Stock market, bullion and crude oil on 28 February 2019

/ General /

Global Equity Indices

The market may continue to be supportive for the day with some volatility. It is advised to square off long position at current market price and short 50% position at CMP & rest around 2810 along with other equity indices.

From the next session, market will start to decline. It is going to be a big reversal day. This trend will continue until 8th March 2019. S&P500 can drop down to 2700 or lower in this time frame.

From 24th December, American market was moving upward. In next session, it will be Venus square, which indicates strong reversal trend for the market as described earlier.

Precious Metals

Gold breached 1320 while Silver breached 15.70 in the previous session.

By next session, Gold may further correct to 1305-1300 while Silver may extend this decline to 15.40. Wait for next session to enter into positional long across precious metals (one can long 50% Gold @ 1305-1300, Silver @ 15.40 or at Friday’s closing). Wait for next week to make the remaining long position.

In medium term from Monday, Gold will climb up to 1375-1400 while Silver will climb up to 16.20-16.50.

Crude Oil

The top of oil has been made. Today, it shall be a range bound day. Sharp fall shall start in crude oil from tomorrow. Until closing, it can drop to 55-54. In next week, it can further drop to 52 or below.

Indian Stock Market

Indian market shall be volatile for the day. The closing is expected to be upward.

Mercury-Uranus square may initiate a decline in the market which may continue for the next week. Nifty can drop down to 10600 or below. At higher level (10900), make 50% short position in Nifty and rest around 11000. Or one may buy put options (50%) at CMP and rest at higher levels.

Intraday perspective: Trend shall be mixed till 12.00 HRS. From 12.00 to 14.30 HRS, trend shall be positive. From 14.30 HRS, profit booking is likely.

Short covering is possible in the second half.

Day traders can book 50% profit in long position by 10.00 HRS and around 12.00 HRS (+/- 10 minutes), buy back long position and book full profit around 14.30 HRS. After booking profit in long position, one can build short and hold for next week.

BUY AT DIPS:

  • M&M
  • ASHOK LEYLAND
  • AUROBINDO PHARMA
  • SBI

SELL AT HIGHER LEVELS:

  • TATA STEEL
  • JET AIRWAYS
  • JSPL

S/L, Target & range: ONLY FOR MEMBERS!

Annual Letter 2019 is out. Hurry to get your copy!