Market Mantra: 18/08/2017 (09:00)
SGX-NF: 9860 (-54)
For the Day:
Key support for NF: 9815/9795-9765/9705
Key resistance for NF: 9885/9905-9950/9980
Key support for BNF: 24250-24150
Key resistance for BNF: 24425-24525
Hints for positional trading:
Time & Price action suggests that, NF has to sustain over 9905
area for further rally towards 9950/9980-10005/10035 & 10095-10115 area in
the short term (under bullish case scenario).
On the flip side, sustaining below 9885-9865 area, NF may fall
towards 9815/9795 & 9765-9705 area in the short term (under bear case
scenario).
Similarly, BNF has to sustain over 24525 area for further rally
towards 24600-24725 & 24900-25025 area in the near term (under bullish case
scenario).
On the flip side, sustaining below 24475-24425 area, BNF may
fall towards 24250-24150 & 23950-23850 area in the near term (under bear
case scenario).
As par early SGX indication, Nifty Fut
(Aug) may open around 9860, down by almost 54 points tracking subdued global
cues after the tragic terrorist incident at a popular tourist place in Spain/Barcelona
coupled with ongoing US political/policy paralysis and resignation squabbling
(rumour) of Cohn, a key architect of Trump’s tax reform policy & his chief
economic adviser and also the potential replacement of Yellen.
Although, Cohn has not resigned till
now, he may be under immense pressure from intellect & corporate US to
distance himself from Trump amid his controversial stance on the VA white
nationalistic fiasco. Overall, US political & policy paralysis coupled with
poor visibility of Trumponomics may be huge negative for the USD & risk
assets including equity.
As corporate America is deserting Trump
one by one, market may be unnerved as despite so much Trump tantrum, his corporate
circle may be one of the elements of confidence boosting among the investors,
as they still believed Trump’s ability to deliver his Trumponomics narratives.
But, now the whole rhetoric of Trumponomics may be extremely doubtful not only
for the ongoing daily US political entertainment, but may be also for limited
fiscal maneuver room in the US budget itself.
Even, Trump’s own RNC GOP members now
seems to be distancing themselves from the controversial hardcore
nationalistic/racist image and all these may be also an indication that days of
Trump as US Prez may be over; he may either resign or impeached shortly.
Although, yesterday’s overall US
economic data may be mixed, the ongoing US political drama coupled with Cohn’s
resignation buzz and above all, the tragic terrorist incident at Spain has made
the USD & risk assets (US/global equity) lower. As a result, overnight US
market (DJ-30) closed in deep red around 21751 (-1.24%) and SPX-500 now also
trading almost flat around 2430 (+0.14%) on geo-political risk aversion.
Looking ahead, SPX-500 now need to
sustain over 2420-2415 zone; otherwise 2395-2370 zone may be clearly visible.
Back to home, after opening in deep
red, Indian market is now in further stress following surprised (?) resignation
of Infy CEO Vishal Sikka amid an environment of trust deficit & repeated interference
in the functioning of the Co by its founders. Although, Sikka has been
reappointed as an executive VC, the role may be not clear for the
market/investors.
Sikka was instrumental in reviving the
performance of Infy, since he took over in 2014 and market has a great trust in
his ability; thus his sudden resignation amid corporate governance & share buyback
issues may have left the investors in jittery and subsequently Infy is down
today by almost 7%, dragging the Nifty index by over 42 points alone. His
resignation may also trigger more attrition among other key Infy people.
After Tata Sons fiasco with Mistry,
this Infy incident may also raise concerns among the investors for the overall corporate
governance of Indian promoters or legacy founders and their relationship with
the professional CEOS in their cos, who are supposed to work for the betterment
of the co independently without much interference from the founders and is answerable
only to the board.
Thus, it may be best for the family
oriented large Indian cos to appoint someone eligible within their family as
CEO rather than taking service of an outsider, who may not be their “yes man”
always; founders’ family have to come forward directly to manage their own co
at driver’s seat, rather than trying to operate it through a remote control.
SGX-NF
SPX-500
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