View on global markets – 12 October 2018

Global Stock Indices

In the previous session (after US opening), Jupiter transited in Scorpio. The market again corrected considerably with S&P 500 making a low of 2725 and bounced back to 2766 while DOW took support at 25000 and bounced back to 27350. NASDAQ observed support at 6900 and moved back to 7085.

Today, it is going to be an important day. If market closes positive today then next week shall again be positive. S&P500 can move up to 2850-2900.

Small quantity of long position is advised in global indices such as S&P500 @ 2760-2765 and @ 2740. Watch the market closely. Use S/L of 2720.

Similarly, you can accumulate long in DOW @ 25350 & @ 25150 with S/L 25000. One can long NASDAQ @ 7080 & 6950 with S/L 6900.

Risk-averse traders can buy call options instead of the futures contract.

Remain long in mining stocks (ABX, etc) as in coming days, a considerable uptrend is predicted.

Precious Metals

In the previous session, bullion went through a breakout. Gold made a high of 1227 while Silver made a high of 14.65. Today, slight profit booking is possible. Long Gold @ 1215 & @ 1205. In next week, Gold can cross 1250.

Long Silver @ 14.40. In next week, Silver may cross 15.

Crude Oil

In coming days, crude oil may breach 68 and further correct to 64. Around 72.50, short crude oil.

Currency Pairs

EURO (EUR/USD)

In next week, EUR/USD may cross 1.1700. It is advised to book 50% profit at CMP (1.1600).  Again buy back at lower level for next week.

POUND (GBP/USD)

In next week, GBP/USD may cross 1.3300. It is advised to book 50% profit at CMP (1.3232). Again buy back at lower level for next week.

YEN (USD/JPY)

USD/JPY can drop down to 111 in next week.

INDIAN RUPEE (USD/INR)

The top for USD/INR has been made. In some time, it may breach 70. If we try to see the picture of 2019, USD/INR may correct below 68.

DOLLAR INDEX

In next week, dollar index may breach 94.

Indian Stock Market

Today, trade with caution in Indian market. If today’s closing is positive then next week will also be bullish and you may continue holding long position.

With yesterday’s low as stop loss, long Nifty (10140) and Bank Nifty (24400).

Intraday perspective: market shall open positive and remain upward till 09.45 HRS IST. From 09.45 HRS to 11.00 HRS IST, profit booking is possible. From 11.00 HRS to 14.00 HRS IST, market is bullish.

From 14.00 HRS IST to closing, market may be positive but with high volatility.

TRADING RANGE:

• NIFTY FUT: 10200-10400
• BANK NIFTY FUT: 24500-25000

BUY AT LOWER LEVELS:

• IOC
• HINDPETRO
• BPCL
• DLF S/L 151 TGT 161-165
• BAJAJ ELECTRICAL
• YES BANK
• BANK OF BARODA S/L 91 TGT 96-100
• KOTAK BANK
• ICICI BANK
• HINDALCO
• HUL