Global Equity Indices
Today, it is the non-farm payroll announcement. We anticipate its effect to be negative for the stock market. On 9th, Sun shall pass Mercury, which will create a negative sentiment for equities. The bullish cycle in stocks ended on 23rd April and it seems the current bearish cycle shall last until 20th June 2016.
S&P500 FUT can drop to —-. Positional traders shall hold the short position.
Intraday traders shall book 50% profit in S&p500 around —- and may build 50% short position around —-.
On 10th / 11th May, China may start witnessing an economic crisis that would eventually impact global equities.
TRADING RANGE & LEVELS : ONLY FOR MEMBERS
Bullion shall be volatile for the day.
There are two possible situations that may come up today. First – post non-farm-payroll announcement, price in bullion should boost up OR else it shall boost up after 21.00 HRS IST. 50% position can be bought before the announcement (06.00 PM IST) and 50% position can be bought at another dip (in 3 hours from the announcement: 06.00 – 09.00 PM IST).
Gold can move up to 1360 while Silver can move up to –.00 in coming days.
Copper shall continue in fall. Sell Copper on rise.
Copper and base metals can witness highly bearish trend on 9th-10th May 2016. This negativity may last with volatility until 20th June 2016.
Crude oil made a high of 46 and low of 44 in the previous trading session. In next week, a big fall is expected. This weakness shall continue with ups and downs till 20th June 2016
We had asked you to short EUR/USD. Last day, it made a low of 1.1386. You are advised to book profit around 1.14000 and long eur/usd with s/l 1.1340 for next week.
US TREASURY BONDS
Book 50% profit in Bonds at 1.75 & 2.60 (US 10 YR & US 30 YR respectively). Hold rest position for next week.
INDIAN STOCK MARKET
Indian market shall be volatile to bearish for the day.
In coming days, the stock market shall be negative. By MAY expiry, Nifty can drop to 7500.
– NIFTY MAY FUT: 7830-7690 – BANK NIFTY FUT: 16500-16100
– BANK NIFTY FUT: 16500-16100
SELL ON RISE:
– TATA STEEL
– RELIANCE CAPITAL
– SBI – BANK OF INDIA
– BANK OF INDIA
BUY ON DIPS:
– PARAJ INDUSTRIES
– BALRAMPUR CHINI
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