Market Mantra: 14/09/2017 (09:00)
SGX-NF: 10090 (-6)
For the Day:
Key support for NF: 10085/10050-10000/9945
Key resistance for NF: 10140/10160-10205
Key support for BNF: 24725-24600/24500
Key resistance for BNF: 24875-24975/25075
Hints for positional trading:
Technicals
indicate that, NF has to sustain over 10160 area for further rally towards
10205-10250 & 10325-10385 area in the short term (under bullish case
scenario).
On the flip side, sustaining below 10140 area, NF may fall
towards 10060-10000 & 9945-9870 area in the short term (under bear case
scenario).
Similarly, BNF has to sustain over 24975 area for further rally
towards 25075-25150 & 25250-25585 area in the near term (under bullish case
scenario).
On the flip side, sustaining below 24925-24875 area, BNF may
fall towards 24725-24600 & 24500 -24250 area in the near term (under bear
case scenario).
As par early SGX
indication, Nifty Fut (Sep) may open around 10090, almost flat (-6 points)
tracking muted/mixed Asian/Global cues amid subdued China economic data &
optimism about US tax reform coupled with renewed NK missile concern.
Overnight US market edged
up in another trio of record close (DJ/S&P/NQ) on gains by consumer
discretionary & energies coupled with losses by techs/chip makers on Apple
i-Phone disappointment and healthcare & property developers/real estate
stocks. DJ-30 closed around 0.18% higher, while S&P-500 & NASDAQ edged
up by around 0.08%. US stock Fut
(SPX-500) is now trading around 2493, down by almost 0.15%.
Although, US economic data (PPI) was subdued yesterday, USD/US bond yields got some boost from
an imminent US tax reform hopes & official publication of the tax proposal
on 25th Sep coupled with Trump’s bipartisan approach to get the
legislation passed by US congress. This
may be a significant legislative win by Trump after his recent strategy to team
up with DNC for the extension of temporary US debt limit & Harvey relief,
even for the risk of bypassing his own RNC members.
But, it may be too early to be over optimistic
about Trump’s political maturity & his ability to pass key US economic reform
legislative agenda as US political drama may be far from over. Despite US tax
reform optimism, USD is not able to break the 111 level because of ongoing NK
& Trump’s alleged Russian link investigation.
But again, NK hangover may be a perfect instrument
for Trump to keep the USD lower, while perusing for his tax reform agenda. USD
came under some pressure again after news that NK is moving its mobile missile
launcher and may be preparing for another Nuke enabled ICBM test, which is able
to strike US mainland.
Back to home, Indian
market (Nifty Fut) may try again to catch up the life time high after
opening almost flat on the day of India’s
historic “Bullet Train” project inauguration jointly by India’s & Japan’s
PM today; bullet train may be a symbol of India’s aspiration to grow bigger in
line with developed countries.
But Govt may also now focus on Indian Railway reform in line
with airlines to make it a modern day railway with average speed above 100-150 km/hr
from present 55 km/hr and that may be a true signal of India’s development. The
average speed of Indian railway is almost the same under NDA now as was under
UPA and thus the GDP growth rate is also identical!!
Today Indian market may focus on Govt’s “commitment” to not
interfere in oil pricing mechanism by the OMCS; but Govt is also non-committal
about tax reform in oil products and also not ready to roll back the excess
tax/ED imposed during times of exigencies & urgent need for revenue as
overall fiscal math may not be sound now.
All eyes may be also on WPI today after surge in CPI, which is
poised to come around 3% for Aug vs 1.88% recorded in July; a higher WPI may be
negative for GDP/GVA deflator and the unfavorable base effect of the WPI (from
negative last year to positive this year) may be one of the primary reasons
behind the dramatic fall in India’s recent GDP apart from adverse effect of
DeMo & GST.
SGX-NF
No comments:
Post a Comment