US markets had its biggest single day fall in last 3 months yesterday. Dow fell nearly 300 points, S&P down 1.5% on the fears that Trump is losing control on administration. Everyone from security staff to policy makers to business community is openly revolting against Trump now and that is not a good sign at all. Urban America is openly revolting the choice of middle class and rural America. New York today has become the nerve centre for all this.
The news of yesterday was the protest taken out by Zuckerberg and Satya Nadella. Added to that is the global terrorism into limelight again with terror attacks in Spain adding to the woes. Plus there is a news of US-South Korea joint military exercise which China and North Korea are opposing. Asia is reacting very badly with Hong Kong down more than 300 points and almost every market in Asia in red.
What will happen to NIFTY today?
Global reactions will mean a gap down opening to NIFTY at around 9850 levels and what happens from there needs to be seen. There are some people expecting buying to start at this level as its a bull market and any gap down is a good chance to buy. That might keep the NIFTY between 9850 and 9900 levels. And a close could be around the close of yesterday around 9900. That could be the best case scenario. But if that doesn’t happen we can test 9820 or go towards 9800 level today itself.
It’s a Friday and afternoon could present a confused picture. If there is selling then we could close near 9800 and that would be a disaster. If there is some short covering on the fall we could see some relief and we can think of a close above 9850 which will be a hope for next week in NIFTY’s journey back to re-conquering 10,000 mark.
In the company news, ICICI will be in focus today with the plans for an IPO for ICICI Lombard. After a successful ICICI pru life. ICICI is planning to list ICICI Lombard on bourses and the initial moves would be laid in the next few days. ICICI is planning for an IPO in late September or early October this year and by Diwali we might have ICICI Lombard trading on the exchanges.