View on Stocks and Commodities for 8th June 2015

GLOBAL STOCK INDICES

Mixed to negative week is indicated for 8th – 12th June 2015.

On Monday, negative trend is expected. On Tuesday-Wednesday, some recovery is expected. On Thursday, correction may be seen from upper levels.

A sharp decline is expected on Friday.

Strategy: Sell stock indices on rise.

Next week is very crucial for stock indices. From 17th, a sharp decline is expected.

In this week, S&P500 shall trade between 2080-2100. It can go up to 2120 at the most. It is advisable to make short position at higher level.

PRECIOUS METALS

Gold made a low of 1162 while Silver made a low of 15.85.

In this week, bullion is overall positive till Thursday.

Gold can go up to 1200 in this time frame.

If 1205 is crossed, then it could move up to 1220.

Silver can go up to 16.90 in this time frame. If 16.90 is crossed then it could move up to 17.20.

Strategy:

Maintain long position from Monday-Wednesday.

On Thursday, make short position.

On Friday, a sharp decline is expected.

In next week as well, bullion is expected to undergo sharp declining trend.

.INDIAN STOCK MARKET

Indian market shall be overall negative. Strategy should be to “sell on rise”. On Tue-Wednesday, mixed to positive trend is indicated.

On 11th -12th, sharp decline is expected in Indian market.

NIFTY can break 8,000 in this week.

Bank Nifty can break 17,200 in this week.

In next week as well, Indian equity indices shall be more negative.

TRADING RANGE:

– NIFTY FUT:8,160-8,050

– BANK NIFTY:17,800-17,400

BUY ON DIPS (FOR THIS WEEK):

– M&M

– INDIA CEMENT

– HDFC

– LIC

– MARUTI

– KRBL

– JUBILANT FOOD

Make short position in banking & metal sectors.