Friday, 3 March 2017

Nifty May Open Lower Around 8880 Amid Muted Global Cues As “Trumpophoria” Wanes On Concerns Of Stretched Valuation & Hawkish Fed; Expect More Correction Only If NF Dips Below 8840-8770



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

All eyes will be on Yellen & host of Fed speakers today to have an idea, if March hike is indeed coming or not with FFR now around 90%

Domestically, all eyes may be on the Indian bond market & Service PMI (Feb) today (prior: 48.7) amid ongoing confusions about Q3 GDP figure

Watch 8935-8840 & 8955-8995 Zone In Nifty Fut (March), Which May Open Around 8880 Today


As par early SGX indication, Nifty Fut (March) may open around 8880 (-32 points) following tepid global cues after overnight fall in US market (-0.53%) as Trumps speech euphoria wanes and market began to think reality than fiction about Trump’s “wonderland”. USD/US bond yields are also under pressure as Trump trade fades ahead of Yellen today. As the things stand as of now, a dovish Yellen may be the most surprising event now as FFR now indicates almost 90% probability of a March rate hike, thanks to consistent hawkish script by various Fed speakers and a string of upbeat/mixed US economic data. US NFP data will not be published today due to holiday on Monday and it will be flashed next Friday.


Today’s morning data from China (Service PMI) was also tepid and slightly below estimates at 52.6 (estimate 53.3; prior: 53.1). China is trading lower and also Japan is depressed as Yen got some strength.


Hints for actionable trading idea:

Technically, Nifty Fut (March @8880) has to sustain over 8955 area for further rally towards 8995*-9035 & 9075-9125 for the day (under bullish case scenario).

On the other side, sustaining below 8935 zone, NF may fall towards 8875- 8840* & 8790/8770-8715 area for the day (under bear case scenario).

Similarly, BNF (LTP: 20623) has to sustain over 20950 area for further rally towards 21050-21150* & 21350-21500 for the day/near term (under bullish case scenario).

On the other side, sustaining below 20900 area, BNF may fall towards 20750-20500 & 20400*-20250 zone for the day/ in the near term (under bear case scenario).



 SGX-NF

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