Monday, 8 May 2017

Nifty May Open In Slight Green Following Mixed Global Cues Despite An Emphatic Win By Macron In French Election (Another Example Of Buy The Rumour & Sell The Fact?); For ACC & Ambuja Merger News One May Watch 1645 & 255 For Further Break Out To 1750-1775 & 271-281 Zone



Market Mantra: 04/05/2017 (08:30)

SGX-NF: 9335 (+19 points)

For the Day:

Key support for NF: 9295-9255

Key resistance for NF: 9400-9475            

Key support for BNF: 22525-22425

Key resistance for BNF: 22800-22950

As par early SGX indication, Nifty Fut-I may open around 9335, slightly in green following a better than expected win for the centrist candidate (Macron) in the French election and a local election win for Merkel’s party in Germany. But, Macron now need to have majority in the France parliament by June and along with that some unconfirmed news of corruption investigation (?) against Macron may be putting some pressure on the “risk on” rally at the moment after some initial early euphoria. Also, the factor of Macron win may have been already discounted by the market after his 1st round win and subsequent series of opinion polls; so no great surprise here; but better margin of win is somehow positive.

Back to home, Indian market may also focus on the ongoing NPA reforms/ordinance fine prints; but so far at a glance it may not pose any significance difference in the near term, considering it as an advisory model with multilayer policy committees. It may also aggravate bank’s permanent write offs (complete waive offs).

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 9335-9295 & 9255-9170 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 & 22425-22200 area in the near term (under bear case scenario).



 SGX-NF


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