Part of 23 July 2020 Newsletter covering American and Indian markets

USA Stock Market
In the previous session, S&P500 closed 0.5% upward while NASDAQ closed flat. S&P500 made a low of 3227 followed by high of 3270 and closed at 3265.  DOW Fut closed at 26884 and NASDAQ closed at 10804. RUSSELL closed at 1490.

In a day or two, market may decline (especially tomorrow). S&P500 has support at 3220 and resistance at 3281. The double top of NASDAQ has been made at 11047 (on Tuesday). Resistance for NASDAQ will remain around 11070 and support would exist at 10700. DOW has resistance at 27000 and support at 26500.

It is advised to short S&P500 at 3255 and 3272. 

For today, market shall be highly volatile. Closing may be slightly negative. TSLA results have been positive. In after-hours, the stock is up by 4.5%. Our view is that after a gap up opening, it may start to drop. In next two weeks, it may breach 1300. MSFT’s result has been positive as per our expectations. Today, it may continue to trade positive. INTC can be bought for its earnings.

Universal Health Services (UHS) and Moderna (MRNA) shall remain bullish for the days ahead. On 27th July, UHS’ result will be announced; expectations are favorable.  

Indian Stock Market

Indian market traded as per our prediction in the previous session. Nifty opened at 11190, made a low of 11050 and recovered to close at 11110. Bank Nifty opened at 23180, made a low of 22585 and recovered to close at 25832.

Today, it is the weekly expiry and high volatility may be observed.

Intraday perspective: Market may trade mixed to negative for the day. From 10.50 HRS, slight uptrend is indicated. From 12.50 HRS, market may trade mixed to negative. Closing may be bearish.

On Friday, market seems more negative.

Keep S/L for short position of Nifty at 11255 and Bank Nifty at 23210.

Tomorrow, Mercury will enter debilitated Pisces navmansa. This shall be negative for banking sector. You can short banking stocks at higher levels today.

Natural Gas

Hold NG for target 1.78-1.79 with S/L 1.60.

Crude Oil

Crude made a low of 41.10 in the previous session and is again back at 42. You can short oil around 42.50 for target 40-39.