STOCKS
Dow has broken above 35100 and will be bullish to test 36000 while this break sustains. DAX and Nikkei have room to move up within their 15300-15800 and 27000-29500 range respectively. Shanghai has tumbled below 3500 but has strong support at 3400 which can hold and keep the broader uptrend intact. Sensex and Nifty hovers at the upper end of their 52000-53200 and 15600-15900 range respectively. We expect them to break their ranges on the upside and see a fresh rally. The outcome of the US Federal Reserve meeting tomorrow will be crucial to watch. Any hint on stimulus tapering could trigger sell-off/corrective fall in equities. We will have to wait and watch.
Dow (35144.31, +82.76, +0.24%) has broken above 35100 as expected. While this break sustains, our bullish view is intact of seeing a rise to 36000 and higher levels in the coming days. 34000 can itself be a good support now and then the deeper one is at 33000.
DAX (15618.98, −50.31, -0.32%) oscillates around 15600 and has room to move up towards 15800 in the near-term. The 15300-15800 range remains intact. We expect DAX to break this range on the upside and rise to 16000-16200 eventually going forward.
Nikkei (27977.07, +143.78, +0.52%) is moving up within the 27000-29500 range. A strong rise past 28000 can take it to the upper end of its range. The bias is bullish to see an upside break above 29500 and see a rise to 31000 and higher levels over the medium-term. As mentioned yesterday, only a break below 27000 will turn the outlook bearish to see 26000 on the downside.
Shanghai (3463.76, −3.69, -0.11%) tumbled to a low of 3424.74 yesterday and has bounced from there. It can consolidate in a range of 3400-3500 for some time. 3400 is a strong support while above which the long-term view is bullish to see a break above 3625 and a rise to 3700-3800. Only a break below 3400 will negate the bullish view.
Sensex (52852.27, -123.53, -0.23%) has come-off from the high of 53103.42 yesterday. The 52000-53200 range remains intact for now. We expect Sensex to break 53200 and rise to 54000 and higher levels going forward. In case if 53200 continues to hold, the sideways range can continue for some more time and the expected rise to 54000 will get delayed.
Nifty (15824.45, −31.60, -0.20%) is retaining its 15600-15900 range for now and is stuck in a narrow range of 15800-15900 within it. We retain our bullish view of seeing an upside breakout of this range above 15900 and see a fresh rise to 16000-16200 in the coming weeks.
COMMODITIES
Crude prices trade higher today with Brent having scope to test 75-76 while WTI has resistance at 74 from where rejection is expected in the near to medium term. Gold and Silver have dipped today and could fall to supports of 1780 and 25 but it would be important to see if the respective supports hold and produce a bounce back to higher levels or pave way…
Read More: Market Morning Briefing: Aussie Has Immediate Resistance At 0.74