Nifty May Open Almost Flat Following Tepid Global Cues As Fantasy Of “Trump Trade” May Be Turning Into Reality; Domestic Market May Be In “Wait & Watch” Mode Ahead Of Weekend Results Of State Polls & US NFP Job Data

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

Watch 8995-8925 & 9035-9075 Zone In Nifty Fut (March), Which May Open Around 8970 Today

Stock in focus:  Wockpharma (LTP: 737) under US FDA observation/WL and may be in a deep trouble for all of its plants to manufacture Pharma products for US due to severe violation of CGMP and current valuation multiple (PE) is also extremely high.

Technically, the stock need to sustain above 740-775 zone for any rally towards 825-900 & 960 area; otherwise it may come down and sustaining below 695-680 zone, may further fall towards 655-625 & 570-540 area in the near term. Investors can accumulate in the lower range around 570-540 for better risk/reward factor.

As par early SGX indication, Nifty Fut (March) may open around 8970 (-3 points), almost flat following tepid global cues. Overnight US market was down for concern of “Obamacare” & Pharma policies and there was also a Wiki leak for some old CIA hacking documents. In the morning, Japan GDP (+1.2% YOY) came tepid and also below street estimates; but on closer look, private capex was better, may be due to export thrust, considering recent devaluation of Yen.

In any way, USDJPY got weaker as BOJ may refrain from any incremental QQE as Fed is thinking to hike thrice in 2017 and a stronger Yen also due to regional geo-politics concern has made Nikkei lower.

Back to home, lack of any meaningful cues ahead of the crucial state poll results (referendum for NAMO) may keep the overall market range bound, although BJP’s win is almost certain now, considering various unofficial betting sources. Still, an election is an election, full of uncertainty and thus investors may be in wait & watch mode before jumping in.

Hints for actionable trading idea:

Time & Price action suggests that, Nifty Fut (March @8970) has to sustain over 9020-9035 area for further rally towards 9075-9125 for the day/ in the short term (under bullish case scenario).

On the other side, sustaining below 8995 zone, NF may fall towards 8945-8925 & 8865-8795 area for the day/ in the near term (under bear case scenario).

Similarly, BNF (LTP: 20740) has to sustain over 20950 area for further rally towards 21050-21150 area for the day/ in the near term (under bullish case scenario).

On the other side, sustaining below 20900 area, BNF may fall towards 20750-20600 & 20500-20250 zone for the day/in the near term (under bear case scenario).

SGX-NF

 WOCPHARMA