STOCKS
Dow (25295.87, +0.88%) closed at levels above 25000, breaking above the immediate weekly resistance. While the rise sustains, we could see a rise towards 25400-25600 levels in the near term. The index is likely to be bullish in the coming sessions.
Dax (13319.64, +1.15%) broke above 13200 finally instead of seeing another fall towards 12800. This rise could take it higher to re-test earlier levels of 13500-13600 in the coming sessions. Near term looks bullish while above 13200.
Nikkei (23714.53, +0.89%) has moved up to almost test our mentioned upside of 23800. Important weekly resistance is visible near 24000 from where a small sideways consolidation is possible before any other rise further. Dollar Yen (113.187) has moved up quite a bit while the US-Japan 10Yr yield spread (2.42%) is up by 1bps. While scope for Dollar Yen and the yield spread is open on the upside, we could see a rise in Nikkei too in the near term.
Shanghai (3399.93, +0.24%) is in an uptrend and is likely to move up towards 3450-3500 levels in the near term.
Nifty (10558.85, +0.51%) and Sensex (34153.85, +0.54%) closed above 10550 last week while Sensex is yet to break above 34200. If Sensex also breaks above 34200, we could see some more upside in the indices by end of the month. Else a corrective dip is possible in the near term.
COMMODITIES
Commodities may be trading near resistance levels and some corrective dip is likely to be expected in the coming sessions.
Gold (1320.28) is almost stable near immediate resistance and could test 1330-1350 levels on the upside. Strength in the Euro (1.2033), if seen could act as a supporting factor for increase in the Gold price.
Brent (67.76) and WTI (61.62) have come off a little but are overall stable near previous levels. Brent has scope of testing 70 before coming off from there while WTI has indeed come off from resistance levels and can trade within 62-61 levels before moving up towards 63 or higher.
Copper (3.2340) has come off from levels near 3.27 and is likely to head lower towards 3.15 in the near term.
FOREX
Euro (1.2077) held above the 1.1997 Support yesterday and may move up to 1.2150 while above 1.20. Break below 1.20 sets up test of stronger Support at 1.19, delaying but not negating rise to 1.2150.
Dollar-Yen (112.82) did not break below 112 yesterday and may try to weakly test the 113.00-50, as the bounce could fizzle out.
The Euro-Yen (136.22) has risen past the resistance at 135.70 mentioned yesterday. This opens up chances of a rise towards 1.38, after the multi-month sideways consolidation between 132-134.
The Pound (1.3562) trades higher and may well rise past 1.36 as well.
The Aussie (0.7852) seems to be breaking above the 200-week Moving Average mentioned yesterday and may rise further towards 0.80.
Dollar-Rupee should have Resistance in the 63.60-80 region and can test 63.30-10 along with Euro strength.
