Monday 3 July 2017

Nifty May Open Almost Flat Amid Mixed Global Cues; Indian Market May Continue To Be Under GST Confusion & Stress; All Eyes May Be Also On The Mfg PMI Today



Market Mantra: 03/07/2017 (08:30)

SGX-NF: 9510 (-5 points)

For the Day:

Key support for NF: 9495/9440-9395/9335

Key resistance for NF: 9540/9600-9670/9725

Key support for BNF: 23000-22800

Key resistance for BNF: 23350-23550


Time & Price action suggests that, NF has to sustain over 9615 area for further rally towards 9670-9725 & 9775-9865 in the short term (under bullish case scenario).

On the flip side, sustaining below 9600-9560 area, NF may fall towards 9495/9440-9395/9335 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 23100/23000-22800 & 22450-22300 area in the near term (under bear case scenario).

As par early SGX indication, Nifty Fut (July) may open around 9510, almost flat following mixed global cues. Overnight, on Friday US market (DJ-30) closed in positive (+0.29%) amid mixed US economic data, QTR re-balancing of portfolio, concern of QT and supported by banks.

In the morning Asian session, upbeat China & Japan Mfg PMI data is also supporting the risk-on sentiment.

Back to home, as Indian market may gauze the impact of GST implementation on the economy for both short & long term, one point may be that most of the SMES & informal sector may be under severe stress due to higher compliance costs of GST under the present complex format & their business model may have to transform; otherwise they may eventually shut down. This may have ripple effect on India’s growth & consumption story in years ahead, unless present GST model is modified to look into their concern. SME focus Banks may be also under further NPA stress in the days ahead.



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