The future of US-China trade war

/ General /

Global Stock Indices

US-China trade war is leading a sharp fall in equity. S&P500 made a low of 2811 while DOW made a low of 25276 and NASDAQ made a low of 7358. RUSSELL made a low of 1440. S&P500 has a major turning point in this week. Today, the market may remain bearish as per astrology. It is possible that the bottom of S&P500 has been made at 2811. If this bottom is breached then it may drop down to 2800-2780 at max. At this level & around 2780, it is advised to buy call options. Next day, the market may trade positive. On Wednesday, the mixed trend is indicated. On Thursday, a downtrend is possible. On Friday, it is the New Moon. Normally, the market is bullish but this time, we are not sure. On 2nd September, it is a US holiday. There onwards, a rally will start in US market for the short term. If S&P500 moves up to 2930 then cover long position and enter into a short position with S/L 2940.

After the US opening, you can buy the following stocks for short term:

  • BANK OF AMERICA
  • APPLE
  • AMAZON
  • FB

Long CAC with S/L 5200, DAX with S/L 11300 and HANG SENG with S/L 24900.

Precious Metals

US-China trade war has initiated a bullish trend for precious metals. It’ll also have a major turning point in the week ahead. From next week, it may enter sharp correction until 25th September 2019. If 1565 is crossed by Gold then it may move up to 1580. Buy put options of Gold (strike: 1500) till 25th September 2019. Silver Dec contract made a high of 17.90. It has resistance at 18.00. Silver will follow the movement in Gold. One can buy put options of Silver (strike: 17.00) till 25th September 2019.

Indian Stock Market

Indian market may witness a gap up opening today due to the boosters by Finance Minister announced after Friday’s closing. The market shall remain positive till Wednesday. On Thursday, a mixed trend is indicated. On Friday, the trend is again favorable. Nifty has support at 10600 and resistance at 11200. From next week, a major uptrend is indicated. However, the following Monday shall be a holiday for the Indian market on account of Ganesh Chaturthi.

Intraday perspective: Gap up opening is indicated. The market shall trade bullish till 11.00 HRS. From 11.00 to 14.30 HRS, profit booking is possible. From 14.30 HRS to closing, an uptrend is indicated. Next day, the market may again open positive.

TRADING RANGE:

  • NIFTY FUT: 10800-10950
  • BANK NIFTY FUT: 26900-27500

Alert: The pain in stock market will end by August 2019. From September 2019, trend will change.