Friday, 5 May 2017

Nifty May Open In Red Following Muted Global Cues Amid Slump In Oil/Metals & China (War On Debts); All Eyes Will Be Now On Govt’s Official Announcement Of NPA Resolution Policy



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

SGX-NF: 9350 (-31 points)

For the Day:

Key support for NF: 9320-9280

Key resistance for NF: 9400-9475            

Key support for BNF: 22675-22525

Key resistance for BNF: 22800-22950


As par early SGX indication, Nifty-FUT-I may open around 9350, gap down following muted global cues as a result of slump in oil & commodities/metals due to concern of supply glut & tepid demand, especially from China. As a result, US market closed almost flat & off the lows after passage of Trumpcare in the congress with a thin margin of only 4 votes. But as par reports, US senate may eventually scrap this version of Trumpcare and redraft of its own; so nothing of over optimistic here.

China market is also under pressure today due to slump in metals/iron ore, tepid PMI data and increasing regulatory & PBOC tightening on securities market & debt. The war on debt by China may result some capitulation there, being a debt fuelled economy.

Back to home, all eyes today may be on the Govt’s official announcement of the fine details of the banking regulation amendment & NPA policy. As most of the points are already known to the market, if there is no surprise, it may be a sell on facts today for Bank Nifty (as the news may have been already discounted to a large extent).

Hints for actionable trading idea 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 9320-9280 & 9245-9175 area in the short term (under bear case scenario).

Similarly, BNF has to sustain over 22850 area for further rally towards 22950-23075 & 23200-23475 area in the near term (under bullish case scenario).

On the flip side, sustaining below 22800-750 area, BNF may fall towards 22675-22525 & 22400-22200 area in the near term (under bear case scenario).



 SGX-NF

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