Holiday Market Analysis: Trading Strategies for Christmas Eve

Team AstroDunia wishes you a Merry Christmas and a Happy New Year.

Ø GLOBAL STOCK INDICES

Today, there is a Holiday market in some markets and a half day in the USA owing to Christmas Eve. You are advised to cover your long positions in the stock market as from Thursday, we expect a fall in the US market, which would last till Holiday.

When the S&P500 trades around 1,820-1,830, you could short 50%. In the next week, 1,775 could be seen for the S&P500.

Between Thursday and Friday, major markets shall fall. And as a result, in next week, a sharp declining trend is expected.

This “negative” trend could last till 6^th / 9^th January 2014.

You can short 50% DOW FUT @16,200-16,300 for target 15,900 & below.

It is also recommended to cover long position in Hang Seng Index and then short 50% at higher levels today.

TODAY’S TRADING RANGE:

Ø   DOW(FUT): 16,200-16,270

Ø  S&P500 (FUT): 1,818-1,825-1,830

Ø  NASDAQ(FUT):3,540-3,575

Ø  FTSE (FUT): 6,600-6,655

Ø  CAC40(FUT):4,205-4,245

Ø  DAX (FUT):9,440-9,540

Ø  HANG SENG (FUT):22,950-23,180

Ø  NIFTY(SPOT): 6,250-6,340

Ø PRECIOUS METALS

It shall be a bit supportive day for precious metals. However, from Thursday, a U-turn shall be observed in precious metals. If Gold comes up around 1,220 while Silver comes up around 19.75-20.00, you short 50% of the desired quantity.

You are also recommended to cover long positions today itself. From this Thursday (US Time) to next week, a big fall could be seen in precious metals.

Intra-day:

Precious metals shall be volatile till 16.00 HRS (IST). From then, recovery shall start.

From the US opening, a strong bounce back could be seen.

TODAY’S TRADING RANGE:

Ø  GOLD:1,190-1,224

Ø  SILVER: 19.10-19.60-19.75

Owing to winter holidays (X-Mas and New Year), we are not able to see a big move in bullion.

Ø INDUSTRIAL METALS

Copper shall remain volatile. Could turn slightly positive.

Industrial metals could also experience correction next week. And hence, you are advised to cover your long position today.

TODAY’S TRADING RANGE:

Ø  COPPER: 3.29-3.32

Ø ENERGY PRODUCTS

Sell Crude Oil at higher levels.

By 2^nd Jan 2014, a big correction is indicated in Crude Oil.

On a closing basis, your stop loss should be $100/bbl (for a short position).

NG shall have a volatile to-mix trend but slightly positive.

TRADING RANGE:

Ø  CRUDE OIL: 99.40-98.20 & BELOW

Ø  NG:4.50-4.57

Ø CURRENCIES

EUR/USD shall trade on both sides.

At higher levels, you could short EUR/USD for Thursday.

You are advised to cover a long position in USD/INR.

It should be noted that the Dollar Index will experience positivity from Thursday. And hence, you are advised to make a long position in DOLLAR INDEX at lower levels.

TRADING RANGE:

Ø  EUR/USD: 1.3640-1.3740

Ø  USD/INR(SPOT): 61.50-62.25

Ø  DOLLAR INDEX: 80.80-80.30

Ø INDIAN STOCK MARKET

Today, the Indian stock market shall be volatile to positive.

TODAY’S TRADING RANGE:

Ø  NIFTY (FUT):6,280-6,340

BUY ON DIPS:

–          DLF

–          CENTURY TEXTILE

–          RANBAXY

–          DLF

–          RELIANCE INFRA

–          BHEL

–          ADANI ENTERPRISES

SELL:

–          TITAN

–          JINDAL STEEL & POWER

12/24/2013 7:58:50 AM