Nifty May Open Almost Flat Following Mixed Global Cues; Domestic Market May Focus On GST & NPA Resolution; Tepid Trade Deficit Data May Be Also In Focus

Market Mantra: 16/06/2017 (08:30)

SGX-NF: 9605 (+6 points)

For the Day:

Key support for NF: 9580-9530/9505

Key resistance for NF: 9635-9675

Key support for BNF: 23200-23000

Key resistance for BNF: 23500-23650

Hints for actionable trading ideas:

Time & Price action suggests that, NF has to sustain over 9675 area for further rally towards 9715-9770 & 9825-9865 in the short term (under bullish case scenario).

On flip side, sustaining below 9655-9635 area, NF may fall towards 9580-9530/9505 & 9470-9405 area in the short term (under bear case scenario).

Similarly, BNF has to sustain over 23650 area for further rally towards 23750-23875 & 24000-24100 area in the near term (under bullish case scenario).

On the flip side, sustaining below 23600-23500 area, BNF may fall towards 23200-23000 & 22900-22700 area in the near term (under bear case scenario).

As par early SGX indication, Nifty Fut (June) may open around 9605, almost flat tracking mixed global cues. Overnight US market also closed subdued amid another heavy selling in tech shares after some analysts further downgraded the sector citing stretched valuation and pessimistic outlook. Also, a hawkish Fed, taper tantrum may be indicating that era of easy money & lower interest rate may be over and thus all the risk assets (EQ) may be in pressure.

Also, another report that Trump’s son-in-law may be under investigation of Muller (US special counsel) for the suspected Russian link. Thus, ongoing US political jitters may be affecting the US/global market sentiment despite some upbeat/mixed US economic data yesterday and Trump’s optimism about a “super US GDP” for Q2, which will be released on 29^th June (??).

Overall, it seems that Yellen may be well behind the curve, considering the US monetary stance for the last few years; Fed should have shown the present unusual hawkishness 2 years ago, when they were unusually dovish.

Meanwhile, BOJ just now flashed its monetary policy as unchanged in the expected line; all focus may be now on Kuroda’s presser; USDJPY is gaining strength from yesterday following Yellen’s surprised hawkish stance despite soft US economic data.

Back to home, Indian market may focus on GST disruptions and ongoing effort for a NPA resolution, which may be so far, remains elusive. Tepid trade deficit data released yesterday may be also in focus.

SGX-NF