STOCKS
Dow (22026.10, +0.04%) is stable near current levels. But it could move up slowly towards 22500 from where some rejection is possible. Dax (12154.72, -0.22%) on the other hand is stuck within the 12350-12080 region for the last 8-9 sessions and could continue for a few more sessions. There is some scope of coming off towards 12000 in the next few sessions.
Shanghai (3280.92, +0.24%) needs to sustain above 3300 in order to continue moving up. Else a corrective dip towards 3200 is possible in the coming sessions. Trend remains firmly up. Nikkei (19956.58, -0.36%) continues to remain in the sideways consolidation and lacks directional clarity just now. We need to wait for a few more sessions to get some cue on whether it would move above 20200 or come down below 19900.
Nifty (10013.65, -0.67%) is clearly coming off from the resistance visible on the 3-day charts. It could now come off towards 9900 as mentioned yesterday.
COMMODITIES
Gold (1267) is struggling to rise above the 1270-75 regions and only a break above that may open up the higher target of 1295. Crucial supports are poised at 1258 and 1245 levels. In case the Support at 1245 breaks, there will be a further dip to 1230 and 1210 levels respectively. Silver (16.66) stands comparatively strong due to the recent strength in copper prices. Immediate resistance poised at 17 levels. Only a close below 16.50 could open up 16.20 and 15.90 levels respectively. We might see significant fall in Silver if there will be any short term price correction in Copper towards sub 2.85 levels.
Muted price action has been seen in Copper (2.88). Midterm resistance comes at 3.12 regions from where we may see some correction due to profit taking. We will remain bullish on copper while it is trading above 2.78 regions.
Brent (51.90) and WTI (48.94) are trading within the ranges of 48-53 and 47.60-49.50 respectively. We might see some weekend profit booking at current levels, but we will remain bullish on Brent and WTI, while they are trading above 48.70 and 45.50 levels on a weekly closing basis.
FOREX
A worse than expected reading of US ISM manufacturing index keeps Dollar Index (92.78) weak and on track to its downside target of 92.00. Euro (1.1875) is seeing a narrow range day as the wait for the US NFP data goes on. A weak US NFP data would be beneficial for Euro to test 1.20 and push Dollar Index to 92.00.
Dollar-Yen (110.14) faced a sharp rejection from exactly our resistance of 111.00-10 to test sub-110.00 levels. In the near term, a trending move can be expected next week but only on a break from the range of 109.30-111.10. Otherwise, the pair may oscillate in this range for a few more days before a breakout.
BOE kept the rates unchanged but a cut in the GDP and wage growth projection triggered a sharp decline in Pound (1.3139) taking it to the near term support of 1.3100. A recovery can be expected if it manages to stay above 1.3100-1.3050. There is an equal probability of a breakdown below 1.3050 signaling a top at 1.3260. Wait and watch.
Aussie (0.7970) continues its consolidation mode in the range of 0.7875-0.8050 which may continue for a few more sessions. The larger trend remains up and the higher targets of 0.8100-70 remain unchanged.
Dollar Rupee (63.70) closed flat at 63.70 after making an intra-day low of 63.55 as expected. There are chances of testing lower levels of 63.30/25 in the coming sessions while price remains below 63.95.
INTEREST RATES
The US yields have fallen and could move down in the coming sessions to test respective supports. The 5Yr (1.79%), 10Yr (2.23%) and the 30Yr (2.80%) are all trading lower from previous levels of 1.82%, 2.26% and 2.85%; and could test supports near 1.70%, 2.10% and 2.60% respectively. Near term looks bearish.
The UK-US 10Yr (-1.08%) has fallen and could test support near -1.13% from where a bounce back is possible.
