Nifty May Open In Positive Tone Following Stable Global Cues As Market Is Hopeful For Passage Of US Tax Cut Plans By Trump Despite Health Care Reform Failure

Market Mantra: 28/03/2017 (08:30)

SGX-NF: 9095 (+28 points)

Key support for NF: 9060-9015

Key resistance for NF: 9150-9195

Key support for BNF: 21000-20900

Key resistance for BNF: 21250-21350

As par early SGX indication, Nifty Fut (March) may open around 9095, slightly in positive territory amid mixed global cues. As par some reports, Trump may made a deal with his DNC oppositions for a revised Trumpcare and market is also hopeful that eventually the dissidents RNC members may also support Trump’s tax reform bill.

Apart from Trump Tantrum,, 31^st March year/QTR end fund flow, specially year end seasonal Japanese Yen repatriation factor may also be responsible for the recent spate of weakness in USDJPY and all eyes will be now on 110 level on the same & 99 on DXY, which are technically very important support as of now.

Back to home, all eyes may be on the ongoing talks of banking NPA reform, but that may be an incremental process and we may not see any immediate big bang action by the Govt despite high probability of a “big” announcement.

Domestic market may also look into further fine prints of GST bills and its impact on the real world of business & trading community and also on the monsoon factor this year after Skymet predicted a 5% below normal rainfall this year.

Kotak Bank (LTP: 871) may be on the news after an “unexpected” announcement of further fund raising yesterday, may be for RBI directive for dilution of promoter’s stake or for an acquisition (Axis or KTK ??), in line with the “animal spirit” theme by its promoter for an inorganic expansion.

Technically, the stock need to sustain above 895-905 area for any further rally towards 925-945 & 975 zone; otherwise it may come down towards 832-790 area again in the coming days.

Hints for actionable trading idea:

Time & Price action suggests that, Nifty Fut (March) has to sustain over 9150 area for further rally towards 9175/9195-9215 & 9235-9275 for the day/ in the short term (under bullish case scenario).

On the other side, sustaining below 9130-9100 area, NF may fall towards 9060-9015 & 8980/8960-8895/8865 area for the day/ in the short term (under bear case scenario).

Similarly, BNF has to sustain over 21350 area for further rally towards 21500-21675 area for the day/ in the near term (under bullish case scenario).

On the other side, sustaining below 21300-21250 area, BNF may fall towards 21000-20900 & 20700-20600 zone for the day/ in the near term (under bear case scenario).

                        
                                                                               SGX-NF

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