Global Stock Indices
7th August 2019 was the key turning point of all markets. S&P500 made a low of 2820 followed by high of 2892. DOW made a low of 25350 followed by high of 26040. NASDAQ made a low of 7350 followed by high of 7598. RUSSELL also closed above 1500. For today and tomorrow, market is supportive. S&P500 has support at 2800 and resistance at 2900. It may cross 2900. Today onwards, volatility may reduce. After 16th (+/- 1 day), market will turn bullish. The effect will be visible across global markets. The bottom of market has been made on Tuesday at 2776. Day traders are advised to either avoid the market or buy call options at two levels (one at CMP and one at difference of 50 points).
Precious Metals
Gold Dec contract made a high of 1524 while Silver made a high of 17.20. Precious metals is ready for a sharp reversal. At the late evening hours, Venus-Jupiter trine is being formed along with transition of Mars from Cancer to Leo. This may lead to a correction in bullion. Here onwards, Gold may drop down to 1480-1460 while Silver may drop down to 16.80 or below.
Copper
Copper has observed a U turn from lower levels. Here onwards, it’ll start moving up. With Copper, the movement will be observed in other base metals as well.
Crude Oil
For today and tomorrow, crude is supportive. It may move up to 54-55 in a day or two. With S/L of $50/bbl, hold long in crude.
Natural Gas
Long NG at CMP (with S/L 2.00) as here onwards, NG is supportive. Jupiter is turning direct on 11th August; it shall turn highly bullish.
Currency Pairs
EURO (EUR/USD)
Long EUR/USD at lower level.
POUND (GBP/USD)
Long GBP/USD at lower level with S/L 1.2100.
YEN (USD/JPY)
Hold long in USD/JPY with S/L 105.
INDIAN RUPEE (USD/INR)
Short USD/INR at higher level.
DOLLAR INDEX
Short dollar index at higher level.
Indian Stock Market
RBI announced an interest rate cut of 35 basis points (0.35%) which was higher than our expectation. Yet, market was unable to sustain levels. We had mentioned that profit booking would be observed after 14.00 HRS. Continue holding long in Nifty with S/L 10800 (on closing basis) and Bank Nifty with S/L 27000 (on closing basis).
Short covering is due in market either today or tomorrow. Volatility may reduce.
Intraday perspective: From 10.15 to 12.15 HRS, market may observe positive trend. From 12.15 HRS to closing, market may trade volatile to flat.
Financial / banking sector may experience short covering anytime from today (especially in the second half).
The bottom of RELIAINCE INDUSTRIES and L&T have been made in the previous session. Here onwards, uptrend is indicated. From 16th, market will enter bullish phase.
Day traders are advised to avoid the market or buy call options.
Mars is transiting in Leo tonight which can cause a major reversal in metal stocks.
TRADING RANGE:
- NIFTY FUT: 10820-11050
- BANK NIFTY FUT: 27550-28200
Positional traders can buy L&T, RELIANCE INDUSTRIES, SBI, PNB, BOI, HINDALCO, TATA STEEL, BAJAJ FINANCE, SHRIRAM TRANSPORT, DLF for next few weeks.