Nifty May Be In Stress On Mixed Report Card & Sudden Crisis In India’s Top Judiciary

Market Mantra: 12/01/2018 (09:00)

SGX-NF: 10700 (-5)

For the Day: updated: 14:35

For 11/01/2018: Jan-Fut

Key support for NF: 10695/10640-10590/10560

Key resistance for NF: 10750/10775-10815/10850

Key support for BNF: 25600/25500-25325/25200

Key resistance for BNF: 25775/25875-26000/26200

Trading Idea (Positional):

Technically, Nifty Fut-Jan (NF) has to sustain over 10775 area for further rally towards 10815/10860- 10955 & 11095-11155 zone in the short term (under bullish case scenario). 

On the flip side, sustaining below 10750 area, NF may fall towards 10695/10640-10590/10560 & 10515/10450-10415/10360 zone in the short term (under bear case scenario).

Technically, Bank Nifty-Fut (BNF) has to sustain over 25875 area for further rally towards 26000/26100-262000/26250 & 26325-26615 zone in the near term (under bullish case scenario).

On the flip side, sustaining below 25825 area, BNF may fall towards 25600/25500-25325/25200 & 25000-24850 area in the near term (under bear case scenario).

Indian market (Nifty Fut-Jan/India-50) is now trading around 10650, almost flat after plunging to session low of 10602 so far from the opening minutes high of 10694 amid sudden crisis in India’s top judiciary (SC) after four sitting judges alleged that SC administration is “not in order; efforts to reform have failed”. 

The allegation is serious and may undermine investor trust on India’s judiciary as something may have rotten in the system as SC may be bowing down to political pressure; thus market succumbed.

Four sitting judges of SC has raised today some serious issues in an unprecedented press conference regarding allocation of cases by CJI, especially some death cases of sitting judges, functioning of the collegiums (SC judges appointment process), MCI case etc. 

They further commented that “in the present condition, democracy won’t survive” and they have to discharge the debt to the nation as CJI has declined their suggestions. 

Meanwhile, PM has meet with the law minister and CJI is scheduled to take a proper hearing & may also address a presser to clarify the overall situation and market has also bounced back from the panic day low.

Market may be also concerned about fate of LTCGT issue, but got some boost earlier on news of DDT & STT removal in the budget. Overall, market may be looking for some excuse for long unwinding (profit booking) and fresh shorts amid mixed report card so far & stretched valuation; earnings has to justify the present market euphoria. All eyes may be now on judiciary crisis & Infy earnings along with CPI & IIP data later today. Global cues are mixed today amid higher EUR & lower USD.

SGX-NF

SPX-500