Stock Indices and Crude Oil – 24 December 2018

Global Equity Indices

The week ahead is short because of Christmas holidays. UK, USA, HK markets shall be trading for half session. On 25th, it’ll be a global holiday on account of Christmas.

On 26th, US market shall remain opened while HK and UK shall remain closed. Due to the holiday season, volume will be limited.

Last Friday, US went through a partial government shutdown which led to a fall of 2.5% in the US market.

The American market has corrected 18% from its high. For today, the view isn’t clear. It is possible that either pressure or short covering may be observed.

DOW FUT made a low of 22291 while S&P500 and NASDAQ made lows of 2401 and 6015 in early Asian hours. RUSSELL has made a low of 1289. After making these lows, indices have recovered slightly. DOW, S&P500 and NASDAQ are currently trading around 22500, 2425 and 6082 while RUSSELL is currently trading around 1302.

2400 is support for S&P500. If this support level is breached then the next lower side is 2375. However, the market is ready for short covering (if short covering is not observed today then from Wednesday) and try to remain upward over the year-end. S&P500 can cross 2500. Use “buy at dips” strategy.

It is possible that the market closes negative today. Major reversal is possible from Wednesday. Avoid shorting at lower levels.

Indian Stock Market

Indian market shall be bearish for the day. It is advised to short indices at higher level. Market will open upward and then decline. From 12.15 to 13.15 HRS, a recovery is indicated. From 13.15 HRS, it shall again turn downward. Closing may be bearish.

From Wednesday, the market may enter positive mode.

Nifty has support at 10700 while Bank Nifty has support at 26900.


Energy Products: Crude Oil

Mars has changed position. Crude has support at 44.00. Here onwards, it is expected that oil shall move up and more of positivity shall be visible from Wednesday. In this week, oil may cross 50. Hold long with S/L 44.00 and add long at CMP. By mid-Jan 2019, oil may cross 60.00.

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financial astrologer mr. rajeev prakash

Mr. Rajeev Prakash