Technical & Macro Analysis Of Indian & Global Market----: Nifty Edged Up On Positive Global Cues & PSBS Optimism About IBC Amendment & Hopes Of Speedy NPA Resolution

Thursday, 23 November 2017

Nifty Edged Up On Positive Global Cues & PSBS Optimism About IBC Amendment & Hopes Of Speedy NPA Resolution

Market Wrap: 22/11/2017 (17:00)

NSE-NF (Nov):10360 (+8; +0.08%)

(TTM PE: 26.34; Abv 2-SD of 25; TTM Q1FY18 EPS: 392; NS: 10342; Avg PE: 20; Proj FY-18 EPS: 418; Proj Fair Value: 8360)

NSE-BNF (Nov):25803 (+7; +0.01%)

(TTM PE: 29.34; Near 3-SD of 30; TTM Q1FY18 EPS: 878; BNS: 25758; Avg PE: 20; Proj FY-18 EPS: 961; Proj Fair Value: 19220)

For 23/11/2017:

Key support for NF: 10315-10270/10180

Key resistance for NF: 10395/10415-10460

Key support for BNF: 25700-25500

Key resistance for BNF: 26000-26100

Trading Idea (Positional):

Technically, Nifty Fut-Nov (NF) has to sustain over 10415 area for further rally towards 10460- 10500/10535 & 10575-10675 zone in the short term (under bullish case scenario).

On the flip side, sustaining below 10395 area, NF may fall towards 10315-10270 & 10190-10150 zone in the short term (under bear case scenario).

Technically, Bank Nifty-Fut (BNF) has to sustain over 26000 area for further rally towards 26100-26325 & 26400-26675 zone in the near term (under bullish case scenario).

On the flip side, sustaining below 25950-25800 area, BNF may fall towards 25700-25500 & 25350-25150 area in the near term (under bear case scenario).

Indian market (Nifty Fut/India-50) today closed around 10360, edged up by almost 8 points (+0.08%) after making an opening session high OF 10388 and mid day low of 10321.

Indian market today opened around 10383, gap up by almost 31 points tracking upbeatglobal/Asian cues, but soon after opening in positive mode, it went into negative and plunged to the day low on GS’s view that RBI may hike by 0.75% in 2018-19.

But market made some recovery after news that Govt is amending certain provisions of IBC act to help the banks for speedy resolution of corporate NPA and prevent back door entry of errant promoters/willful defaulters; PSBS jumped.

But Nifty Dragged By Renewed Concern Of Fiscal Slippages On Higher Oil & Another Pay Commission:

Market has also got some boost on hopes for further GST reform to aid consumers & FMCG items, but was also on pressure on surging oil (WTI) now hovering around $58 and Govt’s proposal to set up 15^th Fin commission for another pay hike for Central Govt employees; fiscal math may be strained.

Overall, Indian market was today helped by PSBS, automakers, financials, FMCG, media, property developers, consumer staples, while dragged by metals, healthcare. Private banks.

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