Nifty May Open Almost Flat Following Tepid Global Cues Due To Renewed Geopolitical Issues With NK & Trump’s Trade Protection Stance & An Impending Threat Of A Temporary US Govt “Shut Down”

Market Mantra: 28/04/2017 (08:30)

SGX-NF: 9355 (+3 points)

For the Day:

Key support for NF: 9315-9265

Key resistance for NF: 9425-9510

Key support for BNF: 22150-22000

Key resistance for BNF: 22425-22525

As par early SGX indication, Nifty Fut (May) will open around 9355, almost flat following tepid global cues. Overnight US market also closed almost flat, but off the day low amid mixed economic data & earnings. After Trump’s disappointment with his tax vision, US market came under pressure yesterday following Russia’s warning that situation in NK is going for serious warfare.

Although, Trump is now emphasizing on dialogs to resolve the NK issues, he is also warning for a full fledged war with NK, if such situation arrives. Meanwhile, after repeated squabbling with NAFTA trade deal involving Canada & Mexico, Trump is now eyeing his own US allies South Korea to pay for the “Thaad” missile defence system by $1 bln, which America is planning to install at SK for any NK missile attack; otherwise SK may also face termination of its existing trade deal with the US.

Clearly, Trump as a hardcore businessman, do not believe in “Free Lunch” and want to get paid for US service to protect its own allies including NATO partners, such as Germany, Japan etc. Thus, Trump’s vision may also be interpreted as to create or take opportunity of the geopolitical tensions across the world and give demo of its missile/military powers and sell those military or defence products to his valuable clients (SK/Japan/Germany/Saudi Arabia etc), thus making America great again. Ongoing various geopolitical tensions may ensure that USD remains under pressure and at the same time, US defence manufacturing industry will prosper further.

Back to home, PSBS may come under pressure today as Govt is reportedly considering some plan that they will take over some stressed assets like a ARC.

Hints for actionable trading ideas for NF & BNF:

Time & Price action suggests that, Nifty Fut (May) has to sustain over 9425 area for further rally towards 9475-9510 & 9550-9600 in the short term (under bullish case scenario).

On flip side, sustaining below 9405-9385 area, NF may fall towards 9315-9295/65 & 9225-9200/9175 area in the short term (under bear case scenario).

Similarly, BNF has to sustain over 22425 area for further rally towards 22525-22675 & 22800-23000 area in the near term (under bullish case scenario).

On the flip side, sustaining below 22375 area, BNF may fall towards 22250-22150 & 22000-21750 area in the near term (under bear case scenario).

 SGX-NF