S&P 500 -American and Nifty- Indian Stock Market and Bullion Forecast For 16 September 2020 (FOMC Special)

US Stock Market

In the previous session, DOW closed flat, S&P500 closed upward by 0.5% and NASDAQ closed upward by 1.25% owing to tech stocks.

In today’s Asian hours, DOW made a low of 27846, S&P500 made a low of 3385 and NASDAQ made a low of 11390.

VIX made a low of 24.88 in the previous session and observed a U turn. It is currently trading at 25.57. This has been a key reversal point for the trend in equity this month.

Today, Sun will enter Virgo, form square with Rahu and trine with Saturn. Also, it is the New Moon. FOMC is scheduled at the same point. Today, heavy volatility may be observed. S&P500 may move up to 3430 on the higher side. After FOMC, a drop is indicated which may continue for the remaining part of week (Thursday & Friday). By Friday, S&P500 can drop down to 3320. We are long in FDX @ 230 and ADBE @ 482. In after market, FDX closed at 255.95 and ADBE closed at 507.80.    It is advised to book profit in these stocks. We went long in MRNA @ 59 – it closed at 66, NVDA @ 519, AMD @ 75.80 and ZM @ 402 –it closed at 410.95. At today’s opening, book profit in long position.

Precious Metals (Bullion)

In the previous session, Gold made a high of 1981 while Silver made a high of 27.85. From there, a profit booking was observed. Gold made a low of 1958 – where we went long in 50% position. Added long in Silver at 27.30. Today, bullion is expected to move higher. Gold may bounce back to 1980 while Silver may bounce back to 27.90. We are bullish on precious metals until October 2020. However after FOMC, a drop is likely to happen. From Friday, it’ll again drop. It is advised to book profit in long position of precious metals at higher levels before the FOMC announcement. Long position is again advised on Friday.  

Industrial Metals

Copper achieved our target of 3.08 in the previous session. It is again advised to buy Copper at CMP (3.06) with S/L 3.03 for target 3.08-3.09.

Energy Products

Crude Oil

Owing to storm, crude is moving higher. Overall positive trend is indicated for the day. If resistance at 39.30 is crossed then it may move higher. Support lies at 38.10. . Book profit in crude oil at higher levels today as it may drop with the stock index on Thursday. We went long in crude @ 36.80.

Natural Gas

NG has support at 2.30. It may move up to 2.45-2.50. Book profit in NG at higher levels today as it may drop with the stock index on Thursday. We went long in NG @ 2.28.

Currency Pairs


Our target of 1.1900 was achieved in the previous session. Around 1.1900, you can now short EUR/USD for the downtrend tomorrow.


GBP/USD achieved 1.2900 in the previous session. Short GBP/USD around 1.2950 for the downtrend tomorrow.


Hold long position in USD/JPY. Add long position around 105 for target 106.20.


Add long position at lower level. Book 50% profit around 73.70.


Long dollar index at 92.85 for Thursday (target would be 93.20-93.50).

Indian Stock Market

Indian market may experience heavy volatility and hence day traders shall be cautious with their positions. After opening, it may move higher and witness sharp profit-booking by 13.00 HRS. From 13.00 HRS to closing, a mixed to positive trend is indicated. On Thursday-Friday, there is a chance of drop. Nifty may move up to 11550-11600 today but by Friday, it may drop down to 11300. Bank Nifty may move up to 22800-23000 in today’s session but by Friday, it may drop below 22000.

Nifty has support at 11450-11375 and resistance at 11600. Bank Nifty has support at 22200 and resistance at 22800.