Part of Newsletter: View on 13th May 2016

Global Equity Indices

Sun is moving to Taurus on 14th May 2016 – it shall bring negative indications for stock market. Next week onwards, market shall enter a bearish phase. This negative trend may continue with ups and downs till June 2016.

Investors shall stay away in this period and wait for last week of June 2016 to build long position.

Today, there may be intraday bounce back in US index.

Hold 50% short position and around 2070, you can again short S&P500 FUT for target 2000 or below.

PRECIOUS METALS

Bullion shall be mixed to positive for the day.

The next week is highly bullish for bullion. In next week, Gold may go up to 1305 while Silver may move up to 18.00 – and hence, you’re advised to carry long position for next week.

16th to 20th May 2016 is a positive period for bullion.

CRUDE OIL

Crude oil shall enter highly bearish phase from next week. With stop loss of 47.60-48.00, hold the short position in crude oil. It may drop to 39.00 by 25th of this month.

US Treasury Bonds

Treasury bonds shall make a top on 16th / 17th. Stay long in bonds and accumulate long position at a lower level.

INDIAN STOCK MARKET

Stay alert with the Indian market. It shall behave mixed.

By expiry, it may drop to 7600.

Positional traders shall use stop loss of 8100.

TRADING RANGE:

  • NIFTY MAY FUT: 7940-7850
  • BANK NIFTY FUT: 17100-16500

BUY ON DIPS:

  • SBI 175 PUT OPTION (MAY)
  • YES BANK 930 PUT OPTION (MAY)
  • RCF
  • CHAMBAL FERTILIZER
  • UNITED BREWERIES
  • NESTLE

SELL ON RISE:

  • TATA STEEL
  • TATA MOTORS
  • GLENMARK PHARMA
  • BANK OF MAHARASHTRA
  • PNB
  • BANK OF BARODA
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