Wednesday, 24 May 2017

Nifty May Open In Green Following Positive US Market & China Downgrade (Mixed Global Cues);Domestic Market May Stay Cautious Amid Lingering Ind-Pak Geo-Political Tensions & GST Disruptions



Tata Motors & Voltas may rally today after better than expected Q4FY17 report card

Market Mantra: 24/05/2017 (08:30)

SGX-NF: 9410 (+22 points)

For the Day:

Key support for NF: 9395-9360/9330 & 9280/9240


Key resistance for NF: 9455/9475-9515/9535


Key support for BNF: 22450-22300


Key resistance for BNF: 22675-22775

As par early SGX Indication, Nifty Fut-I may open around 9410, gap up by 22 points following mixed global cues. Overnight US market closed in slight positive (+0.22%) supported by optimism over Trump’s overseas tours & various business deals and strength in oil ahead of OPEC meeting. Although, US economic data was subdued yesterday, USD got some strength ahead of FOMC minutes later today and June rate hike expectations.
In the morning, Moody’s downgrade China’s sovereign debt rating to A1 from Aa3; Outlook revised to Stable from Negative, which has put some pressure on the CNY & Chinese/Asia-Pacific market; metals may be under pressure today.

Back To home, as we all know, after yesterday’s official announcement of the mini surgical strike on PAK LOC by Indian army, domestic market & INR dragged to some extent. Although, this new surgical attack may be very small & limited, market may be cautious for high probabilities of such frequent surgical strike in the future also as strategy of the Indian Govt under strong political leadership of NAMO may have changed to “attack is the best defence” rather than defending itself for decades.

Hints for actionable trading ideas for NF & BNF:

Time & Price action suggests that, Nifty Fut (May) has to sustain over 9475 area for further rally towards 9515/9535-9575/9600 & 9680-9770 in the short term (under bullish case scenario).

On flip side, sustaining below 9450-9395 area, NF may fall towards 9360/9330-9280 & 9240-9205 area in the short term (under bear case scenario).

Similarly, BNF has to sustain over 22675 area for further rally towards 22450-22300 & 22050-21800 area in the near term (under bullish case scenario).

On the flip side, sustaining below 22625 area, BNF may fall towards 22650-22590 & 22450-22300 area in the near term (under bear case scenario).



 SGX-NF

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