Friday, 17 November 2017

Nifty Caught A Bid & Soared By More Than 1% On Positive Global Cues & Lower Oil And PSBS Recaps Optimism



Note: Just now Moody’s has upgraded India’s rating to Baa2 form Baa3 with stable outlook; as a result, SGX-Nifty soared to 10340 level but there was another news that NK is developing some types of ballistic missiles submarine and USD is getting a knee-jerk reaction also as risk-aversion move.

Market Wrap: 16/11/2017 (17:00)

NSE-NF (Nov):10264 (+110; +1.08%) 

(TTM PE: 26.06; Abv 2-SD of 25; TTM Q1FY18 EPS: 392; NS: 10215; Avg PE: 20; Proj FY-18 EPS: 418; Proj Fair Value: 8360)

NSE-BNF (Nov):25550 (+232; +0.92%) 

(TTM PE: 28.98; Near 3-SD of 30; TTM Q1FY18 EPS: 878; BNS: 25447; Avg PE: 20; Proj FY-18 EPS: 961; Proj Fair Value: 19220)

For 17/11/2017: 

Key support for NF: 10305-10235

Key resistance for NF: 10365-10410

Key support for BNF: 25325-25200

Key resistance for BNF: 25750-25950

Trading Idea (Positional):

Technically, Nifty Fut-Nov (NF) has to sustain over 10365 area for further rally towards 10410-10460 & 10500/10535-10575 zone in the short term (under bullish case scenario). 

On the flip side, sustaining below 10345 area, NF may fall towards 10305/10285-10235 & 10190 -10140/10095 zone in the short term (under bear case scenario).

Technically, Bank Nifty-Fut (BNF) has to sustain over 25750 area for further rally towards 25825-25950 & 26100-26325 zone in the near term (under bullish case scenario).

On the flip side, sustaining below 25700 area, BNF may fall towards 25550-25325 & 25200-24950 area in the near term (under bear case scenario).

Indian market (Nifty Fut/India-50) today closed around 10264, soared by almost 110 points (+1.08%) after making an opening minutes low of 10162 and closing tick high of 10265. Indian market today opened around 10174, edged up on stable global/Asian cues on higher USD amid hopes of a credible US tax reform plan/compromise & Dec’17 rate hikes. 

Asia-Pacific market was also boosted by earnings optimism & stable commodities after huge liquidity injection by PBOC from Monday to cool down the growing concern about China bond market.

Thus, soon after opening, Indian market caught a bid amid huge short covering & also some bargain hunting on lower oil, which was one of the major headwinds for last seven days steep correction. Also PSBS recaps optimism, stable USDINR and improvement in GST collections (revenue) by various state Govts may have boosted the risk-on sentiment today, shrugging off the global & local risk-off mood for the last few days.

Today, Govt has also announced some small incremental reforms under affordable housing: Indian Cabinet Today Approved Hiking Carpet Area Cap for Housing Interest Subvention; Hikes Carpet Area of Houses Eligible for Subsidy to Middle Income Group under PMAY. Increase In Carpet Area From 90 Sq Mt To 'Upto 120 Sq Mt' Under MIG-I. Increase In Carpet Area From 110 Sq Mt 'Upto 150 Sq Mt' Under MIG-II. As a result, reality/property developers stock came into limelight.

FMO was also active and seeks Report of All Infra Projects Stuck in various Arbitration/Legal Proceedings.

FM was also upbeat at Singapore and commented that PSB Recap Package Will Help Redress Twin Balance sheet Issue, Revive Pvt Investment. India Most Favourable, Attractive Destination For Foreign Direct Investment. India Has Become One Of The Largest Recipients Of FDI In The World.

All these may have also boosted the Indian market sentiment today coupled with a global relief rally. Looking ahead, GJ elections may be a big trigger for the market, which may be closely contested between BJP & INC amid DeMo & GST blues.

Today Nifty was supported by Infy, RIL, SBI, Bajaj Fin, TCS, ICICI Bank, VEDL, HDFC, IOC & Tata Motors by almost 68 points cumulatively.

Nifty was dragged by Adani Ports, BPCL, Ultratech Cement, Coal India & Eicher Motors by around 9 points altogether.

Overall, all the sectors of the Indian market today contributed in the relief rally and among them PSBS surged by over 3% on recaps optimism and may be on some positive development (?) in the RCOM debt/NPA fiasco. 

Today management of other ADAG cos came forward and issued a statement that they have no debt or equity exposure to RCOM and board is different. After this, all the ADAG cos including RCOM staged a smart recovery.


Europe Set To Trade Upbeat On Higher USD & Stable Global Cues Despite Ongoing US Tax Reform Squabbling

By Asis Ghosh | 16/11/2017 - 08:53 

Asia Surged On Short Covering Tracking Higher USD On US Tax Reform Optimism & Upbeat Earnings

By Asis Ghosh| 16/11/2017 - 14:00 

USD Almost Flat On Mixed US Economic Data Ahead Of "Crucial" Tax Reform Vote In US House

By Asis Ghosh | 16/11/2017 - 16:23




SGX-NF


 BNF

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