Technical & Macro Analysis Of Indian & Global Market----: Market Mantra (Nifty Fut/Bank Nifty Fut/SPX-500): 07/05/2018

Monday, 7 May 2018

Market Mantra (Nifty Fut/Bank Nifty Fut/SPX-500): 07/05/2018

Updated: 08:25

SGX-NF: 10685 (+25; +0.23%)

Expected BNF opening: 25790 (+0.25%)

SPX-500: 2671 (+8; +0.31%)

Note: Gap-up opening on positive global /US cues on “Goldilocks” US NFP payroll data on Friday coupled with lower USD and “peaceful” US-China trade meeting without any meaningful outcome (talks will continue). Domestic market may now focus on earnings, politics-Karnataka election, macros-higher oil and NPA/NCLT resolution.

Fut-I (Key Technical Levels)

Support for NF:

10660/10635*-10590/10520-10490/10410

Resistance to NF:

10720/10740-10800*/10840-10875/10935

Support for BNF:

25650/25500-25350*/25150-25000/24800

Resistance to BNF:

25775/25850*-25915/26050-26150/26275

Support for SPX-500:

2660/2635-2610/2595-2580/2565

Resistance to SPX-500:

2675/2695-2705/2730-2750/2770

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

Technically, Nifty Fut-I (NF) has to sustain over 10740 for a further rally towards 10800/10840-10875/10935 in the short term (under bullish case scenario).

On the flip side, sustaining below 10720-10700 NF may fall towards 10660/10635-10590/10520 in the short term (under bear case scenario).

Technically, Bank Nifty-Fut (BNF) has to sustain over 25850 for a further rally towards 25915/26050-26150/26275 in the near term (under bullish case scenario).

On the flip side, sustaining below 25800-25775, BNF may fall towards 25650/25500-25350/25150 in the near term (under bear case scenario).

Technically, SPX-500 now has to sustain over 2695-2705 for a further rally towards 2730/2750-2765/2785 in the near term (under bullish case scenario).

On the flip side, sustaining below 2685-2675, SPX-500 may fall towards 2660/2635-2610/2595 and 2580/2565 in the near term (under bear case scenario).

Valuation metrics:

Nifty-50: 10618; Q3FY18 EPS: 403; Q3FY18 PE: 26.35; Avg FWD PE: 20; Proj FY-18 EPS: 418; Proj Fair Value: 8360

Bank Nifty: 25725; Q3FY18 EPS: 807; Q3FY18 PE: 31.88; Avg FWD PE: 20; Proj FY-18 EPS: 961; Proj Fair Value: 19220

SPX-500: 2663; TTM Q4-2017 EPS: 111; TTM PE: 24.00

Market Wrap: 04/05/2018

NSE-NF (May):10660 (-46; -0.43%)

NSE-BNF (May):25725 (+13; +0.05%)

SPX-500: 2663 (+34; +1.28%)

GLOBAL MARKET UPDATE: