INDIAN STOCK MARKET
Our prediction on the Indian union budget proved to be accurate. The common man is still not benefited. The government has technically created a dilemma for the average citizen of India who is caught in several numbers but no effect. Education and healthcare definitely had some good news in the union budget. The government has extensively supported the corporate sector with its Corporate taxes dropping from 30% to 25%.
One of the major decision was the reintroduction of long-term capital gains @ 10%.
In our Annual Letter 2018 as well, we had already shared this view on the union budget. The prediction proved to be 100% accurate.
We had mentioned in yesterday’s daily newsletter that despite heavy correction, the market still sustained uptrend till 14.20 HRS IST and witnessed a correction in the closing hour. This view was made public and turned out to be right. Nifty made a low of 10880 in the previous session while Bank Nifty made a low of 27070 followed by high of 11139 for Nifty and 27650 for Bank Nifty.
In the closing hour, the market again tanked down.
The trend is uncertain till Monday.
Tuesday onwards, it shall be back to positive trend.
It is advised to wait for Monday to accumulate positional long.
Today, market shall open gap down and recover from 09.40 HRS IST. From 09.40 to 14.00 HRS IST, overall mixed to positive trend is indicated. After 14.00 HRS IST, some profit booking is possible.
- NIFTY FUT: 10890-11100
- BANK NIFTY FUT: 27050-27500
Weakness may continue in PSU banking sector.
BUY ON DIPS:
Global Equity Indices
The market traded as per our prediction. Today as well, it shall continue in some uncertainty. In the first half, up move is possible. In the second half, profit booking is possible. On Monday as well, trend shall be slightly mixed. On Tuesday, Venus is changing position; wherein it’ll move to positive mode. S&P500 made a low of 2808 and high of 2835 while DOW made a low of 25980 and high of 26230 and NASDAQ breached 6900 and retested 6960.
It was advised to buy indices at lower levels; and then a signal was issued to book 50% profit. Now, you may hold 50% long position and add position in DOW @ 26000, S&P500 @ 2805, NASDAQ @ 6900. Intraday traders may book 50% profit in DOW @ 26250-26300, S&P500 @ 2830-2840, NASDAQ @ 6960-6980.
Hold rest 50% for next week.
In the next week, S&P500 may cross 2880 while DOW may cross 26500 and NASDAQ may cross 7000. In European and Asian markets as well, you may buy position at the lower level. Buy AEX with S/L 550.
It is also the non-farm payroll announcement; we see the market moving up in the first half and may experience profit booking in closing hour.
Gold made a high of 1353 in the previous session while Silver made a high of 17.25. Overall, bullion is bullish for next week. Owing to non-farm payroll announcement due today, it may or may not move up to that expectation. It is still advised to buy precious metals at lower levels (Gold with S/L 1330 and Silver @ 17.00 with S/L 16.80).
You may book profit in Gold @ 1355-1358 and Silver @ 17.30-17.35. If Gold crosses 1358 then you may add long position.
Next week is bullish for Gold and Silver. It is advised to buy precious metals on dips.