Market Mantra: 24/08/2017 (09:00)
SGX-NF: 9870 (+11)
For the Day:
Key support for NF: 9845-9805/9785
Key resistance for NF: 9905-9940/9980
Key support for BNF: 24275-24150
Key resistance for BNF: 24375-24575
Hints for positional trading:
Time & Price action suggests that, NF has to sustain over
9905 area for further rally towards 9940-9980 & 10030-10075 area in the
short term (under bullish case scenario).
On the flip side, sustaining below 9885 area, NF may fall
towards 9845-9825/9785 & 9750-9705 area in the short term (under bear case
scenario).
Similarly, BNF has to sustain over 24375 area for further rally
towards 24575-24675 & 24775-25075 area in the near term (under bullish case
scenario).
On the flip side, sustaining below 24325 area, BNF may fall
towards 24275-24150 & 23900-23750 area in the near term (under bear case
scenario).
Technically, Infy has a good positional support of 850-815 area;
short term TGT: 1040
As par early SGX indication, Nifty Fut
(Aug) may open around 9870, marginally higher tracking mixed global cues amid
concern of US shut down (debt ceiling) & renewed optimism about Trump’s tax
reform plan.
Overnight
US market also closed in negative due to Trump’s earlier political
rhetoric about shut down of US Govt, if his Mexican wall narrative (funding) is
not passed by the US congress; DJ-30 closed around 21812, down by 0.40%, while
S&P-500 closed around 2444, edged down by 0.34% and NASDAQ dropped by 0.30%
to around 6278.
Both USD & US market came into
renewed pressure yesterday (NY session) after Fitch issued an warning about US
sovereign rating for this debt ceiling/US Govt shut down political narrative.
US house speaker Ryan also supported the Mexican border wall rhetoric but no
Govt shut down.
But in the early morning Asian session
today, another report popped up that Trump has a fruitful discussions with the
house RNC GOP leader McConnell on middle class tax relief, defence spending,
border wall & other issues and that was instrumental for some rebound in
USD and risk trade ahead of Yellen at Jackson Hole tomorrow.
Market may be optimistic about Trump’s
legislative agenda as if, a Prez Trump may be different from Political Trump;
his public comments in political rally may be quite different from his actual
actions at WH; Trump is committed to sign anything put in front of him by the
US congress!!
Back to home, Indian market may focus
on true impact of PSBS merger & banking products cross sell by NBFC, which
was announced by the Govt/RBI yesterday and instrumental in the closing hour’s
sharp rally. Beside this NPA resolution & RBI Dy Gov’s comments yesterday
calling for giving a 3 month window to the banks to clean it up (?) and some
past policy paralysis by the central bank may be also in focus.
In addition, Govt’s war on black money,
stretched valuation & muted Q1FY18 Nifty earnings, which saw a de-growth of
8.4% on YOY basis (?) may be another headwind apart from Govt’s war on black
money (Shell cos) and ongoing China border tensions; China has reportedly
issued an advisory warning for its citizens to visit India. China may be trying
its best to do something about the “prestigious” Doklam border issue ahead of
its party congress in Sep-Oct’17.
Infy saga is another headwind for the
Indian market now as the corporate governance issue for this iconic co may be
also a symbolic issue for the corporate India; market may be concerned that,
although Nilekani joining as CEO with a restructured board may restore the
confidence of all the concerned stake holders, fundamentals of the co will not
change overnight.
But, for the time being, restoration of
confidence in this iconic Indian IT outsourcing so may be the primary objective
to out the warring house in order and to talk on one tone; rest will follow
naturally. In that sense, 850-815 area for Infy may be a good support zone for
accumulation, everything else being equal.
As EUR may get some strength on EZ growth
optimism ahead of Draghi’s speech at Jackson Hole tomorrow, EU market may be in
stress later in the day today, which may also keep the Indian market in
pressure today ahead of holiday tomorrow.
SGX-NF
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