Predictions for FOMC action turned true : what is next?

Global Equity Indices

Last day, S&P500 FUT made a high of 2169. Today, it is the last day of positivity for equities. Market shall be in ‘V’ shape for the day. S&P500 FUT can move up to 2180 or 2185. At closing hour, building short position is recommended. Here onwards, up-to 10th August 2016, market shall be in bearish trend.  Next day, a sharp correction is expected.

S&P500 SEPT FUT can drop to 2100 in the time ahead.

Asian market shall be weak for next day. European market may behave flat to positive for the day but next day onwards, European market shall also turn weak.

ALERT: Do not forget to make short position in equities (such as S&P500) or buy S&P VIX.

PRECIOUS METALS

Bullion behaved as per our view – it climbed up really well. Gold made a high of 1348 while Silver made a high of 20.35. Bullion shall be positive till next day or Monday. In this positive trend, GOLD DEC can move up to 1375 (+/- 5) while SILVER SEPT can move up to 21.50-22.50.

It is advised to book profit at higher level. Next turning point shall be indicated in next day’s letter.

MCX traders were advised to long GOLD AUG contract at 30700 and SILVER SEPT contract at 45800. Target for GOLD: 31800-32200, SILVER: 50000-52000.  Next day shall be bullish for bullion.

We will shortly send the instruction to book profit in Gold and Silver.

 

Copper

Copper and other base metals shall be in recovering mode for the day. Next day, it shall again decline.

CRUDE OIL

Crude oil shall be in recovering mode for the day. It shall again decline for next day. Positional bullish trend in crude oil shall start from 9th August 2016. This rally shall bring a new high for the year.

NG

NG is also in recovering mode for the day.

EURO

It was predicted that EUR/USD would move up after FOMC and it happened – EUR/USD made a high of 1.1075. 50% profit shall be booked around 1.1060-1.1065. And hold rest 50% position for target 1.1100 by next day.

USD/INR

USD/INR shall see a considerable bullish trend anytime in August 2016. It has potentials to cross 68.

DOLLAR INDEX

Dollar index declined after FOMC as per our expectation. It shall remain negative for next day as well.

US Treasury Bonds

You are advised to hold long position in treasury bonds. 50% position can be booked at current price and hold rest 50%.

Indian market shall be highly volatile for the day. Here onwards, a considerable declining trend may be observed. It is advisable to maintain “sell on rise” strategy.

Next day, the market may turn bearish. Today as well, market shall turn weak after 14.00 HRS IST.

Today, you should build STBT in Nifty and Bank Nifty.

TRADING RANGE:

NIFTY JUL FUT: 8670-8550

BANK NIFTY JUL: 19250-18800

BUY ON DIPS:

  • EICHER MOTORS
  • AIRTEL
  • ASIAN PAINTS
  • HINDALCO
  • RICO AUTO
  • BEL S/L 1204 TGT 1248
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