Nifty May Open Upbeat Tracking Positive Global Cues; Indian Market May Focus On Q1FY18 Earnings, Ongoing GST Implementations & P-Notes FNO Fiasco

Market Mantra: 11/07/2017 (08:30)

SGX-NF: 9800 (+26 points)

For the Day:

Key support for NF: 9775/9755-9715

Key resistance for NF: 9835-9875

Key support for BNF: 23800-23900

Key resistance for BNF: 23600-23400

Time & Price action suggests that, NF has to sustain over 9835 area for further rally towards 9875-9915 & 9975-10050 in the short term (under bullish case scenario).

On the flip side, sustaining below 9815-9800 area, NF may fall towards 9755/9715-9665 & 9600-9560 area in the short term (under bear case scenario).

Similarly, BNF has to sustain over 23800 area for further rally towards 23900-24000 & 24115-24250 area in the near term (under bullish case scenario).

On the flip side, sustaining below 23750 area, BNF may fall towards 23600-23400 & 23300-23000 area in the near term (under bear case scenario).

As par early SGX indication, Nifty Fut (July) may open around 9800, almost 26 points up tracking positive global/Asian cues and some surge in Hong Kong market (HSI) following neutral stance of PBOC today (no drainage by RR and injection of equivalent fund through OMO after 12 c consecutive days).

Overnight US market (DJ-30) was absolutely flat (-0.03%) supported by Techs, Banks amid Q2 earnings optimism, which will start from today; market is expecting around 8% growth in SPX-500 earnings on YOY basis this time on an average. Also energy related shares lend some support to the US market yesterday as Oil rebounds above 44.50 mark on buzz about some production cut requests to Libya & Nigeria.

Back to home, Indian market may also focus on Q2 earnings, which will kick start from today with report card from Indusind & South Indian Bank. Also ongoing GST implementation and its effect on the economy and earnings on the corporate India may be in focus in addition of further action from P-Notes FNO holders after SEBI restriction circular; yesterday, we have seen some short covering from them in order to comply with the SEBI instructions. The big question is will they also unwind their long positions amid strict regulations by the SEBI?

 SGX-NF