Global Stock Indices

As expected in the previous week, this week experienced sharp correction in equity indices. In our annual predictions book, we had clearly mentioned that sharp fall would be seen in various markets (including Indian market). S&P500 made a low of 2,032 from the high of 2,115. Similarly, DOW made a low of 17,600 from the high of 18,150.

For today, market may be somewhat supportive & a bit of recovery may be observed as market is oversold. After US mid-session, it shall again correct. This correction shall continue for next week as well.

Make short position in S&P500 around 2060-2070 and hold for next week. On Monday, we are expecting weak opening in Asian market. This weakness shall continue till 2^nd April 2015.

You can either short S&P500 or BUY PUT OPTION for target 2,040.

From next week, banking, power, infra related stocks shall be in positive mode & hence it is advisable to buy stocks in these domain at lower levels.

After 6^th April 2015, market shall enter a bullish phase.

After 14^th April 2015, market shall enter a one sided bullish sentiment.

At higher levels, you can build short position in European markets as well.

PRECIOUS METALS

We had clearly mentioned in the previous newsletter that from 14.30 HRS IST, bullion shall decline. After making a high of 1,220-Gold & 17.40-Silver; bullion started to decline after the mentioned time period.

Gold closed at 1,203 while Silver crossed at 17.05.

For today as well, bullion shall be bearish.

Only between 14.00 to 18.00 HRS IST, recovery may be observed. After 18.00 HRS IST, a fall may again be observed.

In next week, this fall shall continue.

By 2^nd or 3^rd April, a big correction is being expected.

After 6^th April 2015, bullion shall start to move bullish till 9^th April 2015.

Hold short position in bullion for next week.

INDUSTRIAL METALS

Copper made a high of 2.85 (along with other base metals)  by 14.30 HRS IST last day.

This shall follow the corrective trend in bullion.

In next week as well, it shall continue to drop along with price of gold & silver. 

ENERGY PRODUCTS

CRUDE OIL

Crude Oil has made a top by 14.30 HRS IST last day.

Oil shall also be in correction mode next week.

NATURAL GAS

NG shall trade in mix trend; recovery may be observed.

CURRENCIES

EURO

EUR/USD made a high of 1.100+ in the previous trading session. Now, it is ready to drop to 1.0700 by next week.

Sell EUR/USD on rise.

INDIAN RUPEE (USD/INR)

Book profit in USD/INR @ 62.80. At most, it can move up to 63.00. If 63.00 is observed, you can build short position in USD/INR.

DOLLAR INDEX

Dollar index shall move up now.

Last day, it made a low of 96.60.

In next week, dollar index can cross 100.00.

US 10 YR-TREASURY BOND

Book 50% profit in bonds @ 02.00. Hold rest 50% for next week.  It can go up to 2.05-2.10.

INDIAN STOCK MARKET

Indian market shall be in negative mode till 14.00 HRS IST & then recovery is indicated.

You are advised to build short position at closing as in next week, we are expecting a correction.

We had already mentioned in the previous week about current week’s bearish trend.

Maintain “sell on rise” for Indian equities.

TRADING RANGE:

-NIFTY (APR) FUT: 8,500-8,400

-BANK NIFTY: 18,200-17,600

BUY ON DIPS:

-JSPL

-PIPAVAV DEFENCE

-JSW ENERGY

-CIPLA

-HCL TECH

 TRADING RANGE :: ONLY FOR MEMBERS

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