible hurdle; 1320-1300 being immediate positional support for the stock and below that expect 1277-1240 & 1210; consecutive closing above 1320, mid to long term target of HDFC Bank may be 1450-1485 zone.

As par early SGX indication, Nifty Fut (Feb) may open around 8825 (+39 points), in a positive tone, may be supported by some drops in USD/US bond yields despite tepid Global/Asian Cues. Market buzz that FII may turn heavy buyers after HDFC bank is removed from their restriction list due to recent equity dilution after exercise of some ESOPS. HDFC bank have good 30% weightage on the Bank Nifty; but any FII buy-sell in HDFC Bank will be restricted in the FII windows only and DII may take any higher price for profit booking also. So, impact may not be great and may also be very temporary.

Overnight US market was tepid and USD/US bond yields also fall to some extent despite another set of block buster economic data and an unusual hawkish script of Fed. Some of the reasons may be lack of any specific plan by Trump for his “Trumponomics” and “phenomenal” tax plan despite daily doses of press conferences and twitters. Incidentally, in one of his tweets yesterday, Trump was seen to take personal credit for such “phenomenal” rise in US EQ market even without any specific plan of the tax cuts and SPX dips immediately after that. Another reason of dips in USD may be that Trump & Co (US policymakers) are now against a strong USD contrary to earlier rhetoric and increasing political, administrative risks in WH, which may be quite chaotic now.  

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 8800-8745 & 8715-8675 zone for the day (under bear case scenario).

Similarly, BNF (LTP: 20302) has to sustain over 20400 area for further rally towards 20550-20650 & 20750-20950 area in the near term (under bullish case scenario).

On the other side, sustaining below 20350 zone, BNF may fall towards 20200-20100 & 19950-19850 area in the near term (under bear case scenario).




SGX-NF



BNF



 HDFC BK

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