31 January 2019: View on global stocks, commodities and bonds

GLOBAL STOCK INDICES

In the previous session post FOMC announcement, delay in interest rate hike caused the market to move up. Today, market shall be range-bound and again move downward from next session. The market may close slightly bearish today. From tomorrow, sharp decline is possible which may continue for next week. It is advised to again short 50% DOW @ 24970, S&P500 @ 2685, NASDAQ @ 6858, RUSSELL @ 1490. By next week, S&P500 may drop down to 2630 or below. It is a trap for bulls. On the higher side, it’ll be difficult for S&P500 to cross 2700. 

TRADING RANGE (MAR contract):

  • DOW FUT: 25060-24800
  • S&P500 FUT: 2688-2660
  • NASDAQ FUT: 6870-6800
  • RUSSELL FUT: 1492-1472
  • FTSE FUT: 6920-6850
  • CAC FUT *JAN: 5010-4920
  • DAX FUT: 11260-11150
  • AEX FUT: 520-512
  • HANG SENG FUT : 27950-27500

PRECIOUS METALS

The uptrend is over in bullion. From next session, bullion shall be bearish. Here onwards, Gold and Silver may again drop to 1280 and 15.40-15.00 in coming days. Around 1318 and 16.02, add short in Gold and Silver.  

TRADING RANGE:

  • GOLD (FEB) : 1320-1305
  • SILVER (MAR): 16.12-15.80

INDUSTRIAL METALS

It is advised to short Copper at higher level.

Trading Range:

  • COPPER: 2.78-2.75

ENERGY PRODUCTS

CRUDE OIL

Short crude oil at higher level.

NATURAL GAS

Long NG at lower level.

Trading Range:

  • CRUDE (MAR): 55.00-53.50
  • NG (JAN): 2.85-3.15

CURRENCIES

EURO (EUR/USD)

Book full profit in EUR/USD @ 1.1495. Short EUR/USD with S/L 1.1550.

POUND (GBP/USD)

Book 50% profit in GBP/USD @ 1.3117. Hold remaining position for target 1.3300.

YEN (USD/JPY)

Book full profit in USD/JPY @ 108.90 and long 50% USD/JPY @ CMP.

INDIAN RUPEE (USD/INR)

Long USD/INR at lower level.

DOLLAR INDEX

Book full profit in dollar index @ 95.00 and enter into long position for target 96.00.

TRADING RANGE:
– EUR/USD: 1.1540-1.1380

– GBP/USD: 1.3040-1.3200

– USD/JPY: 108.80-109.50

– USD/INR (SPOT): 70.90-71.40

– DOLLAR INDEX: 95.00-95.50

US TREASURY BONDS

US 30 Year T-Bond:
Book 50% profit in US 30 Y T-Bond @ 146. Hold remaining for target 147.

Yield:

Book profit in yield (US 10 Y @ 2.67 & US 30 Y @ 3.03) and again short at higher level.

TRADING RANGE:

  • US 30 Y T-BOND: 145.50-146.50
  • US 10 Y YIELD: 2.70-2.72
  • US 30 Y YIELD: 3.06-3.00

INDIAN STOCK MARKET

Indian market shall be highly volatile for the day. Both side, broad range will be seen. Closing shall be overall positive. Next day, it is the announcement of budget. It is best advised to not carry forward any position for tomorrow. Next day, heavy volatility is indicated. After the budget, a sharp correction is possible which may continue for next week.

Around 10750, cover long position in Nifty and enter into short position. Around 27100-27200, cover long in Bank Nifty and enter into short position. This short position should be covered at today’s low and again intraday buying is recommended. By closing, book profit in intraday buying position.

TRADING RANGE:

  • NIFTY FUT (JAN): 10650-10750
  • BANK NIFTY FUT(JAN): 26700-27200

Intraday perspective: Market shall open gap up for the day. It shall remain positive with volatility till 11.30 HRS. From 12.30 to 13.30 HRS, sharp decline is possible. From 13.30 HRS to closing, a major uptrend is possible.

BUY AT DIPS:

  • EIH 
  • ICICI BANK
  • AXIS BANK
  • TATA STEEL
  • TATA MOTORS
  • JUBILANT FOOD
  • HUL
  • LT FOOD
  • KOHINOOR FOOD

SELL AT HIGHER LEVEL:

  • IOC