Nifty May Open In Slight Green Following Subdued Global Cues Amid Escalation Of NK Geo-Political Tensions; Legal Challenge Of IBC/NPA Validity By Various Large Defaulters At HC May Also Dampen The Indian Market Sentiment

Market Mantra: 05/07/2017 (08:30)

SGX-NF: 9635 (+15 points)

For the Day:

Key support for NF: 9580/9560-9535/9480

Key resistance for NF: 9670-9725

Key support for BNF: 23100-23000

Key resistance for BNF: 23450-23650

Time & Price action suggests that, NF has to sustain over 9670 area for further rally towards 9725-9775 & 9835-9875 in the short term (under bullish case scenario).

On the flip side, sustaining below 9650-9620 area, NF may fall towards 9560/9535 & 9495-9440 & area in the short term (under bear case scenario).

Similarly, BNF has to sustain over 23450 area for further rally towards 23550-23650 & 23800-23900 area in the near term (under bullish case scenario).

On the flip side, sustaining below 23400-23350 area, BNF may fall towards 23240-23100 & 23000-22800 area in the near term (under bear case scenario).

As par early SGX indication, Nifty Fut (July) may open around 9635, almost 15 points up tracking subdued Global/Asian cues after US-SK drill of barrage of missiles following NK’s ICBM gift to the US yesterday on its independence day. As a result, USDJPY is down for safe heaven demands for Japanese Yen & Gold. Also, upbeat Service & Composite PMI data in Japan today may have made the USDJPY weak and we have some early risk-off sentiment around the Asian session.

But, off late, USDJPY is recovering to some extent and that has caused some short covering of risk assets; inline China service & composite PMI may be also helping.

Back to home, Indian market continue try to gauge the impact of GST on growth & earnings; but market may also focus on the NPA/IBC resolution issues as the legal challenge by various large stressed accounts under the so called “dirty dozen” may also delay the overall resolution process as IBC act will be tested at SC eventually.

SGX-NF