Indian Stock Market
Indian market made its bottom at 9040 before 12.37 HRS as predicted in yesterday’s newsletter. There onwards, it went up to 9225. We covered short and went long in Nifty around 9050 and Bank Nifty around 18250. In the daily newsletter, it was mentioned that the government may announce a relief package or major supportive measures. It was advised to carry forward long position for 13th May 2020.
On 12th May 2020, PM Modi declared a relief package worth 20,00,000 crores for the country. Today, the market shall have gap up opening.
In live signals, we advised buying HDFC BANK, ICICI BANK, HUL, BATA, VMART, DMART, VENKY, REDINGTON, LIC HOUSING, EXIDE IND and MARUTI at lower levels.
Market will remain upward till 10.30/11.00 HRS. The top will be made by then. There onwards, market may turn uncertain. Also, we are seeing a correction on Thursday-Friday owing to global cues. It is advised to book profit long position at higher levels today.
Avoid making fresh long at higher levels. Nifty has a major resistance at 9500 and support at 9200. If it crosses 9500 then next target would be 9700-9800. Bank Nifty has major resistance at 20200 and support at 19200. If it crosses resistance then it may move up to 21000.
Global Stock Indices
In the previous session, stock market declined aggressively. S&P500 made a high of 2940. We asked you to build short position around 2930. It made a low of 2825 in today’s Asian hours. At closing hour of US market, we asked you to book partial profit around 2865. We are still holding 50% short position. If it retests 2880-2900 then you can again make short position. Anytime in this week, it may breach 2800. We should not be surprised even if S&P500 drops to 2750.
Our target of 34.00 was achieved by S&P500- VIX Futures.