Market Mantra: 18/05/2017
(08:30)
SGX-NF: 9475 (-60
points)
For the Day:
Key support for NF:
9445/9420-9395/9355
Key resistance for NF:
9515/9535-9580/9600
Key support for BNF:
22825-22720
Key resistance for
BNF: 23000-23075
As par early SGX indication, Nifty Fut-I may open around 9475,
almost 60 points down following “Trump Tremor aftershock”; as a fall out of
intervention with FBI (Comey’s) investigation over the alleged Russian link
with his close aide (former NSA chief), it’s being seen as “obstruction of
justice” and an “impeachable offence” by Trump. Thus, opposition DNC members are
calling for Trump’s impeachment and it seems that even his own RNC members are
distancing from Trump directly or indirectly for all such controversies.
Yesterday, US speaker has indicated that although US congress is supporting Trump
in this hour of crisis, it also want an impartial investigation of the whole
matter and US congress may push its own bill for tax reform, health care, infra
spending etc.
Looking forward, ex-FBI chief Comey’s testimony in the US
congress & further development of the impeachment motion by the DNC next
week will shape the US/Global market; for now politics is playing bigger role
than economics and all these US political chaos are making USD/US bond yields
lower in a flight to safety to US TSY bonds, Yen, Gold etc. The whole idea of “Trumponomics”
may be in serious doubt now.
In the morning, Japanese GDP data flashed upbeat/better than
expected (2.7% YOY; 0.5% QOQ); but a better JP economic data is good for JPY
and it may also help BOJ to taper its huge QQE gradually. Thus, a strong JPY is
making further pressure on the JP market (Nikkei-225).
Back to home, after opening in deep red, Indian market may take
some support from the 9445-9420 zone; otherwise expect more panic today. Apart
from deluge of earnings today, domestic market may also focus on the GST meet
today & tomorrow for a confirmation about implementation date & various
other rules & regulations. A July or even a Sep’17 roll out may be proved
as disruptive for the economy in the short term, considering the under
preparedness of the stake holders and concerns for input tax credit transmissions.
Hints for actionable
trading ideas for NF & BNF:
Time & Price
action suggests that, Nifty Fut (May) has to sustain over 9515-9535 area for
further rally towards 9580/9600 & 9640-9680 in the short term (under
bullish case scenario).
On flip side,
sustaining below 9500 area, NF may fall towards 9445-9420 & 9395-9355 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 & 22625-22450
area in the near term (under bear case scenario).
SGX-NF
No comments:
Post a Comment