Yesterday due to global selling, our markets was on the way of selling as well. We Have seen Nifty future for the first time on daily chart has broken below the trend line which has been acting as support from the month of June. So I am expecting some selling in the markets, as being a technical reason. Even Indian rupee has depreciated against USD and reached 54 mark again. Situation after flop 2G auction is that government will find it very difficult to meet the deficit target of 5.3%, hence another possibility of slow GDP growth in coming quarters. Precious metals like gold and silver may turn bullish as inflation in US economy has risen and also we are near to the festive and holidays season in December, where high personal (Consumer) spending is most likely to further ignite inflation. Traders and investors always buy Gold for its inflation hedge capabilities, hence I am bullish on gold and silver in short term.
Nifty future trading Idea for next week: I will be selling short on Nifty future below 5540 for positional target of 5430 and stop loss placed few points above 5600 level. Also I will be flipping my position to go long on nifty future around 5425 level for a target of 5495 level with stop loss few points below 5400 zone. Article published on 17 November 2012.
About
Leave a Reply