GLOBAL STOCK INDICES
In the previous session, the stock market again closed positively. S&P500 made a low of 4165 and high of 4210; it closed at 4202. Today in the US hours, it is Sun-Uranus conjunction; the market may trade mixed to positive. S&P500 has support at 4160 and resistance at 4210. It doesn’t seem that S&P500 would cross 4220. Mercury will transit from Aries to Taurus. On 4th, Venus will also enter Taurus. On Sunday, Sun-Saturn square will be formed. These planetary combinations indicate downtrend that may start Monday onwards. This month of May is generally bearish for global markets. 4200-4210 could be levels to make short position in S&P500 for next week. Short DOW around 34000 with S/L 34200 & NASDAQ around 13900-14000 with S/L 14100. FB had a record opening; we ended up booking profit there. AMZN too announced a very positive result as per expectations – it closed at 3550 in after-market. We are still holding AMZN and would book profit today. TSLA made a low of 670 in the previous session. TSLA is a good stock for positional traders and can be accumulated at dips. European markets behaved negative in the previous session. Short at higher level is advised in European indices for the next week. Short AEX around 712-715.
In the previous session, Gold witnessed a sharp correction wherein it made a low of 1754 and then bounced back. It is advised to make 50% long position in Gold at CMP-1766. Gold may retest 1760 owing to ongoing volatility. Remaining long position is advised in Gold around 1755 with S/L 1750. In the US hours, it might move up to 1780 or higher. We asked you to long Silver at 26; add long position around 25.80. Book 50% profit around 26.50. The next week is overall positive for Gold & Silver.
Short Copper at higher level. In the next week, Copper and other base metals might witness downtrend.
Crude may witness sharp fall in the next week. It may drop down to 60.50 once again. Short oil at higher level (65).
Hold short position in NG. It may drop down to 2.55-2.50 in the subsequent weeks.
US 30 Y T-Bond
Book 50% profit in US 30 Y T-Bond at 158.
Indian Stock Market
Indian market saw a high of 15090 (Nifty) & 34400 (Bank Nifty) in the previous session. Positional traders are advised to hold short position with S/L of 15100 (Nifty) and 34500 (Bank Nifty).
Today’s opening will be gap down. Book 50% profit there itself. Again, wait for higher levels to make short position in indices. The next week could have significant downtrend. However on Monday, it is elections result in West Bengal and hence the market may surprise us with an uptrend. Our advise is to carry forward only 50% short position for Monday.
Today’s session may be highly volatile but closing is expected to be overall bearish.
Mercury is changing position on Saturday (moving from Aries to Taurus). It may cause a downtrend in metal stocks. If the metal/banking/finance stocks close negative on Monday then further downside would be observed in the later part of the week.