Demonetization anniversary & today’s view

Today, it is the anniversary of demonetization.

Global Equity Indices

In the previous session, market went through the anticipated correction. S&P500 made a low of 2579. Today as well, the corrective mode may continue; the day is uncertain. However for tomorrow & day after tomorrow, some positive trend is possible.

On the lower side, S&P500 can drop to 2570-2565. Resistance for S&P500 lies at 2595 while support lies at 2562.

It is advised to book 50% profit in European markets and hold the rest position.

It is advised to book 50% profit in AEX @ 552 and hold the rest position. Short Hang Seng with S/L 29100.

Gold and Silver

Gold made a high of 1282 and low of 1275 in the previous session. As per astrology, trend is in favor of bullion. 1286 is a major hurdle for Gold. If the hurdle is crossed then Gold may go up to 1300.

Around 1282-1283, you may book profit and enter into short position with S/L 1286.

If 1286 is crossed then you may buy back your long position.

Industrial Metals

Short Copper @ 3.11-3.12.

CRUDE OIL

Crude oil shall be trading upward as per astrology. It may cross $60/bbl. 56.50 is a key support level while 57.85 is a major hurdle for oil.

EUR/USD

EUR/USD made a low of 1.1555 in the previous session. With S/L of 1.1550, hold long position in EUR/USD. It has the next hurdle at 1.1680.

USD/INR

USD/INR made a high of 65.15 in the previous session. It is advised to book 50% profit in USD/INR @ 65.10-65.20 and hold the rest position.

DOLLAR INDEX

Dollar index made a high of 95.00 in the previous session. It may drop to 94.50 or lower.

USD/JPY

113.50 is a support for USD/JPY while 114.50 is a hurdle. It is advised to short USD/JPY @ 114.50 and book profit @ 113.50.

US Treasury Bonds Yield

It is advised to book 50% profit in US 30 YR Treasury Bonds Yield @ 2.77 (CMP) and hold the rest position. Continue with the strategy of “sell at higher levels”.

Indian stock market

Indian market may be slightly uncertain for the day. In the closing hour, recovery is possible. Tomorrow and day after tomorrow, market may behave positive.

In the previous session, Nifty and Bank Nifty breached the support of 10400 and 25400.

Positional traders are advised to book 50% profit in short position of index.

PSU banks also went through a considerable fall. It is advised to book profit in PSU banks.

Nifty has support at 10300 and resistance at 10500.

Bank Nifty has support at 25200 and resistance at 25520.

Intraday traders shall buy only with the intention of “delivery”.

Disclaimer: View is for information only.

You can still Reserve your copy of Annual Letter @ $110 / 6,700 INR this week.