Thursday, 23 March 2017

Nifty May Open Mild Gap Up Amid Mixed Global Cues Ahead Of Crucial Obamacare/Trumpcare Voting Suspense In US Senate



Market Mantra: 23/03/2017 (08:30)

SGX-NF: 9075 (+28 points)

Vital support for NF: 9025/8995-8950

Vital resistance for NF: 9125-9165/9195

Vital support for BNF: 20700/20650-20450

Vital resistance for BNF: 21100-21250/21350

As par early SGX indication, Nifty Fut (March) may open around 9075, slightly in positive tone following mixed global/Asian cues ahead of crucial voting today in US senate on repel of Obamacare & replacement for a new Trumpcare. Global/US market may be also concerned on continuing squabbling about Trump’s Russian connection and wire tapping allegation, which may turn into a serious US political issue in the days ahead undermining the rhetoric of Trumponomics.

Yesterday, USDJPY fall to multi-week low after sad attack on UK Parliament in an apparent act of terrorist activities, in which 5 persons including the attacker and 40 other persons were injured (flow to the safety of Yen in times of such geo-political/terrorist act). USD later recovered as the matter has ended rather quickly and seemed that it may not be a well organized terrorist attack done by someone like ISIS; it may be an act by some disgruntled minds/jehadi elements.  

With little domestic cues, all eyes may be on the US senate today and if Trump wins there, expect some “risk on” mode for the global as well as the Indian market today; otherwise Nifty may break the level of 8995 zone on concern of stretched valuation and earning woes of banking sector (PSBS/some old private banks); also development of GST may be keenly watched as Govt is still not 100% sure of its implementation from July’17, with barely 3 months in hand; Govt need to take a bold decision in this regard.

Hints for actionable trading idea:

Time & Price action suggests that, Nifty Fut (March) has to sustain over 9125 area for further rally towards 9165-9195 & 9235-9275 for the day/ in the short term (under bullish case scenario).

On the other side, sustaining below 9105 area, NF may fall towards 9060-9025/8995 & 8950-8865 area for the day/ in the short term (under bear case scenario).

Similarly, BNF has to sustain over 21100 area for further rally towards 21250-21350 & 21500-21650 area for the day/ in the near term (under bullish case scenario).

On the other side, sustaining below 21050 area, BNF may fall towards 20950-20650 & 20450-20325/195 zone for the day/ in the near term (under bear case scenario).



 SGX-NF

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