*Market Wrap <https://www.iforex.in/news>*:
<https://www.iforex.in/news>*25/04/2018*
*
*
*NSE-NF (April):10569 (-49; -0.46%)*
*
*
*NSE-BNF (April):24785 (-229; -0.91%)*
*
*
*SPX-500: 2639 (+5; +0.18%)*
*
*
*Market Mantra: 26/04/2018*
*
*
*Updated: 08:40*
*
*
*SGX-NF: 10580 (+11; -0.10%)*
*
*
*Expected BNF opening: 24810 (+0.10%)*
*
*
*SPX-500: 2649 (+5; +0.19%)*
*
*
*(Flat opening on mixed global/US cues amid higher bond yields and surge
in Boeing on an upbeat report card coupled with higher USD, positive for
export savvy Asian market)*
*
*
*March-Fut/Spot (Key Technical Levels)*
*Support for NF:***
*10515/10460-10415/10380*-10340/10290*
*Resistance to NF:***
*10615/10655-10675*/10725-10765/10815***
*Support for BNF:***
*24800*/24550-24400/24250-24050/23850***
*Resistance to BNF:***
*25100/25200-25450*/25655-25775/25850*
*Support for SPX-500:*
*2630/2610-2595/2575-2550/2525*
*Resistance to SPX-500:*
*2665/2685-2705/2730-2750/2765*
*Technical View (Positional-Nifty, Bank Nifty, SPX-500):*
*Technically, Nifty Fut-I (NF) has to sustain over 10615 for a further
rally towards 10655/10675- 10725/10765 in the short term (under bullish
case scenario). ***
*On the flip side, sustaining below 10595 NF may fall towards
10515/10460-10415/10380 in the short term (under bear case scenario).***
*Technically, Bank Nifty-Fut (BNF) has to sustain over 25100 for a
further rally towards 25200/25450-25655/25775 in the near term (under
bullish case scenario).***
*On the flip side, sustaining below 25050, BNF may fall towards
24800/24550-24400/24250 in the near term (under bear case scenario).*
*Technically, SPX-500 now has to sustain over 2685 for a further rally
towards 2705/2730-2750/2765 in the near term (under bullish case scenario).*
*On the flip side, sustaining below 2665, SPX-500 may fall towards
2630/2610-2595/2575 in the near term (under bear case scenario).*
*
*
*Valuation metrics:*
*
*
*Nifty-50: 10571; Q2FY18 EPS: 410; Q2FY18 PE: 25.78; Avg FWD PE: 20;
Proj FY-18 EPS: 418; Proj Fair Value: 8360*
*
*
*Bank Nifty: 24814; Q3FY18 EPS: 820; Q2FY18 PE: 30.26; Avg FWD PE: 20;
Proj FY-18 EPS: 961; Proj Fair Value: 19220*
*The Indian and global market story
<https://www.iforex.in/analysis/nifty-slumped-negative-global-cues-amid-higher-bond-yields-51367>on
25/04/2018:*
The Indian market (Nifty Fut/India-50)closed around 10569 on Wednesday,
tumbled by almost 0.46% on negative global cues amid higher oil, higher
bond yields and renewed pressure on banking & metal stocks. Nifty Fut
made an opening session high of around 10613 and late day low of 10532
in a day of the volatile trading session ahead of the FNO expiry on
Thursday.
Exporters (techs/IT) helped the Indian market on higher USDINR.
Reality/property developers were in demand after a report of higher FSI
(development area) in Mumbai from 1.33 to 3, which would be positive for
affordable housing. Report cards from Wipro, Ultratech Cement were also
muted, while Bharti Airtel has reported a mixed set of numbers.
Indian 10Y bond yield made a high of 7.779% on Wednesday, up by almost
10 bps from Tuesday’s close on higher oil, higher inflation concern and
following the global trend of higher bond yields. Subsequently, Indian
market, especially banks came under heavy selling pressure. Metals were
also under stress on NCLT/IBC NPA resolution headwinds despite positive
global cues (on metals).
Additionally, index heavyweight ICICI bank was in pressure on reports
that the bank has dropped the plan for selling/deleveraging its housing
finance unit coupled with another report that Essar group has lent to
CEO’s spouse company after getting a loan from the bank. Axis bank was
also under stress on the concern of poor earnings to be released on
Thursday. But banks were also supported to some extent by the buzz of
time extension for the NCLT/IBC NPA resolution mechanism.
On Wednesday, Nifty was helped by TCS, Bharti Airtel (telecom tower
deal/deleverage), M&M, Infy, HCL Tech, Kotak Bank, Tech-M, Yes Bank,
BPCL, Power Grid and others by around 27 points, while it was dragged by
ICICI Bank, HDFC Bank, ITC, L&T, Maruti, HDFC, Indusind Bank, ONGC,
VEDL, SBI and others by almost 72 points (47+25) cumulatively.
Overall on Wednesday, Indian market was helped by techs, reality, while
dragged by almost all the other sectors like banks and financials
(higher bond yields and renewed concern about NPA), FMCG, media, metals,
pharma, energies, and infra stocks.
*Global cues were negative during Indian market hours on Wednesday:*
*
*
US stock future (SPX-500) was down by 0.52% and European stocks were
down by 1.16% at a 1-week low on higher bond yields and higher borrowing
costs, negative for both the economy and the corporate earnings. Stocks
were under pressure because of stress in industrials and techs.
European industrial stocks sold-off following the nearly 7% plunge in
Caterpillar on Tuesday. Industrial stocks sold-off amid cautious
comments from Caterpillar's CFO on his outlook for the year and muted
guidance, which fueled concern over profits in the sector as well as the
health of the global economy. He said Q1 adjusted EPS "will be the high
watermark for the year”. As a reminder, Caterpillar is seen as a
bellwether of the US as well as the global economy.
Techs are under pressure on the renewed concern of data privacy as
Facebook grilling is going on in full swing. Apart from Facebook, stocks
of Alphabet (Google parent) are also under stress because of higher
capex despite an upbeat report card. Subsequently, FANG shares were all
dragging the US stock market.
Asian stocks closed lower despite higher USD and higher oil.: Japan
-0.28%, Hong Kong -1.01%, China -0.35%, Taiwan -0.18%, Australia closed
for holiday, Singapore -0.46%, South Korea -0.59%, India -0.33%
(Sensex). Asian stocks traded negative across the board as the region
followed suit from the broad weakness in overnight US market amid rising
US yields, in which the Nasdaq 100 underperformed with losses of over 2%
and industrials led the DJIA to lower after Caterpillar suggested that
Q1 could be the apex for the year.
Tuesday's slide in US technology and industrial stocks weighed on Asian
markets, although losses in Japanese stocks were tempered on weakness in
the yen which is positive for exporters after USDJPY climbed to a new
2-1/4 month high. Nikkei-225 and KOSPI were lower with participants also
digesting earnings releases, while Takeda was among the worst performers
in Japan after the Co. further sweetened its offer in pursuit of Shire.
ASX and NZX were shut for ANZAC Day, while Shanghai and Hang Seng
conformed to the downbeat tone after the PBOC skipped open market
operations (OMO) which resulted to a net daily drain of CNY 150 bln,
However, the losses in the mainland were contained amid continued
chatter regarding further RRR cuts and as the previously announced cut
took effect from Wednesday.
China researcher noted that deflation in China is possible as soon as Q4
this year and added that further reductions in RRR are expected, while
there were also reports that a Chinese official sees large room for RRR
reductions and sees it lowered by between 600-800 bps in 3 years.
European equities were seeing a lackluster start following terrible
sentiment is seen Tuesday in the US and overnight Asia-Pacific market
amid higher bund yields.
*GBPUSD
<https://www.iforex.in/news/gbpusd-edged-down-thorny-issues-irish-border-despite-brexit-deal-clarification-uk-51337>STORY:
<https://www.iforex.in/news/gbp-stress-irish-border-issues-despite-hopes-soft-brexit-51339>*
*USDJPY
<https://www.iforex.in/news/usdjpy-front-foot-us-bond-yields-continue-soar-despite-slump-us-stocks-51349>STORY:
<https://www.iforex.in/news/us-stocks-under-stress-higher-bond-yields-and-mixed-earnings-51351>*
*EURUSD STORY:
<https://www.iforex.in/news/eurusd-slumped-amid-concern-dovish-draghi-thursday-and-broad-strength-us-dollar-51357>*
<https://2.bp.blogspot.com/-rtqs2V_lvN8/WuFrMN614pI/AAAAAAAAPwc/a5C2MCuC1WEQizzlPVMKi2rT9KEKIo2DgCLcBGAs/s1600/SGX-NF-PATTERN-17-04-2018.png>
*SGX-NF*
<https://4.bp.blogspot.com/-kCT7QHV4Y38/WuFsO-n5oCI/AAAAAAAAPwk/HefusguIDOU9dX8QsMWFatob78GTvXWGgCLcBGAs/s1600/BNF-FIBB-25-04-2018.png>
*BNF*
<https://3.bp.blogspot.com/-LxLUt4jtEns/WuFsbhYRT4I/AAAAAAAAPwo/XyhDpTdxMCIBYZa7gl5yRMIBwnf5A7vAQCLcBGAs/s1600/SPX-500-PATTERN-25-04-2018.png>
*SPX-500*
<https://2.bp.blogspot.com/-qf3goclD4rI/WuFsisKmT1I/AAAAAAAAPww/dTDpmligSAc3pDXcugTBZM8ofG99gikRwCLcBGAs/s1600/USDJPY-FIBB-25-04-2018.png>
*USDJPY*
--
Kindly email stock reports at
STOCKRESEARCHER@googlegroups.com
For sharing knowledge
-- NIFTYVIEWS.COM NOW A FREE OPEN SOURCE WEBSITE.
http://www.niftyviews.com/
Disclaimer :-
"The opinions expressed by the members on this board are based on
their individual experience and perceptions and to share information
with other members with the best of intentions to help fellow members
in investment decisions as equity investment is a risky venture.The administrator of
www.Niftyviews.com just provide a platform for the authors to express their opinion
and take no guarantee for the genuineness of the same."ANY member of this forum
doesnt prepare or publish any research report; or ii. provide research report; or
iii. make 'buy/sell/hold' recommendation; or iv. give price target;
---
You received this message because you are subscribed to the Google Groups "Niftyviews.com" group.
To unsubscribe from this group and stop receiving emails from it, send an email
to stockresearcher+unsubscr...@googlegroups.com.
For more options, visit https://groups.google.com/d/optout.