Nifty May Open In Red Amid Tepid Global Cues Despite Panic JGB Buying By BOJ In A Desperate Attempt To Keep The JGB Yield Lower

Indian Market May Focus On Global Chorus Of QT (Quantitative Tightening), Smooth Roll Out Of GST So Far, Q1 Earnings, NPA & Progress Of Monsoon (So Far Above 5% LPA And May Be Good For Rural Economy)

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

SGX-NF: 9645 (-23 points)

For the Day:

Key support for NF: 9625/9605-9575

Key resistance for NF: 9675/9725-9775

Key support for BNF: 23450-23300

Key resistance for BNF: 23575-23800

Time & Price action suggests that, NF has to sustain over 9725 area for further rally towards 9775-9835 & 9875-9915 in the short term (under bullish case scenario).

On the flip side, sustaining below 9705-9675 area, NF may fall towards 9625-9575 & 9535-9485 & area in the short term (under bear case scenario).

Similarly, BNF has to sustain over 23575 area for further rally towards 23650-23800 & 23900-24050 area in the near term (under bullish case scenario).

On the flip side, sustaining below 23525-23450 area, BNF may fall towards 23300-23100 & 23000-22800 area in the near term (under bear case scenario).

As par early SGX indication, Nifty Fut (July) may open around 9645, almost 23 points down following tepid global cues even after panic buying of JGB bonds by BOJ at 0.11% yield in a desperate attempt to keep the JGB yield around 0.00% in its effort under YCC (yield curve control, a relatively new method by BOJ for its QQE) after ECB minutes yesterday shows about hints of QE tapering, which resulted in a global bond rout and slump of global stock market.

Overnight US market (DJ-30) also closed lower (-0.74%) tracking global chorus of QT and subdued US economic data (ADP/ISM-Non MFG) and plunge in tech shares.

Indian market may be also under some stress as EM may be vulnerable to global bandwagon of QT in the days ahead.