Global Stock Indices
Today, US market shall continue to trade downward. S&P500 may drop down to 2820-2800. It is advised to book full profit in short position there (along with DOW, NASDAQ, RUSSELL) and enter into 50% long position with S/L 2778. Book 50% profit in DAX at CMP (12090). Book 50% profit in HANG SENG at CMP (27270).
Precious Metals
Continue holding long position in Gold with S/L 1260 and Silver with S/L 14.19. From next week, bullion will move upward. In June-July 2019, considerable bullish moves will be observed. Gold may cross 1300 while Silver may cross 15.
Copper
Copper has triggered our stop-loss. Major support is 2.65. If the support level is not breached then it may move up to 2.72.
Energy Products
CRUDE OIL
It is advised to long 50% crude oil @ 61.00 and add the remaining position @ 60.00. In the month of June 2019, crude will again cross 68.
NATURAL GAS
NG has major support at 2.50. If it doesn’t breach then it may cross 2.65. Long NG with S/L 2.50.
Currency Pairs
EURO (EUR/USD)
It is advised to hold long in EUR/USD. Anytime soon, uptrend is possible in which it may cross 1.1300. Book 50% profit around 1.1220.
POUND (GBP/USD)
Add long in GBP/USD @ 1.2600.
YEN (USD/JPY)
Hold short in USD/JPY for target 109. Book 50% profit around 109.80.
INDIAN RUPEE (USD/INR)
Due to elections, USD/INR will observe considerable volatility. Add long in USD/INR @ 69.00. In the month of June 2019, it may move up to 72-74.
DOLLAR INDEX
Hold dollar index for target 97. In next week, it may drop down to 97.
US Treasury Bonds
US 30 Year T-Bond:
It had been advised to book 50% profit in US 30 Y T-Bond @ 149.98. Hold the remaining position for target 151.
Yield:
Book 50% profit in yield (US 10 Y @ 2.38 & US 30 Y @ 2.80).
Indian Stock Market
Owing to the result of elections, it is going to be an extremely crucial day for the stock market. As per astrology, 23rd to 27th is bearish. Anytime soon, a considerable decline is possible. Volatility will be high due to the union elections and hence, it is advised to trade with light position. Avoid over-leveraging at any cost. On the higher side, Nifty may move up to 12000-12200.
If you intend to trade with elections, you can do the following:
- Sell call options (Nifty 12200 May)
- Buy put options (Nifty 11200 May)
If someone has the capacity to sit till June, best strategy would be to buy Nifty 11500 June-end PE (Put options) and Bank Nifty 29500 June-end PE (Put options). This could be profitable as in the month of June, a major downtrend is indicated.
Buy SBI 330 June PE, BAJAJ FINANCE 3200 June PE. Target for SBI is 282 and for BAJAJ FINANCE is 2800. Buy Bank Of India 80 June PE.
Intraday perspective: Second half shall be downward.