Nifty May Open Almost Flat Following Tepid Global Cues As G-20 Meet Failed To Yield Any Official Announcement Against The “Trade Protectionism” & Fed Rally Fizzles; Domestic Market May Come Under Renewed Pressure As Appointment Of UP CM May Send Wrong Signal To The Investors

Market Mantra: 20/03/2017 (08:30)

SGX-NF: 9160 (-8 points)

Watch 9195-9115/9075 & 9235-9275 Zone In Nifty Fut (March)

As par early SGX indication, Nifty Fut (March) may open around 9160, almost flat following tepid global cues as overnight US market closed weak as Fed rally fizzles and USD also failed to recover as US economic data was mixed. Also, there was immense confusion over the fate of Obamacare and actual shape of “Trumponomics”. Over the weekend, G-20 meet also failed to yield any firm result as there was no official word about trade protectionism stance being taken by the world’s no one economy (US); although there was some word against currency manipulation by some of the alleged countries (EU/Japan/China etc). Thus, influence of US policy may be evident in the G-20 meet and it’s not great for the globalization.

Back to home, after big win of BJP in UP, a new CM was appointed over the weekend after intense speculation over various names. Market may be expecting someone technocrat like Manoj Sinha; but selection of Yogi along with two other deputies may also keep the investors cautious as it may indicate that BJP will be more concerned about its hinduvta agenda for the UP politics, eyeing for 2019 general election; Govt’s reform initiative may be seen as sitting on the backburner, although it may be politically correct for the BJP. But at the same time, it may be also too early to take such conclusion.

All eyes may be also on the real progress of GST as it may be real by July’17, although time is very short and an appropriate implementation may be a challenge both for the Govt and the industry/traders.

PSBS may be also in focus after Govt’s decision for selective recapitalization for it based on some strict performance criteria.

Hints for actionable trading idea:

Time & Price action suggests that, Nifty Fut (March) has to sustain over 9215 area for further rally towards 9235-9275 & 9350-9425 for the day/ in the short term (under bullish case scenario).

On the other side, sustaining below 9195 zone, NF may fall towards 9130/15-9075 & 9035-8995 area for the day/ in the short term (under bear case scenario).

Similarly, BNF has to sustain over 21400 area for further rally towards 21500-21675 & 21855-21950 area for the day/ in the near term (under bullish case scenario).

On the other side, sustaining below 21350 area, BNF may fall towards 21140-21000 & 20900-20750 zone for the day/ in the near term (under bear case scenario).

SGX-NF