Global EQUITY Indices
Financial markets seem to dance with FOMC announcement due in the next trading session. We are positive about equities.
Last Friday, we had mentioned that markets would make a bottom and then experience a strong bounce back. It was also mentioned that if market turns negative on Monday, it shall prove to be positive on Tuesday. Market has behaved as per our expectations. S&P500 MARCH contract made a low of 1983. However, high made was around 2018 and it closed at 2013. Today, equity market is more energetic. S&P500 MARCH FUTURE can cross 2030. Around 2030-2038, you can book 50% profit in long position. On Wednesday-Thursday, market is likely to move upward. It could shoot up to 2040-2070-2080.
Till Thursday’s closing, market is bullish. On Friday, correction may be seen at higher levels.
This may continue for next week.
But in next week, market shall be mixed to positive.
INDIAN STOCK MARKET
As per our expectation, Indian market traded in the last trading session Nifty made a low of 7580 and a high of 7680. Today as well, a dip shall be seen as buying opportunity.
In the next 2 days, it can cross 7800. On Friday, profit booking may be seen at higher level.
MONDAY’S TRADING RANGE:
- NIFTY FUT: 7620-7720
- BANK NIFTY: 16250-16700
BUY ON DIPS:
- TATA STEEL
- JSW STEEL
- LIC HOUSING
- RELIANCE CAPITAL
- YES BANK
- JET AIRWAYS
- SUN PHARMA
- MAHINDRA & MAHINDRA
- RELIANCE INDUSTRIES
Crude Oil traded exactly as per our expectation. We had already indicated a bounce back and maintained “buy on dips” strategy for oil.
Last day, crude oil took a U turn from low of 34.20 and built a high of 36.60.
Today as well, you can accumulate long position at lower levels.
In the next 2 days, it shall cross 39.00. Exact levels cannot be predicted but it may move up to 41-43.
However Friday onwards, Crude shall again be back to downside move, which will continue for next week.
US TREASURY BONDS
Bonds shall continue to drop till the FOMC announcement. However, post FOMC meeting, it may bounce back. If it shoots up to 2.25-2.28, you can book 50% profit.
EUR/USD shall decline for the day. It made a high of 1.1050 in the last trading session. Around 1.0950, you can accumulate 50% long position. And again around 1.0880, you can add 50% long position.
Wednesday-Thursday shall be more positive for EUR/USD – it can shoot up to 1.1100.
Gold first made a low of 1063 in the last trading session and then a high of 1074 followed by low of 1059. Currently, it is trading at 1064. Once again, bullion is ready to move up.
In Wednesday-Thursday, Gold can try to hit around 1100 while Silver shall try to reach 14.50.
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