Nifty May Open Almost Unchanged Tracking Mixed Global Cues; SEBI Tightening On “Shell Cos” May Affect The Broader Market Sentiment Today

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

SGX-NF: 10095 (+9)

For the Day: 

Key support for NF: 10065-10010/9965

Key resistance for NF: 10155-10185/10205

Key support for BNF: 24900-24700

Key resistance for BNF: 25150-25275

Hints for positional trading: Strategy-SELL ON RISE

Time & Price action suggests that, NF has to sustain over 10205 area for further rally towards 10275-10325 & 10380-10455 in the short term (under bullish case scenario).

On the flip side, sustaining below 10185-10155 area, NF may fall towards 10065-10010 & 9965-9915 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 24900-24700 & 24600-24450 area in the near term (under bear case scenario).

As par early SGX indication, Nifty Fut (Aug) may open around 10095, almost flat tracking mixed global cues after USD softened more amid subdued China export/import (trade balance) data. There is also some buzz that China may widen its USDCNY trading (fixing) band in its ongoing effort of currency reform ahead of Trump’s visit in Oct-Nov.

Overnight US market (DJ-30) closed almost flat, but at another record high around 22118 (+0.12%) supported by techs/semi conductor stocks & consumer staples and some M&A buzz; but energy related shares dragged the market to some extent in a relatively light day of trading amid ongoing summer vacation.

Overall, US market may be quite complacent due to upbeat earnings (thanks to a lower USD), dovish Fed (lower interest rate) and an environment of low inflation despite lingering US political jitters & poor visibility of Trumponomics.

Technically, SPX-500 (Fut) which is now trading around 2475 (-0.11%) need to stay over 2495-2505 area for further rally from here; otherwise 2445-2400 zone may come in the days ahead.

Back to home, Indian market may be in some stress today after SEBI decision to bar nearly 331 suspected “shell companies” from regular trading and further strict action, if allegation proves right. Apart from various small companies, there are also so called “multi baggers” in that list, which may be very shocking to the investors/traders and may also destabilize the overall market mechanism and it may be a serious question of credibility.

 SGX-NF