STOCKS
Equities have recovered. The crucial supports mentioned yesterday are holding well. However, it will have to be seen if the indices can see a strong follow-through rise from here to negate the danger of breaking below their supports and see a deeper fall. Dow has to rise past 34000 and then 34700 subsequently to avoid a fall back. DAX is holding above 15400 and can remain ranged between 15400 and 15800 for some time. Nikkei has risen above 28500 again and has to see a strong rise above 29500 from here to bring back the bullish momentum. Shanghai can consolidate between 3500 and 3600 for some time. Sensex and Nifty are getting fresh buying below 52000 and 15600 and are continuing to remain relatively stronger among the lot.
Dow (33876.97, +586.89, +1.76%) has recovered sharply and needs to see if it can rise past 34000 from here. 34700-35000 will be a crucial resistance zone which will have to be broken in order to bring back the bullishness into the picture. We will have to wait and watch for a few sessions to get a clear picture.
The support at 15400 has held well and DAX (15603.24, +155.20, +1%) risen back sharply from the low of 15309.44 yesterday. While above 15400, a sideways consolidation between 15400 and 15800 is possible for some time and will keep the broader bullish view intact of seeing 16000-16100 on the upside. As mentioned yesterday, a strong break below 15400 is needed to drag DAX lower to 15200-15000.
Nikkei (28801.67, +790.74, +2.82%) has risen back sharply above 28500. The support at 28000 has held very well. The danger of seeing a deeper fall to 27000-26000 has reduced. A rise past 29500 will completely negate it and bring back the broader bullish view of seeing 32000 on the upside into the picture.
Shanghai (3556.01, +26.83, +0.76%) has risen back towards 3560 as expected. The support at 3500 is holding well. 3500-3600 can be a range for the near-term and Shanghai can move up towards the upper end of this range now. A strong rise past 3600 will be needed to completely negate the danger of seeing a deeper fall to 3450-3425 and resume the uptrend from here itself.
Sensex (52574.46, +230.01, 0.44%) and Nifty (15746.50, +63.15, +0.4%) are continuing to get good buying below 52000 and 15600 respectively. This keeps the broader bullish view intact. A break above 53000 on Sensex and 15900 on Nifty will pave way for a fresh rise to 54000 and 16100 respectively going forward. 51000 and 15400-15300 are the next important supports below 52000 and 15600 on Sensex and Nifty respectively.
COMMODITIES
Precious metals and Copper are stable and may look for a short corrective bounce but we may not say that the fall is over as there could be another phase of decline after the current pause. Crude prices have moved up well and may continue to rise in the near term. Brent and WTI is headed towards $77 and $75 while Gold, Silver and…
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