Nifty May Open Almost Flat Amid Mixed Global Cues; Will It Make 9600 Milestone On The Eve Of 3rd Anniversary Of Modinomics?

Market Mantra: 26/05/2017 (08:30)

SGX-NF: 9480 (-12 points)

For the Day:

Key support for NF: 9495/9460-9430

Key resistance for NF: 9550-9600

Key support for BNF: 23200-23075

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Key resistance for BNF: 23300-23500

As par early SGX indication, Nifty Fut-June may open around 9480, slight in red following mixed global cues. Overnight US market closed in positive (+0.34%) in another record high buoyed by upbeat earnings by some retail giants and optimism about tech & consumer discretionary sector. Oil was in roller coaster drive and fall below 50 mark as OPEC-NOPEC production cut agreement of 9 months is already discounted by the market, going by the recent rally (another typical example of buy on rumour & sell on news/fact).

But, USD/US bond yields were subdued as market is slowly realizing that Fed may not hike in June amid soft US economic data & political turbulence; instead Fed is now talking about gradual tapering of its B/S (QE bonds), which may be more than an effect of a rate hike.

In the early morning Asian session, USD (risk trade) came under renewed pressure after news that, Trump’s son-in-law is under FBI scanner for the alleged Russian involvement issue in the US election.

Back to home, although today is the 3^rd anniversary (official) of Modinomics, Nifty has already rallied quite a lot yesterday itself on the back of better June monsoon prediction by the Skymet, today it has to sustain over 9550 level for 9600-9680 mile stone. As par various experts, a complex GST, tepid private investments, huge banking NPA, unemployment may be some of the question marks in this 3^rd year of anniversary despite some green shoots in the economy and stable democracy (political situation).

Hints for actionable trading ideas for NF & BNF:

Time & Price action suggests that, Nifty Fut (May) has to sustain over 9550 area for further rally towards 9600-9680 & 9770-9865 in the short term (under bullish case scenario).

On flip side, sustaining below 9530-9495 area, NF may fall towards 9430-9330 & 9280-9240 area in the short term (under bear case scenario).

Similarly, BNF has to sustain over 23300 area for further rally towards 23500-23650 & 23875-24000 area in the near term (under bullish case scenario).

On the flip side, sustaining below 23250-23200 area, BNF may fall towards 23075-23000 & 22900-22700 area in the near term (under bear case scenario).

SGX-NF