Nifty May Open Almost Flat Amid Lackluster Global Cues; Domestically, All Eyes May Be On The Mfg PMI Today After Tepid Macro Data & Single Digit Growth In Sales For Major Auto Cos And No Big Bang Announcement Of NPA Resolution By The Govt

Market Mantra: 31/03/2017 (08:30)

SGX-NF: 9210 (+12 points)

Key support for NF: 9175-9115

Key resistance for NF: 9235-9275

Key support for BNF: 21450-21350

Key resistance for BNF: 21675-21850

As par early SGX indication, Nifty Fut (Apr) may open around 9210, slightly in positive territory following muted Global/Asian cues. China is closed today; but more or less in line with estimates PMI data for China & Japan has stabilized the market despite some protectionist rhetoric by Trump before his key meeting with the China counterpart.

Globally, all eyes may be on the FOMC & ECB minutes and also on the Friday US NFP job data.

Back to home, there was no big bang announcement regarding any Super ARC or bad bank by the Govt in its cabinet meeting on Friday as being expected by the market. Such idea of a Govt sponsored bail out of NPA of the private corporate sector or even for the PSBS may be politically very difficult and thus Govt is persuading various methods under the existing mechanism.

As par various indications, GST may be finalized in all aspects only by May’17 and thus a July’17 roll out may also be looking very challenging.

All eyes may also be on the RIL after better than expected customer additions in the Prime category; but further delay in actual paid service launch may be also an indication of some infrastructure lacuna and some lack of confidence on the part of the R-Jio.

Technically, RIL need to sustain over 1335-1350 area for further rally; otherwise it may come down again.

Hints for actionable trading idea:

Time & Price action suggests that, Nifty Fut (Apr) has to sustain over 9235 area for further rally towards 9275-9350 by today / in the short term (under bullish case scenario).

On the other side, sustaining below 9215 area, NF may fall towards 9175-9140/9115 & 9075 area by today / in the short term (under bear case scenario).

Similarly, BNF has to sustain over 21675 area for further rally towards 21750-21850 area by today / in the near term (under bullish case scenario).

On the other side, sustaining below 21625 area, BNF may fall towards 21450-21350 zone by today / in the near term (under bear case scenario).

SGX-NF