The fate of bullion, Indian market and S&P500

Stock Markets Around the globe

Last day as mentioned, DOW witnessed a correction and today Asian markets are experience correction.

S&P500 has dropped to 1,866 (JUN FUT).

S&P500 could drop at the most to 1,860.

You are advised to long S&P500 @ 1860-1866 and hold for target 1892-1896.

Overall, the market is supportive till 26^th May 2014.

And then up to 6^th June 2014, slightly bearish trend is expected.

After 6^th June 2014, sharp decline is expected in global stock indexes (including S&p500), which would make S&p500 trade below 1,800.

Around 1,892-1,896, you can make positional short position and hold for target 1,800 and below.

Today’s view

For the day and next day, US market shall be volatile to positive.

Asian market shall have positive opening next day.

At lower levels, you are advised to long indexes.

PRECIOUS METALS

Bullion could witness a fall with volatility any time.

From today, starts the time for a big fall in bullion (especially tomorrow).

On 29^th and 30^th May 2014, sharp correction shall be observed.

This fall shall continue till 2^nd week of June 2014.

In this fall, Silver could drop to 17.00 while Gold could drop to 1220.

DO NOT LONG BULLION TILL 2^ND WEEK OF JUNE 2014.

YOU ARE ADVISED TO SHORT GOLD AND SILVER AT HIGHER LEVEL

INDIAN STOCK MARKET

Today, Indian market shall be volatile to positive.

Overall, market shall trade in positive note till 26^th May 2014.

Nifty could again go up to 7,600.

Technically, NIFTY FUT is weak only below 7,170.

In short term, BANK NIFTY can go up to 15,600-15,900.

Technically, BANK NIFTY is weak only below 14,900.

Your strategy should be to “buy NIFTY & BANK NIFTY on dips”.

BUY:

–          GSPL

–          MRPL

–          M&M FINANCE

–          JAIN IRRIGATION

–          VIP INDUSTRIES

–          SESA STERLITE

–          TATA STEEL

–          FEDERAL BANK

–          YES BANK

–          BANK OF INDIA

–          BHEL

INTRA-DAY SELL:

–          SUN PHARMA