GLOBAL STOCK INDICES

In the previous session, US market closed on a weak note. DOW and S&P500 made lows of 25946 and 2871.25 respectively. NASDAQ made a low of 7428.

50% profit booking has already been advised in short position. Positional traders may hold remaining position.  If S&P500 hits 2890 then they can make short position at 2890-2900.

Today, it is the deadline of trade war between US and China along with non-farm payroll announcement.

Today, a big move is expected; our view is that this move should be downward. Next Monday, market may start at lower levels. AEX has dropped to 540; it is advised to book 50% profit in short position here and again short if it moves above 550.

It is advised to short Hang Seng at higher level.

PRECIOUS METALS

Today, the non-farm payroll announcement may drive a considerable bull trend in precious metals. Gold may cross 1221 while Silver may cross 14.50. If this uptrend is seen today then on Monday, a profit booking is likely to happen and hence, one may book partial profit at higher levels. However, the next week is bullish.

If bullish trend is not observed today then too you can hold long position as in next week, a breakout is possible.

INDUSTRIAL METALS

We asked you to book 50% profit in Copper @ 2.66. Around 2.62, one can long 50% position with S/L 2.58. Other base metals may trade mixed.

ENERGY PRODUCTS

CRUDE OIL

As stated in the weekly letter, crude went through a correction. It made a low of 67.15 in the previous session; we mentioned 67 as the stop loss. Today, oil is going to trade positive. In next week, a considerable uptrend is possible. Around 67.40-67.50, one can long oil. In next week, it may hit 71-72.

NATURAL GAS

NG has a support at 2.75. With S/L of 2.75, hold long position in NG.

CURRENCY PAIRS

EURO (EUR/USD)

Add long in EUR/USD at dips (1.1580).  In coming days, it may hit 1.18000.

POUND (GBP/USD)

Add long in GBP/USD at lower level.

YEN (USD/JPY)

We asked you to book 50% profit in USD/JPY. Above 111, one can again short USD/JPY.

INDIAN RUPEE (USD/INR)

A profit booking may be observed in USD/INR. We asked you to short USD/INR @ 71.92 (SPOT) with S/L 72.30 for target 71.50-71.00.

DOLLAR INDEX

Short dollar index at higher level.

TREASURY BONDS

US 30 Year T-Bond:
We asked you to long US 30 Y T-Bond @ 143 in the previous session. Hold long for target 148.

Yield:

Book partial profit in short position at 3.05 (US 30 Y YIELD) & 2.87 (US 10 Y YIELD).

INDIAN STOCK MARKET

Indian market may open slightly positive followed by profit booking.  Market shall trade mixed to negative till 13.20 HRS IST. From 13.20 to 14.40 HRS IST, positive trend is expected. From 14.40 HRS IST to closing, profit booking is possible.

Nifty has resistance at 11620 and support at 11432 while Bank Nifty has resistance at 27800 and support at 27300.

Next Monday, market can behave negative.

BUY ON DIPS:

• JAIN IRRIGATION
• HEXAWARE
• VEDANTA
• AXIS BANK
• JK PAPER
• WOCKHARDT