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
Asia Surged On Short Covering Tracking Higher USD On US Tax Reform Optimism & Upbeat Earnings
USD Almost Flat On Mixed US Economic Data Ahead Of "Crucial" Tax Reform Vote In US House
SGX-NF
BNF
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