Market Mantra: 18/08/2017 (09:00)
SGX-NF: 9860 (-54)
For the Day:
*Key support for NF: 9815/9795-9765/9705*
*Key resistance for NF: 9885/9905-9950/9980*
*Key support for BNF: 24250-24150*
*Key resistance for BNF: 24425-24525*
*Hints for positional trading:*
*Time & Price action suggests that, NF has to sustain over 9905 area for
further rally towards 9950/9980-10005/10035 & 10095-10115 area in the
short term (under bullish case scenario).*
*On the flip side, sustaining below 9885-9865 area, NF may fall towards
9815/9795 & 9765-9705 area in the short term (under bear case scenario).*
*Similarly, BNF has to sustain over 24525 area for further rally towards
24600-24725 & 24900-25025 area in the near term (under bullish case
scenario).*
*On the flip side, sustaining below 24475-24425 area, BNF may fall
towards 24250-24150 & 23950-23850 area in the near term (under bear case
scenario).*
As par early SGX indication, Nifty Fut (Aug) may open around 9860, down
by almost 54 points tracking subdued global cues after the tragic
terrorist incident at a popular tourist place in Spain/Barcelona coupled
with ongoing US political/policy paralysis and resignation squabbling
(rumour) of Cohn, a key architect of Trump’s tax reform policy & his
chief economic adviser and also the potential replacement of Yellen.
Although, Cohn has not resigned till now, he may be under immense
pressure from intellect & corporate US to distance himself from Trump
amid his controversial stance on the VA white nationalistic fiasco.
Overall, US political & policy paralysis coupled with poor visibility of
Trumponomics may be huge negative for the USD & risk assets including
equity.
As corporate America is deserting Trump one by one, market may be
unnerved as despite so much Trump tantrum, his corporate circle may be
one of the elements of confidence boosting among the investors, as they
still believed Trump’s ability to deliver his Trumponomics narratives.
But, now the whole rhetoric of Trumponomics may be extremely doubtful
not only for the ongoing daily US political entertainment, but may be
also for limited fiscal maneuver room in the US budget itself.
Even, Trump’s own RNC GOP members now seems to be distancing themselves
from the controversial hardcore nationalistic/racist image and all these
may be also an indication that days of Trump as US Prez may be over; he
may either resign or impeached shortly.
Although, yesterday’s overall US economic data may be mixed, the ongoing
US political drama coupled with Cohn’s resignation buzz and above all,
the tragic terrorist incident at Spain has made the USD & risk assets
(US/global equity) lower. As a result, overnight US market (DJ-30)
closed in deep red around 21751 (-1.24%) and SPX-500 now also trading
almost flat around 2430 (+0.14%) on geo-political risk aversion.
Looking ahead, SPX-500 now need to sustain over 2420-2415 zone;
otherwise 2395-2370 zone may be clearly visible.
Back to home, after opening in deep red, Indian market is now in further
stress following surprised (?) resignation of Infy CEO Vishal Sikka amid
an environment of trust deficit & repeated interference in the
functioning of the Co by its founders. Although, Sikka has been
reappointed as an executive VC, the role may be not clear for the
market/investors.
Sikka was instrumental in reviving the performance of Infy, since he
took over in 2014 and market has a great trust in his ability; thus his
sudden resignation amid corporate governance & share buyback issues may
have left the investors in jittery and subsequently Infy is down today
by almost 7%, dragging the Nifty index by over 42 points alone. His
resignation may also trigger more attrition among other key Infy people.
After Tata Sons fiasco with Mistry, this Infy incident may also raise
concerns among the investors for the overall corporate governance of
Indian promoters or legacy founders and their relationship with the
professional CEOS in their cos, who are supposed to work for the
betterment of the co independently without much interference from the
founders and is answerable only to the board.
Thus, it may be best for the family oriented large Indian cos to appoint
someone eligible within their family as CEO rather than taking service
of an outsider, who may not be their “yes man” always; founders’ family
have to come forward directly to manage their own co at driver’s seat,
rather than trying to operate it through a remote control.
<https://4.bp.blogspot.com/-8e5H3Mp1cGA/WZZ2qW95oBI/AAAAAAAAMxI/n6vZDL7v_kwNsKOtXS65F82dtn3iegamQCLcBGAs/s1600/SGX-NF-18-08-2017.png>
SGX-NF
<https://1.bp.blogspot.com/-6LbF98tFbUQ/WZZ2yWsEsVI/AAAAAAAAMxM/RKrryR5269M1hNKGmlsgiggUdc2rf2yvgCLcBGAs/s1600/SPX-500-18-08-2017.png>
SPX-500
--
Thanks & Regards,
Asis Ghosh
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