STOCKS
Almost all stocks are stable and could consolidate for a few sessions. Resistances are visible not very far from current levels and a sharp corrective dip thereafter is possible.
Dow (20981.33, +0.03%) was almost stable yesterday with and is not attempting t rise above 21000.Similarly Dax (12443.79, -0.23%) is also stable near 12500. Both the indices could consolidate for a few sessions and ty to move a little higher to test respective resistances near 21400 and 12600-12700 before coming off from there. However, upside is limited for the near term.
Shanghai (3141.63, -0.33%) could trade within the 3180-3100 region for at least the next 2-3 sessions before deciding the further course of direction. On the 3-day candles support is visible just below 3100 and is expected to hold in the medium term.
Nikkei (19213.09, -0.20%) has potential to test 19620 in the next week in case it breaks above 19300. Thereafter a corrective dip towards 18800 is possible.
Nifty (9342.15, -0.10%) has been slowly moving up towards 9400. Yesterday was a quiet day and we could soon expect a sharp fall in the medium term.
COMMODITIES
Gold (1266) is trading within the narrow range of 1265-1300.Buyers will take every dip as a further opportunity for buying while it is trading above 1260-65 levels. 1275-80 could be the levels where the price action has to be checked to assess the chances of further bounce to 1305 to 1330 levels.
Silver (17.28) is Oversold and trading within the range of 17-17.45.A close above that could open up 17.80 levels as well. Copper (2.58) has shown some strength as it manages to trade above its crucial support at 2.57. But only above 2.65-67, higher resistances of 2.72 -80 can come into consideration. If copper will manage to close above 2.65 levels then we might see sharp upside rally in silver too.
Muted price action had been seen in Brent (51.74) and WTI (49.31). While we have been expecting a bounce from 51.69 to 53.80 in Brent and 49.31 to 51.50 in WTI and we prefer to wait for higher levels to create fresh short positions.
FOREX
Dollar Index (99.04) still hovers just above the make or break support of 98.50 but requires a rise above 99.35 for a confirmed reversal signal and Euro (1.0867) has again come off the highs after being rejected from the major resistance of 1.0950, keeping open the possibility of a downward correction to 1.0824 and 1.0700.
Dollar-Yen (111.16) is holding below immediate resistance near 112 and could trade in the 112-111 zone for 1-2 sessions before coming off towards 110.50. Immediate support visible near 110 as mentioned yesterday.
Pound (1.2913) has moved up after initial consolidation in the 1.2864-1.27730 region and now while the upward momentum continues, we could see a rise towards 1.30 in the near term.
Aussie (0.7475) is almost stuck near support at 0.7450. ther could be a short bounce towards 0.75 in the next 2-sessions.
Dollar-Rupee (64.19) is trading higher and hovering around its crucial resistance at 64.20/25. It it will hold then we could see trade within the 63.90-64.20/25 region with a possible extension to 64.35. However, a dip towards 63.80 is on the cards possibly next week before a bounce back towards 64.25-35 is expected.
INTEREST RATES
The US yields are down as expected. . The 5Yr (1.82%), 10YR (2.29%) and the 30YR (2.96%) are all down 2bps and looks bearish in the enar term. The 10yr could come down to test 2.20% while the 30Yr may test 2.9% in the coming sessions.
The German-US 2Yr (-2.00%) and the 10YR (-1.99%) has shown some signs of reversal and if it sustains in the coming week, we could see a fall in Euro towards 1.07.
The US-Japan 10YR (2.27%) has fallen and could move towards 2.2% in the near term indicating a slight dip in Dollar-yen and Nikkei in the next 2-3 sessions.
