Market Wrap: 01/11/2017 (17:00)
NSE-NF (Nov):10473 (+105; +1.01%)
(TTM PE: 26.50; Abv 2-SD of 25; TTM Q1FY18 EPS: 394;
NS: 10440; Avg PE: 20; Proj FY-18 EPS: 418; Proj Fair Value: 8360)
NSE-BNF (Nov):25535 (+478; +1.91%)
(TTM PE: 28.26; Abv 2-SD of 25; TTM Q1FY18 EPS: 902;
BNS: 25490; Avg PE: 20; Proj FY-18 EPS: 961; Proj Fair Value: 19220)
For 02/11/2017:
Key support for NF: 10450-10375
Key resistance for NF: 10505-10575
Key support for BNF: 25225-25050
Key resistance for BNF: 25575-25775
Trading Idea (Positional):
Technically, NF has to sustain over 10525 area for further rally towards
10575-10625 & 10675-10825 zone in the short term (under bullish case
scenario).
On the flip side, sustaining below 10505 area, NF may fall towards 10450-10375
& 10310-10195 zone in the short term (under bear case scenario).
Technically, BNF has to
sustain over 25625 area for further rally towards 25775-25935 & 26100-26325
zone in the near term (under bullish case scenario).
On the flip side,
sustaining below 25575 area, BNF may fall towards 25450-25225 & 25050-24850
area in the near term (under bear case scenario).
Indian market (Nifty Fut/India-50)
today closed around 10473, soared by almost 104 points (+1.01%) after making an
opening minutes’ low of 10403 and closing session high of 10489. Indian market
today opened in positive tone around 30 points gap-up on upbeat global cues
as USD & US stock market edged higher on hopes of a favourable corporate
tax cut plan by Trump & Co coupled with hopes for a dovish Fed chair in the
form of Powell, favourable for US stocks.
Overall global risk-on
sentiment was also improved visibly yesterday after
Catalan pro-independence leaders “fled” the country to peruse their political careers
from Brussels, the EU capital. Also upbeat Mfg PMI from China has boosted the
overall sentiment today, causing a global commodities rally, which has also
helped the Indian market to some extent today.
Apart from global goldilocks rally, domestic market sentiment
was also helped today by WB booster dose of “ease of doing business” in India,
mixed macro data & auto sales numbers for Oct; although Sep core sector
growth was upbeat, Mfg PMI for Oct was muted and most of the major auto sales
numbers came as subdued even in the festival month.
Clearly effect of GST
disruptions on the economy are still visible and thus Govt is considering
to form a new advisory group with various stakeholders to review the entire GST
laws and make it more simple & user friendly.
Although Indian market was euphoric today for huge improvement
in WB’s ease of doing business index as if it was a rating upgrade!!
But, fine prints of the report may be
not quite upbeat as the whole survey was limited to
only Mumbai & Delhi and that’s too before GST; in any way, it may be a
major boost for FDI in the country but lots of improvement also has to be done
on the ground as investors will only invest on their real experience and not
based on any report; recent experience of Vodafone, Cairn, Docomo may not be so
pleasant.
Today banks & reality stocks helped the market on optimism
about Govt’s recap, consolidation & stimulus move on roads & ports
infra spending (Bharatmala project) for Rs. 6.90 tln.
Apart from bail out of banks (PSBS) & corporate defaulters
by the Govt (NPA resolution), overall
banking sentiment was also boosted by SBI action of lowering fixed deposit
rates by a huge 0.25%, while reducing only 0.05% for lending rate (MCLR). This
is positive for bank’s NIM and SBI being the lead banker in India, market is
expecting that all the other banks will follow soon.
Today Nifty was
supported by ICICI Bank, HDFC, SBI,
Bharti Airtel (better than expected result and Infratel deleveraging), VEDL
(metals rally after good China Mfg PMI & hopes for a dovish Fed), RIL(higher
oil & telecom optimism), ITC, Tata Motors (e-car order by the Govt), HDFC
Bank & Axis Bank (buzz of 10% stake buy by Bain capital along with some
DII); together these cos has contributed almost 118 points.
Nifty was dragged by Eicher motors (muted Oct sales), Bharti Infratel (buzz of tower
stake sale at lower Prices), TCS, DRL (muted earnings), L&T, UPL, HCL Tech,
HPCL, ZEEL & Sun Pharma by cumulative around 33 points.
Overall, today Indian market was helped by banks & financials, FMCG,
metals, property developers/reality, energies while it was dragged by
automobiles, techs, media, and healthcare stocks.
Europe Set To Trade In Green On Positive Global Cues Amid Upbeat Mfg PMI & Renewed US Tax Reform Optimism And Signs Of Catalan Peace
Asia Starts Nov In Top Gear As USD Goes Higher On Renewed US Tax Reform Optimism Coupled With Solid PMI From China & Higher Oil
USD Looking Stressed After Mixed US Economic Data Ahead Of Fed & Tax Cut Suspense
SGX-NF
USDJPY
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