Market Mantra (Nifty Fut/Bank Nifty Fut/SPX-500): 03/05/2018

Updated: 08:25

SGX-NF: 10708 (-36; -0.34%)

Expected BNF opening: 25565 (-0.35%)

SPX-500: 2627 (-1; -0.04%)

(Gap-down opening on subdued global cues amid concern of US-China trade negotiations outcome, the buzz of fresh sanctions on China ZTE and Huawei coupled with Fed’s hawkishness about US inflation, which may prompt Fed for quicker rate hikes despite a “dovish hold” on Wednesday. The Indian market is also under pressure in an opinion poll, which suggests INC win in Karnataka election).

Fut-I (Key Technical Levels)

Support for NF:

10675/10635*-10590/10570-10510/10460

Resistance to NF:

10735/10775-10800*/10840-10870/10900

Support for BNF:

25500/25350*-25150/25000-24800/24700

Resistance to BNF:

25675/25775*-25850/25915-26050/26150

Support for SPX-500:

2620/2610-2595/2575-2550/2525

Resistance to SPX-500:

2635/2665-2685/2705-2730/2750

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

Technically, Nifty Fut-I (NF) has to sustain over 10755 for a further rally towards 10775/10800-10840/10870 in the short term (under bullish case scenario). 

On the flip side, sustaining below 10735 NF may fall towards 10695/10675-10635/10590 in the short term (under bear case scenario).

Technically, Bank Nifty-Fut (BNF) has to sustain over 25675 for a further rally towards 25775/25850-25915/26050 in the near term (under bullish case scenario).

On the flip side, sustaining below 25625, BNF may fall towards 25500/25350-25150/25000 in the near term (under bear case scenario).

Technically, SPX-500 now has to sustain over 2665 for a further rally towards 2685/2705-2730/2750 in the near term (under bullish case scenario).

On the flip side, sustaining below 2655, SPX-500 may fall towards 2620/2610-2595/2575 in the near term (under bear case scenario).

Valuation metrics:

Nifty-50: 10718; Q3FY18 EPS: 403; Q3FY18 PE: 26.60; Avg FWD PE: 20; Proj FY-18 EPS: 418; Proj Fair Value: 8360

Bank Nifty: 25568; Q3FY18 EPS: 807; Q3FY18 PE: 31.68; Avg FWD PE: 20; Proj FY-18 EPS: 961; Proj Fair Value: 19220

SPX-500: 2636; TTM Q4-2017 EPS: 111; TTM PE: 23.75

GLOBAL MARKET STORY:

SGX-NF

BNF

SPX-500

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