Wednesday, 19 April 2017

Nifty Closed Almost 22 Points Higher After A Range Bound Session Amid Tepid Global Cues & Mixed/Muted Set Of Q4FY17 Report Cards And Subdued India GDP Growth Forecast By IMF for FY-18



Market Wrap: 19/04/2017 (19:00)

NSE-NF (April): 9145 (+22 points; +0.24%)

NSE-BNF (April): 21650 (-43 points; -0.20%)

IN 10Y G-SEC: 6.854 (-0.12%)

USDINR (Apr): 64.65 (-0.06%)

For 20/04/2017:

Key support for NF: 9115-9060

Key resistance for NF: 9200-9255

Key support for BNF: 21500-21300

Key resistance for BNF: 21675-21775

Time & Price action suggests that, Nifty Fut (Apr) has to sustain over 9200 area for further rally towards 9255-9310 & 9375-9425 in the short term (under bullish case scenario).

On the other side, sustaining below 9180 area, NF may fall towards 9115-9085/60 & 9025-8970 area in the short term (under bear case scenario).

Similarly, BNF has to sustain over 21775 area for further rally towards 21875-21975 & 22050-22150 area in the near term (under bullish case scenario).

On the other side, sustaining below 21725-675 area, BNF may fall towards 21600-21500 & 21400-21250 and further to 21150-20900 area in the near term (under bear case scenario).

Nifty Fut (Apr) today closed around 9145, up by 0.25% in a closing minutes short covering after failing to break the vital positional support of 9085 in a number of attempts. Most of the session was very range bound in the absence of any major fresh domestic or global triggers and NF made a day low of around 9097 & closing minutes high of 9147.

Indian market today opened in a flat note following tepid global cues amid ongoing geopolitical tensions with NK-US, some regulatory concerns on Chinese stock market, mixed set of earnings in the US market and political uncertainty over French & British elections.

China market was under pressure for the last few days after Chinese securities regulator tightened their supervisions on the country’s stock market and warned about some asset bubbles there. Also, recent slump in iron ore prices & increasing tightening by PBOC and downbeat GDP projection by IMF yesterday may also be responsible for some risk off there.

Among all these ongoing global concerns, Indian market was also under some stress today after yesterday’s subdued GDP growth forecast by IMF for FY-18, cautious tone of IMD regarding monsoon this year, mixed/tepid sets of earnings from Nifty heavy weights so far. Although, actual earnings from TCS may be muted, positive commentary about operating margin & less impact of the H1B Visa issues may have limited the downside today.

Indusind Bank also reported below expected Q4 earnings on the back of unexpected surge in provisions; although other operating ratios of the bank were quite upbeat along with future plan of expansions.

Technically, IIB (LTP: 1422) need to sustain over 1445-1465 area for further rally towards 1485-1520 & 1550-1600 and 1660 zone in the near to long term; otherwise it may correct and sustaining below 1405-1375 area, may further fall towards 1345-1320 & 1285-1245 territory in the coming days.

PSBS and also some private banks were under pressure today after RBI virtually announced another “Mini AQR” to recognize hidden stressed assets or future potential NPA. Although, RBI is taking various steps to recognize the toxic stressed assets (NPA/NPL) and ensuring proper provisioning by the banks thereon to reduce any systemic risk for future, the actual resolution process may be very tepid. Private Banks were also under pressure today due to significant exposure in telecom sector, which is currently under a great stress.

After market hours today, Yes Bank published its Q4 numbers, which may be slightly above estimates on PAT basis; but there was also significant surge in provisions & stressed assets (from one specific account to the tune of Rs.911.5 cr); although the Bank is confident for recovery of it in the next QTR, the stock may correct to some extent as its already rallied quite a lot on expectations of a super earning growth.

Technically, Yes Bank (LTP: 1605) need to 1635-1655 area for further rally towards 1675-1730 & 1810 zone in the near to long term; otherwise it may fall towards 1590-1555 & 1535-1460 area in the coming days.
 


SGX-NF


BNF 


IIB
 
 YES BK

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