Monday, 17 April 2017

Nifty May Open 30 Points Down Amid Tepid Global Cues Following Lingering Geopolitical Tensions & Tepid US Economic Data; All Eyes May Be On WPI Data & Banks(PSBS) After RBI Tightening On NPA Norms



Market Mantra: 17/04/2017 (08:45)

SGX-NF: 9150 (-30 points)

Key support for NF: 9115-9085

Key resistance for NF: 9200-9235

Key support for BNF: 21640-21500

Key resistance for BNF: 21775-21875

As par early SGX indication, Nifty Fut (Apr) may open around 9150, gap down following tepid global cues amid lingering geopolitical tensions. On last Friday, US bombed to ISIS in Afghanistan with a MOAB (mother of all bombs) in an apparent warning to NK, which on the other hand, attempted a failed missile launch yesterday. Although, being a nuclear power, NK may be immune to sudden “surgical strike” from US, there may be still concern about a serious conflict in the event of a attack by US or a nuke test again by NK. China & Japan is trying their best to pacify the situation between US & NK, which is so far engaged in a serious “war of words” only.

Apart from geopolitical concerns, US economic data (Core CPI, retail sales) also flashed below expectations on Friday and the overall mixed set of economic data, which indicates that despite record consumer sentiment, consumer spending is tepid and thus, Fed may not hike rate in June. Also, a growing geopolitical tension involving US & NK/Syria may prevent Fed for further multiple rate hikes in 2017. Thus, USD is being sold across the board and flight to safety towards Yen & USTSY bonds; risk trade is off.

Back to home, after tepid result & guidance from Infy, market will look further results from IIB, Yes Bk this week also to the WPI to be released today. Some PSBS may be under pressure today after RBI tweaks norms for NPA criteria for risk assessments for the banks.

Hints for actionable trading idea: Nifty & Bank Nifty Fut

Time & Price action suggests that, Nifty Fut (Apr) has to sustain over 9200 area for further rally towards 9235-9275 & 9305-9335 for the day/in the short term (under bullish case scenario).

On the other side, sustaining below 9180 area, NF may fall towards 9115-9085 & 9040-8985 area for the day/ in the short term (under bear case scenario).

Similarly, BNF has to sustain over 21825 area for further rally towards 21875-21975 & 22050-22150 area in the near term (under bullish case scenario).

On the other side, sustaining below 21775 area, BNF may fall towards 21640-21500 & 21340-21150 area in the near term (under bear case scenario).




INFY

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