SGX Nifty Futures
LTP 10,940.00 +26.00 +0.24% High 11,041.50 Low 11,001.00 (Change Vs Today’s Nifty Futures (NSE) Closing)
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Nifty Futures 2nd Nov 2016
Nifty Futures / SGX Nifty today was trading within a range along expected lines after moving higher during the day Nifty closed flat. As per our analysis we have been saying that we do not expect Nifty Futures to move much higher from here and we have also said that the fall will also be with their fair share of pullbacks. So markets are moving as per expected lines. We are once again reiterating the point that pullbacks will come and go but overall the trend will remain down with a negative bias and we do not see prices sustaining on the higher side. On the downside as we have mentioned last time a important support of 8250 is in place and till that support area is touched we do not expect any sharp movements and even if sharp movements do take place they will be confined to the trading range as told.
The important event that is coming up is the FOMC meeting on 2nd Nov 2016 so we just have one more trading day to go before we know if the FED moves or does not move and most market participants are focused on what FED will do but we do not think that whatever the FED will do will on 2nd Nov will have much impact. The first scenario is that FED will hike rates by 0.25 Bps and surely the market is not prepared for that and hence we will see a sharp risk off trade globally. The second scenario is that FED will guide strongly for a Dec rate hike so the market will not wait for Dec but will start preparing for the rise in interest rates and still we see a risk off not only in the Indian stock markets but globally.
The dollar index is indicating that smart money has been buying the green back since the last FOMC meeting and when we look at multiple leading indicators which are based on Dollar Index, Gold and Crude we see that the smart money is expecting either a rate hike this time or they are expecting a very strong guidance for Dec 2016 rate hike of 0.25 bps so please keep that in mind.
We see too many head winds in the coming time and we do not see stocks as a asset class doing very well in the time to come. MSL some big institutional guys are buying for some key persons who are very well known to the management of the company. We also pick up information that some big corporate announcement is in the making soon so do keep that stock on your radar.
Good Trading To You!