What to expect in bullion on 20th May 2014

PRECIOUS METALS

Recovery is indicated in bullion for the day. However, your strategy should be to “short at higher levels”.

After US opening, gold and silver shall start to drop.

Sharp correction shall be observed from next day, which can continue till 10^th June 2014.  Any time in the said time frame, a sharp correction is expected in bullion. Gold may drop to 1,228-1,220 while Silver may drop below 18.00-17.00.

SELL GOLD WITH S/L 1317

SELL SILVER WITH S/L 20.50

#Hold the above position for target mentioned in the previous paragraph.

TRADING RANGE:

–          GOLD :  1,305-1,284

–          SILVER:19.75-19.05

INDIAN STOCK MARKET

Today, Indian market shall be volatile.

Positive trend shall be observed till Thursday.

TRADING RANGE:

n  NIFTY FUT: Technically strong above 7,290 can go up to 7,330-7,380; Weak below 7,210 can drop to 7,150-7,110

n  BANK NIFTY: Strong Above 15,330 for target 15,450+; Major support :14,900.

INTRA-DAY BUY:

–          BHEL

–          ONGC

–          IOC

–          IOB

–          YES BANK

–          RELIANCE CAPITAL

–          RELIANCE INFRA

–          RELIANCE POWER

–          ADANI ENTERPRISES

–          JAIN IRRIGATION

–          STATE BANK OF INDIA

–          HINDALCO

–          HPCL