GLOBAL STOCK INDICES
S&P500 FUT started recovering from 2010. Around 2065, a correction was expected which didn’t actually happen. Weekly closing was around 2089.
2100 shall serve as a major resistance. If this resistance is crossed then it can technically go up to 2120.
On Monday, market shall be somewhat positive. However, closing shall be below the higher levels achieved in the trading session of Monday.
On Tuesday, market shall range-bound to negative.
On Wednesday, more of bearishness is expected. As it happens to be a week of holidays, it is difficult to estimate how bearish the market may behave. Still, you can assume that 2055-2045 could be retested by S&P500 FUT.
If in any condition – 2045 is breached, it can drop to 2010.
On 26th, it is a holiday on occasion of Thanksgiving day.
On 27th, market shall recover.
Venus shall move to Libra on 30th. This may bring a bullish pattern in equities. However 30th may start with a weakness followed by rapid recovery / bullish trend from 1st December.
The next week seems overall bullish for equities.
Blue-chip stocks could be bought as we are really bullish about them in month of December 2015.
FOLLOWING STOCKS ARE RECOMMENDED TO BUY:
MICROSOFT, ALPHABET, APPLE, FACEBOOK, ALIBABA, JP MORGAN, FORD, GE, PFIZER.
Pharmaceutical stocks (such as PFIZER) shall be more positive for short term from 23rd.
PRECIOUS METALS
Gold made a low of 1062 last week and Silver made a low of 13.95. Gold went up to 1087 while Silver went up to 14.40. Gold closed at 1077 while Silver closed at 14.13.
On Monday, recovery shall be seen from lower levels.
Tuesday shall be a positive day for precious metals. This positivity shall last till Wednesday’s US opening.
And then it shall be back to bearish trend till Thursday. On Friday, recovery is expected.
You can build short position on Wednesday at higher levels (1092-1095: GOLD & 14.50-14.75: SILVER) and cover short position by Friday. By Friday, Gold and Silver can retest lower levels of 1062 and 14.
On Friday, market will recover and closing may prove to be positive.
In next week, Venus shall enter Libra. Market shall enter bullish pattern.
By December 2015, we may see GOLD around 1180 and SILVER around 16.00.
Technically, if Gold breaks 1062, a sharp selling may be observed which may take it down to 1050-1045. However as per astrology, this level shall not be breached.
CRUDE OIL
Crude Oil made a low of 39.90 in the last week and a high of 41.00.
On Monday-Tuesday, positive trend is expected.
Wednesday’s US opening to Thursday shall be bearish for price of crude oil.
On Friday, positive trend is expected.
In next week, crude oil seems to be positive.
By first week of December, it shall cross $45/bbl.
EUR/USD
EUR/USD shall be positive on Monday and Tuesday.
On Wednesday after US opening, it shall decline.
From Friday, recovery is expected in EUR/USD.
In next week as well, EUR/USD shall remain in bullish pattern.
1.0600 is a strong level that we don’t expect to breach.
In first half of the week, it may move up to 1.0750-1.0800.
You can long EUR/USD on Monday.
TRADING RANGE:: ONLY FOR MEMBERS
We are going to start accepting PRE-ORDERS for ANNUAL LETTER 2016, which will contain medium / long term view on stocks, commodities, currencies and bonds for the year 2016. Wait for the next update >>
Indian market as expected saw the low of 7720 for Nifty Fut and then recovered to 7935. Nifty Fut closed at 7889 while BANK NIFTY closed at 17150 last weekend.
In this week, Monday could prove to be slightly uncertain still closing shall be positive.
On Tuesday, uncertain / bearish trend is expected.
On Wednesday, market shall remain closed.
On Thursday, weakness may be seen.
At the higher level, Nifty can go up to 7940.
If it sustains above 7950, more of bullish trend is expected.
On the lower side, Nifty Fut can drop to 7750-7720 by Thursday. On Friday, recovery shall be seen from lower levels and market shall again be positive.
In next week, market shall be bullish with volatility.
TRADING STRATEGY: Build short position in Nifty Fut @ 7940 and long Nifty Fut around 7720.
TRADING RANGE:
- NIFTY FUT: 7800-7940
- BANK NIFTY: 16800-17250
This week seems to be supportive for following stocks (BUY ON DIPS):
- ONGC
- ICICI BANK
- ARVIND MILLS
- YES BANK
- CENTURY TEXTILE
- GAIL
- TATA MOTORS
Positional traders can long pharmaceutical stocks such as SUN PHARMA, DISHMAN PHARMA, DR REDDY, TORRENT PHARMA for short term. In coming days, pharmaceutical sector shall see boost.
Leave a Reply