Part of Daily Newsletter sent on 21st September 2021 as a gift for our audience: View on US Stocks, Indian Stocks, and Bullion
The global markets went through a sharp correction in the previous session. It was advised to book partial profit in short position of S&P500 @ 4360, DOW @ 33962, NASDAQ @ 15111. The market may behave highly volatile for today and Wednesday. The higher level should be seen as an opportunity to take a short position. After FOMC on Wednesday, a sharp fall may start in the stock market (more likely from Thursday). This downtrend may last for the next few weeks. S&P500 may breach the 4000-mark on the lower side. Volatility is high and hence, day traders are advised to use S/L strictly. Positional traders may remain short at higher levels. DOW breached 34100 in the previous session. It may drop down to 33000. We asked you to take a short position last Friday when S&P500 triggered 4420.
Indian market may experience high volatility for today and Wednesday. From Thursday, a sharp correction is possible. In the coming days, Nifty may drop down to 16800 while Bank Nifty may drop down to 35000. A short position is advised in Nifty around 17650 and Bank Nifty around 37700-37800. S/L for short position in Nifty: 17850.
Day traders should not trade without S/L as volatility will remain high.
Today, the market will move in both directions.
Last week, it was predicted that Friday would be the downward day.and since then, market has been correcting as per our prediction.
Bullion may continue with its volatility till the end of the month. Avoid buying for now. After FOMC, sharp correction may be visible in precious metals. Gold has resistance at 1780 and support at 1745. Silver has resistance at 22.60 and support at 22.00.