Nifty May Open In Green Following Positive Global Cues; All Eyes May Be On RIL After In Line Q4 Numbers & Overhang Of R-Jio; Watch 1455-1475 Zone As Big Technical Hurdle For The Stock; Keep An Eye On NK On Its “Army Day” For Any “Missile Game”

Market Mantra: 25/04/2017 (08:30)

SGX-NF: 9255 (+30 points)

For the Day:

Key support for NF: 9235-9180

Key resistance for NF: 9275-9310

Key support for BNF: 21800-21700

Key resistance for BNF: 21975-22150

As par early SGX indication, Nifty Fut (Apr) may open around 9255, gap up by around 30 points following positive global cues after “French Relief Rally” and Trump’s pledge for a phenomenal tax reform plan outline (vision) tomorrow as a mark of 100 days in WH. For the time being, as a compromise to pass the temporary spending bill to avert a US Govt shut down, Trump may abandon his plan to build a Mexican border wall. Market is keeping great hope for Trump’s Tax plan tomorrow; but in all probability, it may be nothing new that we don’t know already. Going forward, actual tax reform bill & its implementation may be more meaningful for the market. Also, Obamacare subsidies & proposed Trumpcare may be an issue, which may keep the global market on toes for the weekend Govt shut down drama.

Apart from US politics & Trump’s Tax plan, market may also watch BOJ/ECB meet very closely for any indication about tapering of QQE or not. Also, US GDP on Friday may be on the watch list, which is expected to be around 1.7-1.9% for Q1CY17, lowest for several quarters. Fed may be on hold for June as well as Sep’17 for the time being.

Back to home, apart from positive global cues, Indian market may take some sues from FM & RBI Gov’s upbeat comments about trajectory of economy (positive on growth); but Patel was also hawkish on inflation and emphasized on PSBS recapitalization issues & pains of India’s twin balance sheets.

Among hosts of report cards today, Wipro & LIC HSGFIN may be important for the market.

Hints for actionable trading ideas for NF & BNF:

Time & Price action suggests that, Nifty Fut (Apr) has to sustain over 9275 area for further rally towards 9310/40-9375 & 9425-9505 in the short term (under bullish case scenario).

On flip side, sustaining below 9255-35 area, NF may fall towards 9180-9115 & 9060-8995 area in the short term (under bear case scenario).

Similarly, BNF has to sustain over 21875 area for further rally towards 21975-22050 & 22150-22305 area in the near term (under bullish case scenario).

On the flip side, sustaining below 21825 area, BNF may fall towards 21700-21600 & 21450-21300 area in the near term (under bear case scenario).

NF