Nifty May Open In Red Tracking Negative Global Cues On Concern Of QT & Slide In Techs; Indian Market May Be Also Under Stress Until Market Get Some Confidence On GST

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

SGX-NF: 9480 (-45 points)

For the Day:

Key support for NF: 9460/9435-9395/9335

Key resistance for NF: 9530/9565-9615/9660

Key support for BNF: 23100/23000-22700/22450

Key resistance for BNF: 23350-23550

Time & Price action suggests that, NF has to sustain over 9615 area for further rally towards 9660-9700/9735 in the short term (under bullish case scenario).

On the flip side, sustaining below 9600-9560/9530 area, NF may fall towards 9460/9435-9395/9335 area in the short term (under bear case scenario).

Similarly, BNF has to sustain over 23350 area for further rally towards 23550-23750 & 23850-24000 area in the near term (under bullish case scenario).

On the flip side, sustaining below 23300 area, BNF may fall towards 23100/23000-22700 & 22450-22300 area in the near term (under bear case scenario).

As par early SGX indication, Nifty Fut (July) may open around 9480, almost 45 points gap down following negative global cues. Overnight US market (DJ-30) also closed in deep red (-0.78%) on concern of central bankers tightening (QT) and subsequent surge in global bond yields; tech (FAANG) shares were also in huge pressure as era of easy money may end soon. Although, Q1 US GDP headline came upbeat on 3^rd revision, fine prints of the same may not be so much rosy.

Back to home, Indian market may continue to be under stress on earnings concern for Q1-Q2FY18 due to GST disruptions and NPA blues despite great thrust on deleveraging for stressed corporate India. Almost all the major sectors from steel, power to telecom are in stress; but telecom sector may get some boost today as Govt may help/bail out them by lowering interest rate & extending debt tenure.

SGX-NF