What to expect from RBI action today and global markets

Indian Stock Market

Indian market saw a low of 25000 for Bank Nifty and 10100 for Nifty. Today as well, trend is highly volatile owing to RBI policy. We are not expecting any major change with the interest rate.

It is advised to short at higher levels.

TRADING RANGE:

NIFTY FUT: 10200-10050

BANK NIFTY: 25400-24800

We are short in SBI @ 345, NIFTY @ 10500 and BANK NIFTY @ 26000.

Global Markets

We are short in S&P500 @ 2657 & DOW @ 24500.

In the previous session, US market closed negative. DOW DEC FUT made a low of 25182 while S&P500 DEC FUT and NASDAQ DEC FUT made low of 2627 and 6269.

The top for market has been made. In short term, this negativity may flourish with volatility.

A considerable fall is indicated on 8th or 11th December 2017. Overall, the period from 15th December to 15th January is negative.

S&P500 has support at 2620. If support is breached then sharp selling is possible. It is advised to short indices at higher levels.

One may book 50% profit in short position of NASDAQ and DOW.

Today, Moon is moving to Cancer which may increase volatility in the market. Intraday traders shall trade with caution.

Around 2640-2650, again short S&P500. If 2620 is breached, make short in S&P500. Positional traders shall remain “sell” on rise.

APPLE & AMAZON went through a sharp correction.

It is advised to book 50% profit in FTSE @ 7313.

It is advised to book 50% profit in HSI @ CMP (28850). At higher level, one may again short HSI.

INDUSTRIAL METALS

Copper and base metals went through a sharp correction as we have been mentioning in the past few newsletters.

Copper made a low of 2.94.

With volatility, this bearish flavor may continue. We are short in Copper @ 3.15.

Crude Oil

We are short in oil @ 59.50. Crude oil shall be in bearish trend for today and tomorrow. It may drop to 56.00.

EUR/USD

It is advised to long 50% EUR/USD @ 1.1830. Trend seems positive for tomorrow.

US Treasury Bonds Yield

You have already booked 50% profit in US 10 YR @ 2.34 and US 30 YR @ 2.73. One may hold the rest position and wait for higher levels to add short position.