Market Wrap: 03/11/2017 (17:00)
NSE-NF (Nov):10489 (+34; +0.33%)
(TTM PE: 26.53; Abv 2-SD of 25; TTM Q1FY18 EPS: 394;
NS: 10452; Avg PE: 20; Proj FY-18 EPS: 418; Proj Fair Value: 8360)
NSE-BNF (Nov):25677 (+208; +0.82%)
(TTM PE: 28.44; Abv 2-SD of 25; TTM Q1FY18 EPS:
902; BNS: 25651; Avg PE: 20; Proj FY-18 EPS: 961; Proj Fair Value: 19220)
For 06/11/2017:
Key support for NF: 10415-10345
Key resistance for NF:
10505-10575
Key support for BNF:
25300/25200-25050
Key resistance for BNF:
25800-25950
Trading Idea (Positional):
Technically, NF has to sustain over 10525 area for further rally towards
10575-10625 & 10675-10835 zone in the short term (under bullish case
scenario).
On the flip side, sustaining below 10505 area, NF may fall towards 10415-10345
& 10290-10195 zone in the short term (under bear case scenario).
Technically, BNF has to
sustain over 25800 area for further rally towards 25950-26100 & 26325-26615
zone in the near term (under bullish case scenario).
On the flip side,
sustaining below 25750 area, BNF may fall towards 25400-25300/25200 & 25050-24850
area in the near term (under bear case scenario).
Indian market (Nifty Fut/India-50)
today closed around 10489, edged up by almost 34 points (+0.33%) after making a
pre-EU session low of 10425 and late day high of 10493.
Market today opened around 10470, up by almost 18 points and soon after that it came into some selling spree tracking mixed Global/Asian cues amid new Fed chair as expected, a confusing US tax proposal coupled with some China concern and rally in basic materials (iron ore) in Australia (sudden surge in physical demand).
Market today opened around 10470, up by almost 18 points and soon after that it came into some selling spree tracking mixed Global/Asian cues amid new Fed chair as expected, a confusing US tax proposal coupled with some China concern and rally in basic materials (iron ore) in Australia (sudden surge in physical demand).
Apart from mixed global cues, concern of muted earnings, subdued
Mfg PMI and Oct auto sales numbers may be also affecting the overall Indian
market sentiment. But it recovered from day low soon after improved Service PMI
at 51.8 vs est 50.8; prior: 50.6 coupled with positive opening of EU market on lower
EUR & some earnings boost.
Eventually Indian market made a small late day rally on improved/better than expected report card & some improvement in fresh stressed assets formation trend from PNB, one of the PSBS major and also joined by similar rally in SBI on earnings optimism ahead of its result next week.
Eventually Indian market made a small late day rally on improved/better than expected report card & some improvement in fresh stressed assets formation trend from PNB, one of the PSBS major and also joined by similar rally in SBI on earnings optimism ahead of its result next week.
Market sentiment may have also boosted today by FM’s stimulus talks that Govt may build
35-40 airports across the country to boost up the economy after recent plunge
as a result of structural reform (DeMo/GST).
Tracking the usual current trend of global goldilocks rally,
Indian market also closed at new milestone high and for the week, Nifty gained
by around 1.25%, also boosted by improvement in “ease of doing business” index
of WB.
Nifty was today supported by Tata Motors (benefit? of cross currency hedge/equation from
fall in GBP after dovish hike by BOE yesterday), SBI, L&T, Indusind Bank,
HDFC, HDFC Bank, Bajaj Fin, Axis Bank, Yes Bank & ONGC (higher WTI) by
around 51 points cumulatively.
Nifty was dragged by Power Grid, Sun Pharma, VEDL (muted report card), Bharti
Infratel, BPCL, IOC (higher crude may affect margin of OMC), Hero Motors (muted
Oct sales fig), HCL Tech, Adani Ports, ICICI Bank by around 18 points
altogether.
Overall, Indian market was today helped by banks & financials,
automobiles, media, property developers/reality, while dragged by FMCG,
techs/IT, and healthcare/pharma.
Crude Oil May Be A Big Headwind For
The Indian Economy, If It Stays Over 55.75:
Meanwhile, Crude Oil
(WTI) closed around 55.70, up by almost 2.13% on dual jawboning (Russia &
Saudi) about extension of production cut for another year after March’18.; all
eyes may be now on Nov end meet of OPEC-NOPEC.
As par some reports, contribution of Saudi jawboning is significant behind today’s Brent price of around $61 and Saudis may be aiming for a price of $70 to make its mega IPO (Armco) successful and that price may be also helpful for their budget (fiscal discipline).
As par some reports, contribution of Saudi jawboning is significant behind today’s Brent price of around $61 and Saudis may be aiming for a price of $70 to make its mega IPO (Armco) successful and that price may be also helpful for their budget (fiscal discipline).
A higher oil price may be beneficial for all oil producers
including US, Russia and Canada and even EU (for imported inflation equation)
and may be also good for overall financial market/SWF; but it may not be good
for Indian economy at all!!
Apart from ongoing OPEC-NOPEC jawboning, increasing demands from
China is also helping oil sentiment amid prospect of tighter supplies; China is
now world’s top crude importer at 9 mpbd, surpassing even US.
But, with increasing crude price, more US shale oil supplies are
coming online with significant hedges for 2018; this may be also a major
headwind for oil apart from the fact that a high probable production cut
extension for another year beyond March’18 may be already discounted to a great
extent.
Technically, next hurdle for WTI is around 55.75 zone and only sustaining
above that, 57.70-59.05 area may be easily visible; otherwise it will come
down; near term support is now around 55.20 & 53.70-52.70 zone.
Europe Set To Trade In Positive Amid Mixed Global Cues After US Tax Plan & New Fed Chair And Overnight Plunge In GBP On "Dovish Hike" By BOE
Asian Stocks Inched Higher On Higher Iron Ore prices & Huge Liquidity Push By PBOC
USD Made An Weekly Top On Upbeat ISM Data After Hurricane Distorted Terrible NFP Report
SGX-NF
WTI
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