Be prepared for the FOMC action

Global Equity Indices

Today, it is the new moon along with Mars-Ketu conjunction. US market closed positive in the last session in which S&P500 made a high of 2796 and DOW crossed 25400 while NASDAQ crossed 7250.

Prior to FOMC, market will appear positive. S&P500 may cross 2800. 2812 is a strong resistance if crossed will lead S&P500 to 2820. 2775 is a support if breached will lead to further decline.

According to astrology, post FOMC, the market is set to decline. This correction may continue until Monday’s morning. On Friday – post-UK opening, recovery from the lower level is possible.

Strategy: One can build short position before FOMC. On Friday’s Asian hours, cover the short position. Intraday traders can buy around UK opening (Friday) and again make the short position at a higher level and hold for Monday.

Positional traders can book 50% profit on Friday at a lower level and again short 50% at Friday’s closing. This short position has to be covered on Monday.

After FOMC, market will go through a considerable move.

In Asian markets, one can build short position at closing.

PRECIOUS METALS

Gold made a high of 1305 while Silver made a high of 16.95 in the previous session. Before FOMC action, a short covering is indicated. Gold can cross 1310. Hold long position in Gold with S/L 1291; you can add long position in Gold @ 1295 and Silver @ 16.70 with S/L 16.45.

You should cover long position before FOMC action. Post FOMC, we are expecting a decline in Gold and Silver.

In next session, Gold and Silver appear to be bearish. Gold can drop to 1280 while Silver can drop to 16.40.

On Friday, trend shall again be favorable for precious metals.

MCX traders shall book profit in long position & make short in Gold and Silver at today’s closing hour.

CRUDE OIL

Crude made a high of 66.60 in the previous session. Today, trend seems upward. It can move up to 67. Hold long position with S/L 65. In next session, crude oil may decline. Make short position @ 67.

NG

One can long NG @ 2.87-2.88 with S/L 2.82. NG shall be positive till next session. It can cross 3.

EUR/USD

EUR/USD made a high of 1.1810 in the previous session. Buy EUR/USD at lower level with S/L 1.1690. Post FOMC, EUR/USD will move up.

USD/INR

Buy USD/INR at lower level. In next session as well, USD/INR shall be positive.

DOLLAR INDEX

You can short dollar index at higher level today. Post FOMC, it may decline and remain weak in the next session.

GBP/USD

GBP/USD made a high of 1.3420 in the previous session. It is advised to long GBP/USD at a lower level today with S/L 1.3290 for target 1.3450.

USD/JPY

Short USD/JPY at higher level.

US Treasury Bonds & Yield

Bonds (US 30 YR): With S/L of 141, long US 30 Y T-Bond at lower level. Post FOMC, it shall move up.

Yield: Hold long position in yield for target 3.15 (US 30 YR) and 3.00 (US 10 YR).

Indian Stock Market

Indian market remained positive in the previous session. Today as well, trend is overall positive. From next session to Monday, some decline is possible. One can cover long position today and enter into short position at higher level.

Intraday perspective: market shall be positive till 11.15 HRS IST. From 11.15 to 13.30 HRS, profit booking is possible. From 13.30 to 14.30 HRS, market shall again be positive. In the closing hour, profit booking is indicated.

Next day, market shall decline. Nifty has support at 10760 and resistance at 10880 while Bank Nifty has support at 26300 and resistance at 26800.

Today, Bank Nifty shall appear more positive than Nifty.

You were advised to long PSU Banking stocks (IDBI, SBI, BANK OF INDIA, FEDERAL BANK, PNB) on Monday. Do not forget to book profit in PSU Banking stocks at higher levels today.

INTRADAY BUY:

• SUN PHARMA S/L 535 TGT 560
• IOC S/L 172 TGT 180
• EIL S/L 135 TGT 141
• ADANI ENTERPRISES S/L 125 TGT 135
• POWER GRID S/L 193 TGT 201

SELL AT HIGHER LEVEL:

• RELIANCE @ 988-992 S/L 1011 TGT 960-930 (IN 2-3 DAYS)