Nifty May Open In Upbeat Mood Following Positive Global Cues Boosted By Draghi’s Flip-Flops And US Banks & Techs; Indian Market May Get Some Support From 7-CPC Arrears, But GST & NPA Concern May Still Drag

Market Mantra: 28/06/2017 (08:30)

SGX-NF: 9525 (+23 points)

For the Day:

Key support for NF: 9470/9440-9400/9340

Key resistance for NF: 9530/9560-9615/9675

Key support for BNF: 23000-22700/22450

Key resistance for BNF: 23350-23550

Time & Price action suggests that, NF/NS has to sustain over 9615 area for further rally towards 9675-9700/9735 in the short term (under bullish case scenario).

On the flip side, sustaining below 9600-9560 area, NF/NS may fall towards 9470/9440-9400/9340 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 23000-22700 & 22450-22300 area in the near term (under bear case scenario).

As par early SGX indication, Nifty Fut (June) may open around 9525 (?), almost 23 points up following positive global cues. Overnight US market (DJ-30) also closed in upbeat mood (+0.68%) after ECB clarified that Draghi’s comments day before yesterday was misinterpreted by the market as a signal of QT (QE bond tapering).

Also, US market sentiment was boosted by Banks after “good results” from 2^nd stage of Fed stress test and Fed permitted them for normal dividends and buy backs. Tech/FAANG shares also supported the market well in addition of Oil (energy related shares) after surprised gasoline draw down & reduced US oil supply report, although that may be seasonal in nature.

Back to home, Indian market may open in positive tone but ongoing concern of GST & NPA blues may also drag the market later on despite some optimism about 7-CPC arrears (HRA) sanctioned by the Govt.

 NF