Market Mantra: 12/04/2017
(08:30)
SGX-NF: 9140 (-27
points)
Key support for NF: 9215-9175
Key resistance for NF:
9275-9315
Key support for BNF:
21775-21650
Key resistance for
BNF: 21875-21975
As
par early SGX indication, Nifty Fut (Apr) may open around 9140, slightly in red
following tepid global cues after renewed geopolitical concerns regarding US,
NK, Syria, Russia and even China & Japan. US Prez Trump is basically
pressurizing China & Russia to take action against NK & Syria to bring
them on line; otherwise US may take of its own action. Market may be also
concerned that in the event of any real attack on NK by US, the former may also
use some of its Nuke capable missile to Japan as the same is within their
range.
Thus, there is flow of smart money towards safety of Yen, Gold, USTSY
bonds and USD/EQ is being doomed. But, yesterday US EQ market almost recovered
from the day low after renewed hope about the health care bill, now Trump is
apparently being able to unite all the warring RNC & DNC members on the
back of his “surgical strike on Syria”, warning against Russia & indication
of any suitable action against NK; Trump is now in better political position in
comparison to few weeks ago.
Oil
was strong amid chatters of OPEC led production cut extension for another 6
months after June’17 and surprised US inventory
drawdown report yesterday and geopolitical tensions in Syria.
In
the morning, Chinese CPI data came slightly below expectations; but more or
less on the line; China also trading slightly higher after recent slump amid
PBOC tightening and glut of iron ore.
Back
to home, after yesterday’s Govt proposal to set up a NPA panel &
commitments no let up in recapitalization for the PSBS as par real requirement
even after Indradhanush, market may keenly watch the Q4FY17 earnings season,
which will officially start with Infy tomorrow. Yesterday, Rel Defence Q4
result although was a loss at a glance, it may be better than expected at
EBITDA level because there was an exceptional item of “tax write back”.
All
eyes may be on the CPI for March today (estimate 3.98%; prior: 3.65%) and IIP
for Feb (estimate 1.3%; prior: 2.7%).
Hints for actionable
trading idea: Nifty & Bank Nifty Fut
Time & Price
action suggests that, Nifty Fut (Apr) has to sustain over 9315/9330 area for
further rally towards 9375-9425 & 9465-9505 in the short term (under
bullish case scenario).
On the other side,
sustaining below 9295/9275 area, NF may fall towards 9215-9175 & 9115-9040
area 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 21650-21550 & 21450-21340
area in the near term (under bear case scenario).
SGX-NF
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