Nifty May Open Almost Flat Following Mixed Global Cues Amid Renewed Threat Of Another Nuke Test By NK, Fire Of FBI Director By Trump & Upbeat Inflation Data In China And IMD’s Prediction Of Above Normal Monsoon This Year

Bharti Airtel: Watch 335-325 & 365-385 Zone After Mixed Q4FY17 Report Card (Better Than Expected PAT/EBITDA/EBITDA Margin; But Lower ARPU)

Market Mantra: 10/05/2017 (08:30)

SGX-NF: 9360 (+9 points)

For the Day:

Key support for NF: 9320/9305-9295/9265

Key resistance for NF: 9385/9400-9425/9475            

Key support for BNF: 22625-22590/500

Key resistance for BNF: 22875-22950

As par early SGX indication, Nifty Fut-I may open around 9360, almost flat following mixed global cues. Overnight US market closed in slight negative (-0.17%), but off the highs after NK announced that they are determined for the 6^th Nuke test. Although US is trying to persuade the country, it’s enough for the sudden “risk off” mood and USDJPY nosedived from the vital resistance zone of 114.50 ( next hurdle is 115.50 area). Also, sudden termination of FBI director by Trump for the Clinton e-mail fiasco and most probably also for the ongoing investigation of Russian link with Trump/election period may cause the global market sentiment under some pressure as such administrative/political squabbling in the WH may also have an adverse effect on the pro-growth (Trumponomics) agenda of US Govt.

In the morning, BOJ Kuroda also sounded somewhat hawkish in its comments about overall Japanese economy and subsequently USDJPY slumped despite continuous hawkish scrips by various Fed members and upbeat Jolt jobs data yesterday (FFR is now indicating almost 100% probability of a June rate hike !!).

But, upbeat Chinese CPI & PPI data may be helping the China/HIS & Asian market sentiment to some extent; although lower CPI & PPI data may be positive for China, it may be negative for the DM/global reflation trade as China is supposed to spread its inflation to the growth/inflation hungry US/EU zone.

Back to home, apart from mixed Q4 earnings, Indian market may also take some support from IMD’s comments yesterday that monsoon may be above normal this year as threat of El-Nino is receding quite significantly (?). As par some market buzz, GST may be delayed to Sep’17 or beyond that because of under preparedness, which may be sentimentally negative for the market, if true.

Hints for actionable trading ideas for NF & BNF:

Time & Price action suggests that, Nifty Fut (May) has to sustain over 9425 area for further rally towards 9475-9510 & 9550-9600 in the short term (under bullish case scenario).

On flip side, sustaining below 9405-9385 area, NF may fall towards 9320/9305-9295/9265 & 9215-9170 area in the short term (under bear case scenario).

Similarly, BNF has to sustain over 22875 area for further rally towards 22950-23075 & 23200-23475 area in the near term (under bullish case scenario).

On the flip side, sustaining below 22825 area, BNF may fall towards 22625/590-22500 & 22400-22225 area in the near term (under bear case scenario).

 SGX-NF