Commodity Tips for the Week
Gold:
US gold futures ended above $1,100 an ounce on Friday, gaining 1 percent on the back of a euro rally based on a Greece rescue plan, and the metal was expected to take trading cues from the currency market.
Technicals
Comex gold is still technically weak, & last week it was in a range between $1083 to $1110 an ounce. If COMEX gold sustains below $1083 an ounce then it can test the level of $1050 and on the upside $1150 will be a major hurdle to change the trend of Gold. In the coming week traders can use the sell on higher level strategy by keeping the strict stop losses in gold.
Major resistance in COMEX gold is $1160 and $1175 and supports at $1078 and $1050. Major resistance in MCX gold is 17250 and 17650 and supports at 15970 and 15710.
Copper:
US copper futures settled up near a two-week high on Friday as investor appetite for risk improved and the dollar surrendered recent gains against the euro after euro zone leaders agreed on a plan to help debt-strapped Greece.
Comex copper has been in a tight range between 343 and 330 levels for the past two weeks. Unless the prices sustain above 349 level we can still say that copper is weak and if it breaks and sustain below 329 level it can further test the support of 319. For the coming week traders should use the strategy of sell on higher levels until copper sustains above 349. Comex copper has a crucial support of 329 and 316 and resistance at 355 and 375. For MCX copper support is found at 323 and 311 and resistance at 354 and 371.
US gold futures ended above $1,100 an ounce on Friday, gaining 1 percent on the back of a euro rally based on a Greece rescue plan, and the metal was expected to take trading cues from the currency market.
Technicals
Comex gold is still technically weak, & last week it was in a range between $1083 to $1110 an ounce. If COMEX gold sustains below $1083 an ounce then it can test the level of $1050 and on the upside $1150 will be a major hurdle to change the trend of Gold. In the coming week traders can use the sell on higher level strategy by keeping the strict stop losses in gold.
Major resistance in COMEX gold is $1160 and $1175 and supports at $1078 and $1050. Major resistance in MCX gold is 17250 and 17650 and supports at 15970 and 15710.
Copper:
US copper futures settled up near a two-week high on Friday as investor appetite for risk improved and the dollar surrendered recent gains against the euro after euro zone leaders agreed on a plan to help debt-strapped Greece.
Comex copper has been in a tight range between 343 and 330 levels for the past two weeks. Unless the prices sustain above 349 level we can still say that copper is weak and if it breaks and sustain below 329 level it can further test the support of 319. For the coming week traders should use the strategy of sell on higher levels until copper sustains above 349. Comex copper has a crucial support of 329 and 316 and resistance at 355 and 375. For MCX copper support is found at 323 and 311 and resistance at 354 and 371.
Stock Tips for the Week
Nifty commenced the week on a subdued note on the back of rate hike by the Reserve Bank of India and weak global cues. However, it continued its upward journey after this short correction and managed to close around 5,280 mark. The BSE Sensex and the NSE Nifty added 0.5% each to close at 17,645 and 5,282 respectively.
Banking and the FMCG stocks were in demand, on the other hand, Realty and the Small-Cap stocks witnessed some offloading.
The FIIs continued to be net buyers in the Indian markets; they bought to the tune of Rs21.3bn in the last five days. On the other hand, the DIIs were net seller to the tune of Rs6.58bn.
The Reserve Bank of India (RBI) unexpectedly raised rates for the first time since July 2008 after inflation accelerated to a 16-month high. India’s central bank increased the benchmark reverse repo rate to 3.5% from a record-low 3.25% and the repurchase rate to 5% from 4.75%. The surprise decision comes a month before the bank’s scheduled monetary policy meeting.
FOR THE NEXT WEEK, Upside 5325 is the immediate major resistance for Nifty and if this level is breached, an upward move until 5,375 can be expected. Downside, it can test 5150-5120 levels if the crucial 5180 support level is breached.
Global markets movement will also remain the key factor in deciding the trend for Indian market.
And now some hot stocks for next week:
ALSTOM PROJECTS
Which has closed at Rs. 626.55 in Fridays session, and has given a breakout on the weekly chart. The daily RSI is in strong buy mode. The stock has closed above all its key daily moving averages.
We recommend high risk traders to buy the stock between the ranges of Rs. 620-630 with a stop loss of Rs. 600 for a target of Rs. 680.
TATA MOTORS
100 day DMA has provided good support in Tata motors in last two months. If the market sustains momentum, the stock can post some decent gains.
The stock is witnessing strong accumulation at current level, which suggest that it may eventually result into an upward move from the crucial support line.
A break above Rs. 760 could lead to a fresh up move. The daily RSI has entered into a strong buying mode.
We recommend high risk traders to buy the stock between the range of 745-756 with a stop loss of 732 for a target of 785 and 795.
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Banking and the FMCG stocks were in demand, on the other hand, Realty and the Small-Cap stocks witnessed some offloading.
The FIIs continued to be net buyers in the Indian markets; they bought to the tune of Rs21.3bn in the last five days. On the other hand, the DIIs were net seller to the tune of Rs6.58bn.
The Reserve Bank of India (RBI) unexpectedly raised rates for the first time since July 2008 after inflation accelerated to a 16-month high. India’s central bank increased the benchmark reverse repo rate to 3.5% from a record-low 3.25% and the repurchase rate to 5% from 4.75%. The surprise decision comes a month before the bank’s scheduled monetary policy meeting.
FOR THE NEXT WEEK, Upside 5325 is the immediate major resistance for Nifty and if this level is breached, an upward move until 5,375 can be expected. Downside, it can test 5150-5120 levels if the crucial 5180 support level is breached.
Global markets movement will also remain the key factor in deciding the trend for Indian market.
And now some hot stocks for next week:
ALSTOM PROJECTS
Which has closed at Rs. 626.55 in Fridays session, and has given a breakout on the weekly chart. The daily RSI is in strong buy mode. The stock has closed above all its key daily moving averages.
We recommend high risk traders to buy the stock between the ranges of Rs. 620-630 with a stop loss of Rs. 600 for a target of Rs. 680.
TATA MOTORS
100 day DMA has provided good support in Tata motors in last two months. If the market sustains momentum, the stock can post some decent gains.
The stock is witnessing strong accumulation at current level, which suggest that it may eventually result into an upward move from the crucial support line.
A break above Rs. 760 could lead to a fresh up move. The daily RSI has entered into a strong buying mode.
We recommend high risk traders to buy the stock between the range of 745-756 with a stop loss of 732 for a target of 785 and 795.
Visit www.capitalvia.com for more Stock Tips.
Commodity in COMEX
Gold and Copper Outlook for the Week
GOLD:
NEW YORK GOLD FUTURES DROPPED IN MIXED TRADE ON FRIDAY AS PRE-WEEKEND POSITION-SQUARING MORE THAN OFFSET A WEAKER DOLLAR AND A REPORT SHOWING AN UNEXPECTED INCREASE IN U.S. RETAIL SALES IN FEBRUARY.
TECHNICALS
COMEX GOLD STILL IS IN CONSOLIDATION PHASE AND SUSTAINING BELOW $1150 AN OUNCE, $1150TO $1160 WILL BE A MAJOR HURDLE TO CHANGE THE TREND OF GOLD FOR IFCOMEX GOLD BREAKS THE LEVEL OF $1150 AN OUNCE AND SUSTAINS ABOVE IT , SO COMEX GOLD CAN SHOW A SLIGHT UPWARD MOVE ABOVE $1160/ $1170. AND IF COMEX GOLD DOES NOT SUSTAIN ABOVE THAT THEN BELOW $1079 IT CAN CONTINUE ITS DOWNWARD RALLY.
MAJOR RESISTANCE IN COMEX GOLD IS $1160 AND $1175 AND SUPPORTS AT $1078 AND $1045. MAJOR RESISTANCE IN MCX GOLD IS 17250 AND 17650 AND SUPPORTS AT 16250 AND 15950.
COPPER:
COPPER WAS MOSTLY FLAT ON FRIDAY, TRADING IN TIGHT RANGES WITH DOLLAR DECLINES SUPPORTING PRICES BUT WITH GAINS LIMITED BY WORRIES THAT CHINA MIGHT TIGHTEN MONETARY POLICY AND SLOW METALS DEMAND.
LAST WEEK WE SAW THAT MCX COPPER WAS WORKING IN A NARROW RANGE OF 336 TO 347 LEVELS. STILL COPPER IS NOT SUSTAINING AT HIGHER LEVELS AND FALLING SHARPLY FROM ITS DAY HIGH. IN THE UPCOMING WEEK IF COMEX COPPER SUSTAINS BELOW 329 WE CAN SEE A SLIGHT DOWNWARD RALLY TOWARD THE LEVEL OF 320 TO 316 LEVEL.
FOR THE COMING WEEK COMEX COPPER HAS RESISTANCE AT 355 AND 375 AND SUPPORTS AT 317 AND 287.
IN MCX COPPER RESISTANCE IS FOUND AT 354 AND 370 AND SUPPORTS AT 323 AND 313.
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Stock Tips for the Week
Stock Tips
It was a good week for the Indian markets as the indices after huge consolidation finally gave an upside breakout on account of friendly budget by our Finance Minister Mr. Pranab Mukherjee. The measures which were taken in the budget focused on lower fiscal deficit ahead , implementation of GST and DTC from 1st April, 2011, focus on infrastructure growth in long term and tax relaxation for individuals and corporate. Both the indices the Sensex and Nifty surged more than 1.50% and managed to give a weekly close above their crucial levels of 16200 and 4900. For the coming week our market may take cues from how the global markets pan out. Technically, nifty will continue to face resistance at higher levels of 4970/5040 and will simultaneously find support at 4860/4830 levels. A decisive break of either range of 5040 on the upside or 4830 on the downside will give further direction of the markets. If we maintain above the 5040 mark then further rally may continue up to 5080/5130 levels whereas if the downside support is broken then nifty may drag towards 4780/4740 levels.
Stock to watch for the upcoming week:
Hindzinc: Hindzinc in its daily charts is replicating a bottoming formation. The stock is consolidating in the range of 1125 on the upside and 1065 on the downside. Once the stock gives a decisive breakout above its resistance mark of 1125-1130 the stock can head towards 1165/1190 levels whereas immediate support for the stock is seen at 1095 mark.
Commodity Outlook for the Week
Commodity Tips
Copper:
Technical view:
Copper MCX has broken an important trend channel on the downside, so overall trend in copper is weak. As a natural technical tendency it might go for testing the trend line of the channel which has resistance around 340 area and then correct again on the downside. Major support levels on the downside are 323/318/313.50. A crossover of 345 levels on the higher will doom the chances of correction and the trend then will be positive.
Strategy:
As the overall trend is weak, copper should be shorted on rise to the levels near 338-340 for targets 330/323/318/313.50 or if doesn’t shows a rise it should shorted below 323 levels for targets of 320/318/313.50.
Gold:
International COMEX Gold is currently trading in a range of a symmetrical triangle which is most likely to break to its important supply zone of 1132 level and shoot up.
The up move breakout will of course not be easy as 1129-1132 levels will act as a strong hurdle which needs to be crossed before we confirm an uptrend in gold.
Gold is also forming a inverted head and shoulders which is again signaling a reversal in trend on the positive side.
Strategy:
Long positions can be built in gold above 1132 for targets of 1141, 1147, 1162. However if gold breaks 1088 level on the downside, it dooms the chances of an uptrend in short term.
Silver:
International COMEX silver is also forming a symmetrical triangle, after it had a breakdown from big head & shoulders pattern, overall longer term trend looks negative in silver, but in short term, if we talk about next 1-2 weeks, it might see some corrective rally on the upside if it crosses the major resistance level of 1657.
Strategy:
Long positions can be built in silver above 1657 levels 1680/1695/1725. On the higher 1725-1740 can act as a good supply zone and bears will try hard to take the lead from there and trend can move in a negative direction. So one should be looking to short around 1725-1740 levels on the rise.
Crude:
Technical view:
Crude is overall in bullish trends and is facing strong resistance around 80.50-81 levels.
Beyond $ 81 it can continue the uptrend up to 82.30, 83.90,86 levels. On the downside $ 76 is a major support level and below which the trend can move in the negative direction for targets of $ 74, 72.50, and 69.50.
Strategy:
Long positions can be built above the levels of 81 for targets of 82.30, 83.90,86.
And could be shorted below $ 76 for targets of $ 74, 72.50 and 69.50.
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