Nifty May Open Almost Flat Following Tepid Global Cues Amid Increasing US Political Chaos (Trump Tantrum) & Softer Economic Data; NF 9580-9600 Area May Be A Big Hurdle As Of Now Ahead Of GST Implementation/Disruption (?) & Mixed Q4 Earnings

Market Mantra: 17/05/2017 (08:30)

SGX-NF: 9510 (-9 points)

For the Day:

Key support for NF: 9495/9460-9425/9395

Key resistance for NF: 9535-9580/9600  

Key support for BNF: 22925-22825

Key resistance for BNF: 23000-23075

TATA STEEL (LTP: 457): Mixed Q4FY17 report card; most of the positives for better than expected EBITDA may be exceptional for Q4; high debt & huge pension liability may be some of the headwinds for its ongoing deleveraging effort; technically, has to sustain over 465-475 area for any further rally; otherwise may come down towards 442-425 area.

PNB (LTP: 174): Mixed Q4 report card; has to sustain over 180-185 area for any further rally; otherwise may come down towards 160-150 area.

As par early SGX indication, Nifty Fut-I may open around 9510, slightly in gap down following tepid global cues amid US political chaos and a spate of softer economic data. US stock Futs are down after report that Trump has instructed his former sacked FBI director to not proceed further into alleged Russian links of one his close aide (former NSA). All these ongoing political drama may be serious or may not be, but one thing is clear that it’s enough to distract the core theme of Trumponomics itself. As a result, USD/US bond yields are drifting lower and USDJPY is trading below the 113-112.50 area for further “risk off” mode.

Back to home, after yesterday’s market celebration on the 3^rd anniversary of “Modinomics”, market may consolidate for some days amid mix Q4FY17 report card so far and probability of a GST disruption in the months ahead, with just 45 days left for its implementation and the whole rules & regulations are still in the draft mode; all the stakeholders now has to work 24/7 for its implementation from 1^st July (??).

Hints for actionable trading ideas for NF & BNF:

Time & Price action suggests that, Nifty Fut (May) has to sustain over 9600 area for further rally towards 9640-9680 & 9770-9865 in the short term (under bullish case scenario).

On flip side, sustaining below 9580-9560 area, NF may fall towards 9495/9460-9425 & 9395-9340 area in the short term (under bear case scenario).

Similarly, BNF has to sustain over 23000 area for further rally towards 23075-23200 & 23325-23450 area in the near term (under bullish case scenario).

On the flip side, sustaining below 22950 area, BNF may fall towards 22825-22720 & 22600-22400 area in the near term (under bear case scenario).

SGX-NF