21st August 2018: View on global markets

Global Equity Indices

US market closed flat to positive in the previous session. Planetary changes indicate the beginning of correction which may continue for next week. One can short S&P500 @ 2857-2860 with S/L 2873 for target 2830-2800.

Precious Metals

Gold is weak below 1203 while Silver is weak below 15.05. In a day or two, Gold may drop to 1181 or lower while Silver may drop to 14.50 or lower. Positional traders shall wait for lower levels in the next session to make long position in precious metals. More of weakness is possible in the next session.

Use S/L of 1205 for short position in Gold.

CURRENCY PAIRS

EURO (EUR/USD)

Short EUR/USD with S/L 1.1550 for target 1.1420.

POUND (GBP/USD)

Short GBP/USD at CMP with S/L 1.2850 for target 1.2730.

YEN (USD/JPY)

Long USD/JPY at lower level with S/L 109.50 for target 111.

INDIAN RUPEE (USD/INR)

Positional traders can buy 50% USD/INR @ 69.50-69.60 and rest at 69.20 with S/L 69 for target 72.00 in coming weeks.

DOLLAR INDEX

Long dollar index with S/L 95.15 for target 96.

Indian Stock Market

Indian market closed positive in the previous session. Nifty made a high of 11585 while Bank Nifty made a high of 28377. If Nifty sustains above 11585 then it can move up to 11630. It is weak below 11550. If Bank Nifty sustains above 28390 then it can move up to 28450. Nifty has major resistance at 11630 and support at 11500 while Bank Nifty has major resistance at 28450 and support at 27900.

As per astrology, market should start to weaken from today. On Thursday-Friday, this weakness may magnify. Weekly closing can be below 11400 if the planets show their effect in time.

If Nifty Spot breaches 11520 or Bank Nifty breaches 28200 then one can short with previous day’s high as stop loss. One can carry forward short for next week.

Trading Range:

• NIFTY FUT: 11590-11500
• BANK NIFTY: 28385-28100

Market may remain supportive from intraday perspective till 11.30 HRS IST. From 11.30 HRS IST, volatility shall increase. Market may enter corrective mode.

BUY ON DIPS:

• MPHASIS
• SIEMENS
• MCDOWELL
• JUBILANT FOOD
• VOLTAM
• TATA MOTORS
• L&T