Global Stock Indices
In the previous session, the stock market went through a sharp selloff owing to coronavirus. S&P500 breached our stop-loss of 3220 and fell further. It made a low of 3118 while DOW made a low of 27000. Today, a sharp recovery is anticipated in equity. With S/L of 3110, long S&P500 or buy call options. With S/L of 26900, long DOW or buy call options. With S/L of 8800 and 1549, long NASDAQ and RUSSELL.
S&P500 may cross 3250 in a day or two. On Friday, market may again trade uncertain. This uncertainty may continue till 10th March 2020. Mercury is retrograde till 10th March 2020.
Front line stocks can be bought.
Indian Stock Market
Indian market may open gap down. Market shall trade range-bound till 12.00 HRS. From 12.00 HRS, a fast recovery is possible. It may trade mixed to positive till Thursday. Nifty has support at 11650 while Bank Nifty has support at 29800.
On Friday, market may again turn negative.
Yesterday, it remained a negative day as per our prediction for precious metals. We went out of long position in Gold and Silver on Monday. We covered Gold at 1680 and Silver at 18.80.
We again went long in Silver at 18.20 and Gold at 1650. Add long position in Gold at 1625 and Silver at 17.90.
Today, recovery may start anytime soon (especially in the second half). On Thursday and Friday, uptrend is indicated.
Use S/L of 1620 and 17.78 for long position in Gold and Silver.
By March-end 2020, target for Gold is above 1700 and for Silver is 19.50.
It should be noted that if by Friday a considerable rally is observed in precious metals, book 75% profit at closing hour.
Crude breached 50.00 in the previous session. With closing basis S/L of 49.00, make long position in crude for target 52.00-53.00. It has support at 48. By March-end, it may move up to 58-60.