Nifty May Open In Green Tracking Positive Global Cues On Hopes Of Trumponomics & China Optimism And Some Fall In EUR & JPY Ahead Of Super Thursday (BOJ & ECB); Pharma May Be In Focus Today Due To Multiple Blockbuster Product Approvals From US FDA

Market Mantra: 19/07/2017 (09:00)

SGX-NF: 9870 (+18 points)

For the Day:

Key support for NF: 9835/9810-9770/9715

Key resistance for NF: 9875/9915-9960/9985

Key support for BNF: 24000-23850

Key resistance for BNF: 24250-24350

Time & Price action suggests that, NF has to sustain over 10005 area for further rally towards 10050-10115 & 10195-10250 in the short term (under bullish case scenario).

On the flip side, sustaining below 9985-9960 area, NF may fall towards 9915/9875-9835/9810 & 9770- 9715/9670 area in the short term (under bear case scenario).

Similarly, BNF has to sustain over 24250 area for further rally towards 24350-24500 & 24700-24875 area in the near term (under bullish case scenario).

On the flip side, sustaining below 24200-24150 area, BNF may fall towards 24000-23850 & 23600-23450 area in the near term (under bear case scenario);

As par early SGX indication, Nifty Fut (July) may open around 9870, almost 18 points up tracking positive global/Asian cues after some fall in EUR & JPY coupled with optimism about China, where PBOC today again injected a net 100 bln Yuan to support the market; also Monday’s sell off in the Chinese small cap shares may have induced investors flocking for Hong Kong shares for safety and regulatory concerns.

There are some reports that China may consolidate (M&A) its PSUS in an effort of ongoing deleveraging and rebalancing.

There is also some reports that despite no hope, Trump/some RNC members may go ahead with the repel of Obamacare and some definitive tax overhauling codes may be released along with the ongoing US budget process. All these may be supporting the early Asian sentiment.

Overnight, US market (DJ-30) was closed in slight red (-0.25%) amid ongoing US healthcare bill squabbling and subdued report card (earnings & guidance) and was dragged by Banks & financials, retails but supported well by FANG (Tech) shares.

Back to home, Indian market may now focus more on Q1 earnings trend, which is mixed so far and may not matching the initial euphoria. Apart from the earnings, the other key global tailwinds (Grey Rhino?) may be ECB/Fed QE tapering (QT) and China credit tightening.

Also, ongoing NPA resolution (IBC) process may be keenly watched as it now seems that the actual resolution, if any, may take time as long as 12 months after initial admission in the NCLT; but more concern may be the lack of private capex as corporates/business are increasingly becoming fearful to take loans from the Indian Banks for their expansion & diversification; subdued credit growth of around 6% may be a great concern as India may be also trying to deleverage like China.

SGX-NF