Technical & Macro Analysis Of Indian & Global Market----: Market Mantra (Nifty Fut/Bank Nifty Fut/SPX-500): 28/05/2018

Monday 28 May 2018

Market Mantra (Nifty Fut/Bank Nifty Fut/SPX-500): 28/05/2018

Updated: 08:40

SGX-NF: 10650 (+42; +0.40%)

Expected BNF opening: 26370 (+0.50%)

SPX-500: 2729 (+11; +0.41%)

Fut-I (Key Technical Levels)

Support for NF:

10630/10605*-10570/10535-10490/10405-10365/10340

Resistance to NF:

10655/10675*-10720/10750-10800/10875-10935/10955

Support for BNF:

26300/26125*-26050/25900-25800/25600-25500/25400

Resistance to BNF:

26425/26475-26550*/26650-26825/26950-27050/27250

Support for SPX-500:

2715/2695*-2675/2655-2625/2610

Resistance to SPX-500:

2745/2760*-2775/2805-2820/2855

Technical View (Nifty, Bank Nifty, SPX-500):

Technically, Nifty Fut-I (NF) has to sustain over 10675 for a further rally to 10720/10750-10800/10875-10935/10955 in the near term (under bullish case scenario).

On the flip side, sustaining below 10655 NF may fall to 10630/10605-10570/10535-10490/10405-10365/10340

in the near term (under bear case scenario).

Technically, Bank Nifty-Fut (BNF) has to sustain over 26475 for a further rally to 26550/26650-26825/26950-27050/27250 in the near term (under bullish case scenario).

On the flip side, sustaining below 26425 BNF may fall to 26300/26125-26050/25900-25800/25600in the near term (under bear case scenario).

Technically, SPX-500 now has to sustain over 2760 for a further rally to 2775/2805-2820/2855-2880/2895 in the near term (under bullish case scenario).

On the flip side, sustaining below 2745, SPX-500 may fall to 2725/2715-2695/2675-2655/2625 in the near term (under bear case scenario).

Valuation metrics:

Nifty-50: 10605; Q3FY18 EPS: 403; Q3FY18 PE: 26.31; Avg FWD PE: 20; Proj FY-18 EPS: 418; Proj Fair Value: 8360

Bank Nifty: 26265; Q3FY18 EPS: 807; Q3FY18 PE: 32.55; Avg FWD PE: 20; Proj FY-18 EPS: 961; Proj Fair Value: 19220

SPX-500: 2721; TTM Q4-2017 EPS: 111; TTM PE: 24.51

Note: Positive opening on upbeat global cues amid increasing hopes of a North Korean truce and some fall in bond yields. For the Indian market, apart from the 4^th anniversary of the NAMO government, risk-on sentiment was boosted by plunge in oil of more than 7% in the last few days amid OPEC-NOPEC/Russian squabbling about increase of oil output (compliance level from 152% to 100%) and a doubt about the production extension agreement beyond Dec’2018.

GLOBAL MARKETS ANALYSIS:

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