Global Equity Indices
Moon has moved to Capricorn and it shall form a conjunction with Ketu; this may increase the volatility in the market. It is advised to stay short in the market. In the next week, a correction is possible.
On 23rd, Mercury will turn direct; around 26th-27th December, a decline is possible.
S&P500 (SPOT) has a major resistance at 2700 which it hasn’t crossed in the recent uptrend. We made you short in S&P500 @ 2695; 50% profit in this short was booked @ 2683. Hold rest short position and again short S&P500 @ 2695-2698.
After the tax bill was passed by Senate, profit booking has been observed in equities. S&P500 made a low of 2676.
European market also witnessed profit booking. This uncertainty may continue for some more time ahead. Asian and European markets are set to a corrective mode for the next week as well. At the higher level, you may short European and Asian indices.
50% profit book in the short position is advised in European markets (CAC, DAX) and AEX.
One may short Hang Seng Index as well.
TRADING RANGE: * MARCH Fut
- DOW (FUT): 24850-24650
- S&P 500 (FUT): 2694-2675
- NASDAQ (FUT): 6520-6470
- FTSE (FUT): 7510-7440
- CAC( JAN FUT): 5410-5300
- DAX(DEC FUT): 13300-12900
- AEX(JAN FUT): 554-540
- HANG SENG (DEC FUT): 29400-29050
PRECIOUS METALS
Bullion shall be overall positive for the day. If Gold crosses 1273 then it can move up to 1288. Silver touched 16.30 in the previous session and is looking forward to the levels of 16.50-16.60.
In the coming days, bullion is bullish.
Around US opening, a correction is possible. At the correction, you may be able to buy precious metals on dips.
TRADING RANGE:
-GOLD FEB: 1275-1262
-SILVER MARCH: 16.40-16.10
INDUSTRIAL METALS
Copper made a high of 3.20 in the previous session. One may short Copper and other base metals at higher levels. In the next week, a sharp correction is possible.
TRADING RANGE:
COPPER MAR: 3.21-3.15
ENERGY PRODUCTS
CRUDE OIL
Crude oil shall start to correct from today. In next week (particularly 26-27th December), fall is indicated. It is advised to short oil at the higher level. It may breach $55/bbl.
NG
NG made a low of 2.61 in the previous session. 2.60 is a major support for NG. If 2.60 is not breached then it may move up to 2.75.
TRADING RANGE:
CRUDE OIL JAN: 58.50-57.00
NG JAN: 2.62-2.75
CURRENCY PAIRS
EUR/USD
It is advised to short 50% EUR/USD @ 1.1880 for target 1.1800-1.1750.
USD/INR
With S/L of 63.80, long USD/INR @ 63.90-64.00 for target 64.30-64.50.
DOLLAR INDEX
The dollar index has support at 92.50. Here onwards, it may move up to 93.30-93.50.
USD/JPY
Short USD/JPY @ 113.50.
TRADING RANGE:
EUR/USD: 1.1890-1.1800
USD/INR (SPOT) : 64.10-64.50
DOLLAR INDEX: 92.80-93.30
USD/JPY: 113.50-112.80
US Treasury Bonds Yield
The top for yield has been made in the previous session. Anytime by 14th January, a sharp correction is indicated. US 10 YR can drop to 2.10 while US 30 YR can drop to 2.50.
TRADING RANGE:
US 10 YR Treasury: 2.50-2.42
US 30 YR Treasury: 2.88-2.82
Bitcoins
Bitcoin went through a sharp correction in the previous session. Here onwards, it will try to recover. It can shoot up to $20,000. Overall, the trend is positive until 7th January 2017.
INDIAN STOCK MARKET
Moon is in conjunction with Ketu for today and tomorrow; this may give rise to uncertainty. Intraday traders shall be alert as stop-loss might not make sense. The day shall be volatile – a mix of ups and downs.
The opening can be slightly negative. The market can go through a sudden fall. Nifty Fut and Bank Nifty Fut have resistance at 10530 and 26000.
PSU banking stocks went through a sharp correction in the previous session. Today as well, this correction may continue. BANK OF INDIA, BANK OF BARODA, PNB, UNITED BANK OF INDIA, DENA BANK may continue through the correction.
TRADING RANGE:
NIFTY FUT: 10500-10380
BANK NIFTY: 25800-25500
For next 2 days, market shall be uncertain.
BUY ON DIPS:
- PIDILITE
- ARVIND
- CENTURY TEXTILE
- INDO COUNT
SELL AT HIGHER LEVELS
- TATA STEEL
Authors: Rajeev Agarwal & Shashi Prakash Agarwal | Sent @ Thursday, December 21, 2017| 08.12 HRS (IST = GMT + 5.30 HRS)
The Annual Letter 2018 will be released shortly. Order your copy ASAP.
Disclaimer: The view contained in this report is for educational purpose only. The decision to trade remains with investors and hence, neither MADPL nor any of its associate shall be liable for any losses/profits gained.
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