Market bounces back as mentioned

Global Equity Indices

As mentioned in last day’s letter, market bounced back from 1805. Today, the earlier part of US session shall be positive and then decline. Next day as well, weakness may continue in equities. This weakness shall continue till Monday.

Today, retrograded Mercury is rising in east. This shall reduce the chances of heavy declines.

Market shall be in bullish pattern till 15th / 20th February 2016.

Today, S&P500 can bounce back to 1880-1905. In the fall ahead, it could retest 1840-1820 and bounce back.

After US mid-session, you can build short position around 1880-1905 with stop loss 1920-1925 for next week.

Today, Asian market shall behave positive. Next day, Asian market may have slightly weak opening.

PRECIOUS METALS

Gold and silver are again supportive for the day. Gold achieved our target of 1110 in the last trading session.

Next day, it may encounter a minor correction in value.

Copper shall again be positive for the day.

ENERGY PRODUCTS

CRUDE OIL

Crude Oil made a low of 27.65 last day. Today, positive trend is anticipated but next day, it may again decline.

On the higher side, it could move up to 29.50-30.00 today but next day, it’ll again drop.

NG

NG shall be positive for the day.

EURO

You are advised to book profit in short position of EUR/USD around 1.0870 and accumulate 50% long position around 1.0870. After 1-2 hour of US opening, EUR/USD shall start moving up and remain positive for the next day.

USD/INR

With stop loss of 68.20, short USD/INR for target 67.50. Technically if it sustains above 68.20, it may move up to 68.50.

DOLLAR INDEX

Dollar index shall be negative till US opening. It can drop down to 98.80 and then shall again be positive. It shall remain positive for next day.

US TREASURY BONDS

Bonds shall be trading downward till US opening. US 10 YEAR treasury can drop to 2.04-2.05 while US 30 YEAR treasury can drop to 2.85-2.90.

After early US session, it’ll move up and remain positive for next day. Around early US session, you can long bonds.

INDIAN STOCK MARKET

Gap up opening is expected for today (as mentioned in last day’s letter). After 12.30 HRS IST, market may turn uncertain.

Next day, market may be slightly negative.

 

TRADING RANGE:

  • NIFTY FUT: 7280-7400
  • BANK NIFTY: 14800-15300

INTRADAY BUY:

  • RELIANCE INFRA
  • KOTAK BANK
  • YES BANK
  • SUN PHARMA
  • SBI
  • CENTURY TEXTILE
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