China intervention in FX market
(USDCNY) may be also affecting the Asian Market sentiment today
Market
Mantra: 04/07/2017 (08:30)
SGX-NF:
9615 (-13 points)
For
the Day:
Key support for NF:
9620-9560/9535
Key resistance for NF:
9670-9725
Key support for BNF:
23300-23000
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 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 9615, down by 13
points tracking subdued global/Asian cues after NK test fired another ballistic
missile early in the morning today and sudden plunge of the US tech shares including
Amazon (?); SPX-500 FUT is now trading around 0.40% down.
Overnight,
US market (DJ-30) closed in positive (+0.61%) with another record high
supported by Banks/Financials & oil related energy shares. Financials were
in demand on Fed’s nod for higher dividend pay outs & buy backs in addition
to optimism about higher interest rates due to high probable QT (higher NIM). Oil
was being supported by sudden fall in US oil rigs count last week and talk of
tensions in the GCC/Qatar issues.
Back
to home, Indian market may focus on RBI’s action of raising bond limit for the
FPIS yesterday, which may be in response to China’s bond market reform (link
with HKG exchange to facilitate more FPIS investments). Also, the domestic
market may continue try to gauge the impact of GST on earnings & economy in
the near term.
SGX-NF
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