Nifty May Close In Green On Pvt Banks Boost Despite Mixed Global Cues & Subdued Q3 Earnings So Far

Market Mantra: 15/01/2018 (09:00)

SGX-NF: 10725 (+41)

For the Day: updated: 14:40

For 15/01/2018: 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 10740, surged by another 0.50% be off the day high of 10774 as broader market may be coming under selling pressure mirroring late selling in China & HK market and flat opening of EU market contrary to earlier solid gains.

Indian market sentiment was today boosted by renewed optimism about private banking space on hopes of corporate earnings revival (+21% in Q3FY18?) and B/S & NPA/NPL clean up despite mixed set of report cards so far and digitalization optimism. 

Also, fund raising and growth in affordable housing may have boosted HDFC today and along with that rally in other private banks (HDFC/ICICI/AXIS) are supporting the market today; both Nifty & Bank Nifty has scaled fresh life time high of 10782.65 & over 26050 on portfolio buying & power of DII liquidity.

Meanwhile, Indian WPI for Dec came lower at 3.58% vs est 4% (prior: 3.93%; WPI is Indian version of PPI; although a lower WPI may result in lower inflation in the coming days, it’s may be also an indication of tepid pricing power by the manufacturers and subdued demand/economic activity; Dec Core WPI came at 3.1% vs 3% (MOM), almost at same level; fall in food/VEGETABLE inflation may be seasonal (Winter).

Overall market sentiment was also being supported by ongoing global goldilocks rally and hopes for a market friendly budget, but boiling oil & central bank quantitative tightening (QT) and US corp tax cuts may be some of the spoilers in the coming days. 

SGX-NF

SPX-500