Market ready for reversal with French outcome

Global Equity Indices

It is the Rahu-Moon conjunction, today. Market may behave uncertain to bearish. In next week, it’s Mercury-Uranus conjunction which means market will be crucial for negativity. A fall of 5-10% is possible there onwards. This fall may continue with volatility till end of May 2017. This may be more observed in European and Chinese markets. On 8th May 2017, the outcome of French election will be available which may surprise the market and a big move is anticipated. As far as our calculations are concerned, this big move shall be on the negative side. Odds seem to be more in favor of Le Pen. However, if we go wrong by 1% and the market ends up being positive on Monday then still a fall will start from 9th or 10th May 2017, which will be amplified from 19th May 2017. S&P500 FUT can move up to 2402 at the most but on the lower side, it has doors open to 2300 or below. It is advised to enter into short position or buy put options.

In the last trading session, S&P500 FUT made a low of 2376. If 2376 is breached then you may add short position. European markets may witness a considerable fall and hence, you may build short position there as well.

You may buy put option in DAX for strike price of 12000 and HANG SENG for strike price of 23000.


Gold tested the support level of 1225 while Silver tested the level of 16.25. From today or next week, it is ready for an upward trend. If 1225 is breached then it can drop to 1205-1195. If 16.25 is breached then it can drop to 16.00. However, chances of such a fall are extremely limited.

By the end of month, we are anticipating Gold to cross 1300 and Silver to cross 18.60.



Today, it is the reversal day for oil. After 9th, rally shall start.

US Treasury Bonds Yield have touched a high of 2.36  (US T-10 yr) & 3.02 (US T-30 yr). It is advised to build short position at current market price and hold position for next week. A move of 10 to 15 percent is indicated by the end of month.


EUR/USD made a new high of 1.0980. In the next week, it can cross 1.100 and reach 1.1100. You are advised to book full profit in EUR/USD at current market price and around 1.0920, re-enter into long position.


Around 64.40, you may exit from long position and enter into short position with S/L 64.60 for target 64.00.


Dollar index may correct to 98.


The top for USD/JPY of 112.90 has been made. It is advised to short USD/JPY at higher levels. By the end of month, it’ll drop to 110.00 or lower.

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