Thursday, 9 March 2017

Nifty May Open Shaky Following Tepid Global Cues Amid Slump In Oil And Domestic Concern Of A Fractured Verdict In State/UP Polls & An Impending Fed Rate Hike Next Week; 8890-8865 Zone In NF May Be Vital For Any Support Ahead Of Exit Polls Today



Market Mantra: 09/03/2017 (08:30)

Watch 8975-8865 & 8995-9075 Zone In Nifty Fut (March), Which May Open Around 8900 Today

As par early SGX indication, Nifty Fut (March) may open around 8900 following tepid global cues after overnight slump in oil for concerns of sustained supply glut & an impending Fed rate hike next week as a result of blockbuster ADP job data released yesterday. Also, in the morning, overall Chinese core CPI & PPI data is below market estimates and also against the global reflation perception; by incrementally higher core PPI of Chinese goods, China is expected to distribute its inflation for the rest of the world, especially US & EU and also Japan (DM). As a result, global market is somewhat subdued today with an added concern of France political risk and ongoing saga of Brexit.

Amid all these global concerns and hawkish Fed, Indian market also looked nervous today at the beginning ahead of crucial exit polls released later in the day after market hours. Although, as par unofficial betting sources, BJP is poised for a big win in all the states including UP except Punjab this time as despite DeMo, there is no let up in popularity of NAMO, who is being seen as the “friend of the poor” after his “war on black money”, it may not be sacrosanct.

As par some party sources, BJP top brass is not itself so much confident and is apprehending a fractured verdict in UP, the most important state now which is seen as a mini referendum for NAMO; it’s also very true that there is now no credible political leader to compete with NAMO at national level, but Akhilesh may be a formidable force in UP politics also. Thus, market may take wait & watch mode till the actual result on Saturday, 11th March before jumping in as ultimately, an election is full of uncertainty; recent example may be Bihar.


Hints for actionable trading idea:


Time & Price action suggests that, Nifty Fut (March @8900) has to sustain over 8975 area for further rally towards 8995-9035 & 9075-9125 for the day/ in the short term (under bullish case scenario).

On the other side, sustaining below 8975 zone, NF may fall towards 8935-8890 & 8865-8795 area for the day/ in the near term (under bear case scenario).

Similarly, BNF (LTP: 20777) has to sustain over 20950 area for further rally towards 21050-21150 & 21350-21500 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 & 20490-20250 zone for the day/in the near term (under bear case scenario).




 SGX-NF

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