Nifty May Open Around 44 Points Down At 9220 Amid Heightened Geo-Political Tensions After US Strikes Syria; Watch 9195-9160 As Vital Support In NF For The Day; Russian Reaction May Be Important Now

Market Mantra: 07/04/2017 (08:30)

SGX-NF: 9220 (-44 points)

Key support for NF: 9195/9160-9115

Key resistance for NF: 9250-9305

Key support for BNF: 21450-21200

Key resistance for BNF: 21675-21775

As par early SGX indication, Nifty Fut (Apr) may open around 9220, gap down following sudden missile strikes on some Syrian airbase by USA early this morning. Although, probability of such attack was increasing and there was enough indication of some US strike on Syria after alleged use of chemical weapons by the later few days ago, market may be apprehending such attack on the weekend after Chinese Prez XI leaves US.

Now reaction from Russia (Putin) may be important as some Russian soldiers in that airbase may also be under missile attacks despite US warned them before the launch of the attack and most of the 50-60 missiles launched were basically targeted at the specific Syrian airbase and not at the part of Russian base there (as par USA).

Apart from Syria, now North Korea may also be on the hit list of USA, although NK being a serious nuclear power, US may not attack it abruptly. But there will be some concern and all such geo-political tensions are driving smart money towards safety of Yen, USTSY and USDJPY, Precious Metals (Gold) & risk trade is being doomed now. Crude also soared. If NK launches again some of its missiles in its ongoing “missile game”, then such geo-political tensions may intensifies more serious.

For India, such missile attacks on Syria by USA may also invite more domestic pressure for such similar action on the POK LOC in future, which is engaged in a regular confrontation for decades causing almost regular deaths of our precious soldiers.

Apart from geo-politics, Indian market may also focus on yesterday’s RBI statement & action on liquidity & NPA management and also on the implementation of GST & forthcoming Q4FY17 earnings season. Going ahead, GST rate settings may be vital for a July’17 planned launch.

Hints for actionable trading idea:

Time & Price action suggests that, Nifty Fut (Apr) has to sustain over 9195-9215 area for further rally towards 9250-9305 & 9375-9425 area by today / in the short term (under bullish case scenario).

On the other side, sustaining below 9160 area, NF may fall towards 9115-9090 & 9040-8995 area by today / in the short term (under bear case scenario).

Similarly, BNF has to sustain over 21500 area for further rally towards 21675-21775 area by today / in the near term (under bullish case scenario).

On the other side, sustaining below 21450 area, BNF may fall towards 21300-21100 zone by today / in the near term (under bear case scenario).

 SGX-NF