Part of today’s letter: view on stocks, bonds, currencies and bullion

Global Stock Indices

Today, market is closed in Hong Kong. On 4th July, it is a holiday in US market owing to the US Independence day.

Market shall behave weak for the day. US may close at lows. S&P500 FUT can move down to ….. Around……..buy 50% S&P500 FUT and rest at closing hour.

In next week, market shall remain bullish until 6th July 2016. S&P500 FUT can move up to ……..by then.

You are advised to long stock indices at today’s closing hour.

Precious Metals

In the last daily letter, we had mentioned that 1st July / Friday would be bullish. Today, Gold can go up to ………while Silver can go up to ……….

Book 50% profit in Gold around ….. and Silver around ….. For rest 50%, wait for closing level.

In next week, bullion may trade negative (between 4th and 6th July 2016.

Yet, silver shall be supportive. Buy 50% silver and short 50% gold for next week.

CRUDE OIL

Crude oil shall be in corrective mode for the day. Oil isn’t expected to cross $50/bbl. It can drop to $40/bbl by 20th July 2016.

NG

NG shall follow the trend in crude oil. 3.00 is a major hurdle for NG. On the lower side, NG can drop to 2.65 by 20th July 2016.

EURO

EUR/USD shall move up for the day. Buy EUR/USD at lower levels.

USD/INR

Buy USD/INR at lower level.

DOLLAR INDEX

Dollar index shall drop for the day.

US Treasury Bonds

Treasury bonds shall behave highly bullish for the day. Last day, we asked you to build long position in bonds. It is advisable to hold position in bonds. By closing hour, it can go to higher levels (the top made around 24th June 2016 may be re-tested).

It is advisable to book profit in US Treasury Bonds.

INDIAN STOCK MARKET

Indian market shall have slightly weak opening. From 10.30 to 14.30 HRS IST, trend shall turn from volatility to positivity.  It should be noted that the closing hour may bring profit booking.

It is advisable to long Nifty and Bank Nifty at closing hour as next week seems to be bullish for Indian market.

TRADING RANGE:

NIFTY JUL FUT: 8340-8280

BANK JUL NIFTY: 18200-17800

BUY ON DIPS (HOLD FOR NEXT WEEK):

–          TATA STEEL

–          TATA MOTORS

–          JSW STEEL

–          AXIS BANK

–          HCL INFO

–          CENTURY TEXTILE

–          RELIANCE INFRA

–          YES BANK

–          IGL

Today, it is the listing of Mahanagar gas – book profit in the long position.

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