GLOBAL EQUITY INDICES
Last day, equity markets experienced sharp correction owing to the issue in China. The negative trend in China dominated and directed flow in other markets including US, India and Europe.
Scorpio Moon shall end at 09.30 AM (IST). After this, we are expecting the market to recover. If recovery is sustained, closing may be positive but this is not a very sure thing to happen. If market closes negative today (after non-farm payroll announcement), Monday too could be impacted with a bearish trend.
After next Monday, equities are expected to turn bullish (post US Opening). This bullishness may continue till 25th January (with volatility).
For today, if market closes positive – MONDAY shall not be negative.
S&P500 FUT made a low of 1928. Use this level as stop loss with long position in S&P 500 FUT.
Gold made a high of 1113 last night while Silver made a high of 14.33. If trend in Gold and Silver moves up before non-farm payroll announcement then it’ll be negative post announcement.
And if the trend seems negative before non-farm payroll announcement, it shall turn positive post announcement.
Overall perspective: Next week, trend is positive for bullion. Use S/L of 1090 in GOLD, 13.90 in SILVER and accumulate long position in bullion at lower levels.
By February 2016, we are expecting Gold to reach 1160+ and Silver to reach 15.00+.
Next Monday onwards, positive trend is indicated for bullion.
Copper made a low of 2.00 in the last trading session. Base metal shall move up soon – next week trend shall be positive. Use last day’s lows as S/L in long position of base metals.
Crude Oil made a low of 32.30 in the last trading session. It made a high of 34.00. With S/L of 32, build long position in crude oil. Hold this position for next week.
Bullish trend is indicated in NG. It may hit 2.45 soon. A major astro-resistance lies at 2.47. Around 2.45, you can short NG with stop loss 2.50 for target 2.30.
If it sustains above 2.47, it can go up to 2.65.
Yet, the trend is negative today onwards.
EUR/USD made a high of 1.0890. Around 1.0880-1.0920, you can build short position in EUR/USD for target 1.0800.
You should book 50% profit in short position of USD/INR @ 66.50 and hold rest for next week.
Dollar index shall continue to be negative for the day and next week. Top has already been made.
It may drop to 96 in coming days.
US TREASURY BONDS
Hold short position in US 10 YR TREASURY BONDS for target 2.30 and build short position in US 30 YR TREASURY BONDS around 2.94 for target 3.01-3.03.
Indian market is expected to recover but we are not very sure. If market closes weak / negative today, Monday could be another negative day.
After Monday, market shall enter a “bull” cycle.
Long Nifty Fut with stop loss 7500 and Bank Nifty with stop loss 15900
TODAY’S TRADING RANGE:
- NIFTY FUT : 7540-7640
- BANK NIFTY: 16000-16400
BUY ON DIPS:
- ADANI ENTERPRISES S/L 75 TGT 88
- INDUSLND BANK S/L 921 TGT 948
- BANK OF INDIA S/L 103 TGT 114 – 116
- RELIANCE INFRA S/L 554 TGT 600
BUY (FOR 2 MONTHS):
- JUST DIAL
- L&T FINANCE
- JSW ENERGY
- STATE BANK OF INDIA @ 208-210
- VEDANTA S/L 82 TGT 78-76
- TATA STEEL S/L 255 TGT 240
- L&T S/L 1216 TGT 1190-1180
Important Announcement: Annual Letter 2016 was released yesterday and we have started dispatching the electronic / hard copy today onwards.