GLOBAL STOCK INDICES
In the last daily newsletter, it was mentioned that markets would open lower on Monday. S&P500 closed at 2878 on Friday and today, a low of 2853 has been made. Market shall be bearish for today and tomorrow. It can drop down to 2825-2820. It has major support at 2800 which if breached may force the decline to 2776. Resistance for S&P500 lies at 2900. Strategy should be to “sell at higher level”. Around 2825-2820, cover 75% position and again short at higher level.
On Monday-Tuesday, bearish trend is indicated. On Wednesday, positivity is expected. On Thursday, trend is again unfavorable. On Friday, first half is expected to be bearish and the second half may witness short covering (similar to what was observed last Friday). On 20th May 2019, market may again start at lower level.
In the next week, 23-24th May 2019- a major decline is expected. Either of these days could be BLACK DAY. Remain short at higher level.
Book 50% profit in European indices & AEX at CMP and again short at higher level.
Bullion may trade mixed for the day. In the next session, recovery is expected from lower levels. From Wednesday, it’ll start to move up. It shall remain upward until Friday. In next week, positive trend is indicated.
Around 1281-1278 and 14.60-14.65, long Gold and Silver. Gold has resistance at 1293 and (positional) support at 1265.
It may breach $60/bbl in this week. In next week, it’ll continue to be bearish. For today and tomorrow, trend is unfavorable. On Wednesday, uptrend is possible; On Thursday-Friday, negativity may again be observed in price of oil. Around 60.50-60.00, cover short position. Around 62.50, short crude oil.
Continue holding long in EUR/USD for target 1.1300 (positional target 1.1400) with S/L 1.1150. Long EUR/USD at lower levels.
Remain long in GBP/USD for target 1.3150 with S/L 1.2900.
Hold USD/JPY for target 109.00.
INDIAN RUPEE (USD/INR)
Hold USD/INR for target 71-72. We shouldn’t be surprised even if it hits 74.
Dollar index may drop below 96 in coming days. Hold short position for target 96.
US 30 Year T-Bond:
Hold long position for target 150.
Hold short position in yield.
Hold long position in BTC/USD with S/L 5500. Around 7150, book 50% profit in BTC/USD.
INDIAN STOCK MARKET
Indian market is going to witness high volatility as elections are about to end. Market is going through a rollercoaster ride.
On Monday-Tuesday, bearish sentiments may dominate the market. On Wednesday, positivity is expected. On Thursday-Friday, it’ll again turn unfavorable.
On 20th of the month, the exit polls of Lok Sabha elections will be available. Major momentum is expected. On Friday, don’t carry forward any considerable position for next week. We are bearish about 20th May 2019.
You may carry short in Nifty and Bank Nifty for next week but hedge it with call options.
On 23rd and 24th, major decline is possible as per planetary combinations (especially on 24th, it can be BLACK FRIDAY).
Strategy: Around 11150-11050, positional traders may cover 50% short position in Nifty and hold the remaining position. Again make short position around 11350-11400.
Today, market shall trade bearish. From 12.30 HRS, market may decline further. Closing shall be bearish.
SELL AT HIGHER LEVELS:
- RELIANCE CAPITAL
- SUN PHARMA
- SUN TV
- MOTHERSON SUMI
- GLENMARK PHARMA