Friday, 4 August 2017

Nifty May Open Almost Flat Eyeing Subdued Global Cues Amid Renewed US Political Concern & An Impending Trade War With China & Russia; All Eyes May Be On The US NFP Report Today & Indian Market May Continue To Digest The RBI Impact & Earnings



Market Mantra: 04/08/2017 (09:00)

SGX-NF: 10030 (-8)

For the Day: 

Key support for NF: 10010/9970-9945/9920

Key resistance for NF: 10100/10155-10205

Key support for BNF: 24700-24550

Key resistance for BNF: 25150-25275

Hints for positional trading:

Time & Price action suggests that, NF has to sustain over 10100 area for further rally towards 10155-10205* & 10275-10325 in the short term (under bullish case scenario).

On the flip side, sustaining below 10080 area, NF may fall towards 10014/9980*-9945/9925 & 9875-9825 area in the short term (under bear case scenario).

Similarly, BNF has to sustain over 25150 area for further rally towards 25275-25500* & 25695 -25865 area in the near term (under bullish case scenario).

On the flip side, sustaining below 25100-25050 area, BNF may fall towards 24925-24700* & 24550-24350 area in the near term (under bear case scenario).

As par early SGX indication, Nifty Fut (Aug) may open around 10030, almost flat tracking subdued global cues after another US political jitters & concern of an impending trade war involving China & Russia with US. China & also Russia has promised strict countervailing measures to curb equivalent US exports to them, such as Soybean etc.

US market (DJ-30) yesterday closed almost flat, but SPX-500 & NASDAQ closed in slight negative on sales of FANG/tech shares; the overall market sentiment including USD/US bond yields was also adversely affected due to bug miss in headline ISM Non-Mfg PMI report along with the employment portion; although service PMI & factory orders were good.

Market is more interested about US employment & wage growth and thus today’s US NFP data may be vital, specially the average hourly earnings growth, which is poised to come at 0.3%.

But apart from economics, politics may have also impacted the US market sentiment yesterday as the special counsel Muller has issued a grand jury subpoenas in the Trump-Russia election interference issue involving his son’s meetings with the Russian lawyer, who may be an ex-KGB spy (lawyer) in disguise; yesterday US senators has also introduced a legislation, whereby Muller can’t be fired by the President (Trump).

Back to home, Indian market continue to digest impact of RBI policy and GST on the earnings, which is so far may be termed as good/mixed, but not a great surprise justifying a TTM PE of over 25 as of now.

Technically, Nifty-Fut (Aug) needs to stay above 10010-9970 area now; otherwise expect more correction.



 SGX-NF

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