Nifty May Open In Positive Tone Amid Upbeat Global Cues After Trump Promised About “Phenomenal Tax Plan” Within Next 2-3 Weeks; Domestically All Eyes May Be On The SBI, BOB, M&M Result & IIP Data Today

Market Mantra: 10/02/2017 (08:30)

Watch 8835-8785 & 8855-8900 Zone In Nifty Fut (Jan), Which May Open Around 8830 Today

As par early SGX indication, Nifty Fut (Feb) may open around 8830 (+25 points) following positive Global/Asian cues. Yesterday’s US economic data (initial jobless claims) was good and moreover Trump promised some major stimulus for Airline sectors in a meeting with the concerned CEO(s) and also announced that, he will unveil “some phenomenal tax cut planning”  within next 2-3 weeks (probably by March 1^st Week). All these has again ignited hopes of “Trumponomics” (major fiscal/Govt spending, tax cuts, deregulation etc) and USD/US bond yields are getting stronger across the board along with US stock futures.

Nikkei is also trading higher ahead of much awaited meeting between Abe & Trump later today and a scheduled Golf session on the weekend to discuss trade and FX issues. Clearly, Trump being a very suite businessman, knows very well how to make a deal and he knows “attack is the best defence” in order to get something more rather than nothing; recent China letter may be another such example.

Back to home, all eyes will be on the USDINR equation after unexpected “Hawkish Hold” by RBI and late rebound of US bond yields. Market may also watch more Q3 earnings, specially from SBI & BOB today to have a glimpse about stressed assets in the system.

A “Neutral” RBI may be good for INR, but may be also bad for EQ market as it means that rate cut cycle is over for FY-18.

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 area, NF may fall towards 8785*-8715 & 8675*-8595 zone for the day (under bear case scenario).

Similarly, BNF (LTP: 20225) 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