Tuesday, 4 July 2017

Nifty May Start Almost Flat Amid Subdued Global Cues Led By Fall In US Techs & Another NK Missile Launch; Indian Market May Continue To Digest The Impact Of GST On Earnings & Economy



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

No comments:

Post a Comment