Global Equity Indices
As expected, US market declined towards the closing. S&P500 March contract saw a high of 2673 and then closed around 2652. DOW March contract made a low of 24540 while NASDAQ made a low of 6400. The all-time high of S&P500 March contract is 2673. After US closing, Sun is changing position (i.e. moving to Sagittarius) and shall remain there until 15th January 2018. Sun-Saturn conjunction will be formed. On 20th December, Venus shall enter Sagittarius and form a conjunction with Sun & Saturn.
As per astrology, the market may prove to be highly volatile. A sharp correction is then indicated.
If this correction happens then the market may go through a fall of 10%.
The upper limit for S&P500 (SPOT) is 2675/2690. Today, a recovery is indicated in the stock market in which S&P500 may retest 2665-2672.
Use S/L of 2640 for intraday buying in S&P500.
It is advised to short index at higher levels for next week.
European markets have been through a reasonable correction and hence it is advised to book 50% profit in European indexes at the current market price and again build a short position if any recovery is seen; hold the short for next week.
Around 28850, book 50% profit in Hang_Seng Index. Around 29150, you may again short 50% HSI and hold for next week as we are anticipating a correction.
INDIAN STOCK MARKET
Indian market saw a low of 10160 for Nifty Future and 24900 for Bank Nifty.
Owing to Gujrat exit polls, a gap up opening is likely to happen. However, after 10/11 HRS IST, market shall suddenly start to decline. There onwards till 15.00 HRS IST, trend shall be mixed.
In the last 1 hour, a sudden breakdown is possible.
It is advised to avoid a trap at higher levels.
At the higher level, you may buy put options in Nifty and Bank Nifty. If the market goes through sudden breakdown around closing, you should book 50% profit.
In next week, the result of Gujrat and Himachal election is due on 18th. The market would be observing high volatility. However, as per astrology, exit polls may have overestimated the number of seats for BJP but yet the government would be formed on the base of BJP. The exit polls anticipate 135 seats victorious for BJP but our assessment indicates 110 or lower number of seats in favor of BJP.
On Monday, it is the new moon.
Around 18th to 20th, a fall is being predicted.
ALERT: Carry forward a small quantity of short position or put options for next week.
NIFTY FUT: 10450-10200
BANK NIFTY: 25400-25100
We advised buying oil @ 56.20 after covering the short position. Today, it may hit 57.50-58.00 as the trend seems to be positive. At a higher level, you may book profit in the long position and build the short position. In next week, a sharp fall is indicated.