Market Mantra: 13/04/2017
(08:30)
SGX-NF: 9195 (-31
points)
Key support for NF:
9170/9150-9115/9085
Key resistance for NF:
9215-9255 & 9280-9315
Key support for BNF:
21675-21450
Key resistance for
BNF: 21775-21875
As
par early SGX indication, Nifty Fut (Apr) may open around 9195, slightly gap down
following tepid/mixed global cues amid lingering geopolitical tensions and
Trump’s jawboning about a weaker USD. Yesterday Trump commented that USD is
very strong and he will like to see it weaker wrt other major currencies and
also commented that he likes to lower Fed rate in a complete about turn of his previous
election rhetoric. He also indicated to fill up the current vacant positions in
FOMC with some dovish members and Yellen, being an original dove, she may also
get an extension next year. Trump also indicated that China will not be leveled
officially as “currency manipulator” by US, because China will help to diffuse
tension with NK for a favourable trade deal with US.
Thus,
all these efforts to talk down the USD tactics by Trump, specially his comments
about US Fed rate & dovish FOMC members has put significant pressure on USD
& risk trade is off (USD now becomes a risk or reflation currency after
Trumpism contrary to earlier perceptions of a safe haven currency).
Subsequently, USDJPY has broken the important level of 109 and now eyeing the
next 107 level; Japanese market (Nikkei) is down.
China’s
Yuan has gained following Trump’s unwillingness to label it as “currency manipulator”,
PBOC’s liquidity injection after nearly two weeks and an upbeat trade balance
data (both export & import data flashed much above estimate). China’s
market is trading in positive zone. Contrary to China, US/Trump & Co may now be levelled as a great manupulator of its currency (USD).
Back
to home, all eyes will be on Infy’s report card today, which is just flashed
and at a glance, Q4 results may be at par street estimates. Market may look now
for its guidance.
Hints for actionable
trading idea: Nifty & Bank Nifty Fut
Time & Price
action suggests that, Nifty Fut (Apr) has to sustain over 9170 area for further
rally towards 9215-9255 & 9280-9315 for the day/in the short term (under
bullish case scenario).
On the other side,
sustaining below 9150 area, NF may fall towards 9115-9085 & 9040-8985 area
for the day/ 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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