Indian Stock Market
Indian market may trade both sides in today’s session. Till 12.00 HRS, volatile to positive trend is indicated. From 12.00 HRS to closing, uncertainty may prevail. Closing may be slightly positive or bearish but there are higher chances or it being bearish.
Nifty Future has support at 12000 and resistance at 12200. Bank Nifty Future has support at 30500 and resistance at 31200.
Tomorrow, it is the union budget in India. Market will see major moves on both sides. In the first half, we expect more of uncertainty. In the second half, positive trend is indicated; closing may be bullish. However, trade with caution. Best strategy: Buy BANK NIFTY – 32500 – 27 FEB 2020- Call option and NIFTY – 12400 – 27 FEB 2020 – Call option. For hedging this position, you can buy BANK NIFTY – 30000 – 27 FEB 2020 – Put option and NIFTY – 11800 – 27 FEB 2020 – Put option. Cover put options within the first half of Saturday session. Hold call option for next week.
Global Equity Market
S&P500 bounced back after making a low of 3240 in the previous session. We asked you to cover 50% short around 3245 and hold remaining position with S/L 3278. Our S/L was triggered. Market may continue in phase of uncertainty for the day.
S&P500 has resistance at 3300. If the resistance is crossed then it may move up. Our view is that market has made its low for now but there is chance of drop to 3250 once again in today’s session.
However, it is advised to remain long at lower levels. Next week seems to be positive for equities.
Day traders may short S&P500 at 3296 (CMP) with S/L 3311 for target 3270. Around 3270, cover short position and enter into long. If it further drops to 3250-3240, add long position.
We asked you to long TESLA @ 573 and MICROSOFT @ 167.70. TESLA made a high of 650 while MICROSOFT made a high of 174.00 in the previous session. At lower level, you may buy APPLE, NETFLIX and AMAZON.
The uncertainty in equities won’t end so soon but may continue till mid-February 2020. From the last week of February 2020, market is again bullish.
We asked you to long crude oil at 52.20. Here onwards, it is taking a U turn. With S/L of 51.00, continue holding long in oil. It may bounce back to 56 in short term. Around 53.50-54.00, book 50% profit in long position.
We are bullish for bullion from a medium-term perspective. Our target for long position in Gold is 1700+. However, by Monday (+/- 1 day), a drop is possible which may take down Gold to 1550-1520. We asked you to short Gold yesterday @ 1580 with S/L 1588. Around 1550, cover short position and enter into 50% long. Make remaining long around 1520.
We asked you to long Silver at 17.40. 50% profit booking was advised at 17.95. Till Monday, Silver may also behave with uncertainty like Gold.
In the medium term, Silver may move up to 19.00 or higher.
In a session or two, accumulate long position in Silver around 17.40. Closing basis S/L of 17.00 shall be followed for Silver.