21 December 2020: X-mas Gift

Moon shall be in Aquarius, Pisces and Aries for the week. Today, Jupiter and Saturn’s great conjunction will happen along with Venus in conjuncts with Uranus. The last time Jupiter and Saturn came so close was back in 1622-1623.

On 23^rd, it’ll be Mars square Pluto. The major reversal of stock market is either today or on 23^rd. This reversal will continue till 14^th January 2021 (+/- 2 days).

Global Equity Indices

The trend shall be mixed for the day. Either today or Wednesday is going to be a downward session. Thursday is again negative. Markets shall remain closed on Friday owing to X-MAS.

In the next week (28^th December 2020), Asian market may open lower.

On 24^th, Mars will enter Aries. On 30^th, Pluto will enter Capricorn. The transition of Pluto in Capricorn is indication of a major downtrend. The previous time Pluto was in Capricorn was on 25^th February 2020 and remained there until 27^th June 2020. On 25^th April, it went retrograde. From 25^th February to 24^th April, market went through a major drop and remained overall bearish. After 25^th, market kept moving higher. On 28^th June 2020, when Pluto entered Sagittarius, one sided rally started in stocks which is still running.

The transition of Pluto in Capricorn will again lead a sizable drop. On Friday, DOW closed at 30200, NASDAQ closed at 12749 and S&P500 closed at 3716 while RUSSELL closed at 1985.

Stimulus has been approved in US which has led to profit booking in the stock market. S&P500 made a low of 3697, NASDAQ made a low of 12725 and DOW made a low of 30079 while RUSELL made a low of 1949.

S&P500 has resistance at 3731 and support at 3680.

DOW has resistance at 30500 and support at 29800.

NASDAQ has resistance at 12850 and support at 12600.

From this week, our strategy will be to short indices at higher levels.

Parts of Europe are in strict lockdown measures. No deal in BR-EXIT is adding to the fear.

Today, TSLA will get indexed in S&P500. It closed at 695 in the previous session. Today onwards, a correction may start. It has resistance at 700-720 (if crossed then it may move towards 770). Support lies at 650(if breached then it may move below 600).

S&P500 can drop down to 3550 anytime soon.

Precious Metals

View is bullish on Gold and Silver from a medium term perspective. Silver is expected to move in a highly bullish trend till April 2021. Gold is expected to remain bullish till July 2021. These are going to be historic moves.

In short term, we are bullish on Gold and Silver until 14^th January 2021. Remain long in bullion at lower levels.

Owing to the stimulus announcement, Gold jumped to high of 1905 while Silver made a high of 26.91 in today’s Asian session. Last Friday, Gold closed at 1887 while Silver closed at 26.00.

Gold has support at 1878 and resistance at 1902. Silver has support at 25.80 and resistance at 27.

It is advised to book partial profit in long position of Gold and Silver at CMP.

Bitcoin

BTC/USD has support at 22000 and resistance at 24300-24600. It is advised to book partial profit at 23700. We have been long in BTC/USD from 6500.

US Treasury Bonds

Hold long position in US 30 Y T-Bond with S/L 170.00.  Around 173.50, book 50% profit. Hold remaining position for target 175.

Indian Market

This week might have a major trend reversal either today or on Wednesday. In next few weeks, a sudden drop may be visible. Hence, it is advised to be cautious.

Nifty (Spot) has resistance at 13800 and Bank Nifty (Spot) has resistance at 31200. If these levels are not crossed then Nifty would be heading to 13200 or below & Bank Nifty would be heading to 29800 or below.

For today, trend may remain mixed. Either today or Wednesday, a drop is indicated. On Thursday, market may trade mixed to downward. On Friday, market shall remain closed on account of Christmas.

Next Monday, a gap down opening is possible.

Intraday perspective: market may trade mixed for the first half of session. In the second half, downward move may be observed.

BUY AT DIPS:

• SCI
• INDIA HOTEL
• JK PAPER

SELL AT HIGHER LEVELS:

• MARUTI
• TATA MOTORS
• SBI