Key World Stock Markets Briefing
Commentary: Contradictory sentiment regarding the chances of a Fed funds rate hike this year from the NY Fed President and the FOMC minutes have been confusing the markets and kept them in ranges, do not expect a hike until late 2017, if then.
DJIA at 18573.94, +0.12% is stagnant as in the net gainer in the last 8 sessions stands at just 0.2%. As noted earlier, if a fast rise to 18900-19000 is not seen soon, a revisit to 18250-18000 or lower is in view.
DAX at 10537.67, 1.30% retraced to 10500 as expected and now it remains to be seen if the decline ends at 10450 the Key support, a break below opens up further Southside to 10100-10000.
Nikkei at 16714.61, -0.19% revisited 16550 and now may consolidate in the range of 16400-17000 for a few sessions before making the next move. The uptrend remains intact as long as the index remains above 16400.
Shanghai at 3113.82, +0.14% is digesting the recent gains, pausing in the range of 3090-3140, may resume the rally in the next few sessions. The immediate target is 3160-80 but higher targets of 3290-3350 in the next few weeks cannot be ruled out. Major support stands at 3050.
Nifty at 8624.05, – 0.21% has been contained in the narrow range of 8600-80 for the last 3 sessions and a breakout from this range is needed to trigger a trending move in the near term. The Bulls must hold the support of 8550, a failure to mark a new high above 8730 to increase the Bearish pressure; Caution.
Crude Oil, Gold & Silver
Commentary: Crude Oil has defied the expectations of making a Top and continues rally in the face of the production glut, on the back of less than expected US stockpiles, but all other commodities markets are range bound. Expect the rally to end as Saudi will continue to raise production output.
Gold at 1353.30 has been stuck in the range of 1330-60 for the last 9 sessions and until a breakout from this range takes place, no significant directional guidance can be expected. The consolidation may continue for the rest of this week.
Silver at 19.8450 is trading sideways in the range of 19.20-20.70, and has been for the last 6 weeks with no sign of any immediate breakout.
Brent Crude at 49.64 and WTI Crude Oil at 46.77 broke the resistances at 48.50 and 46.00 in a fastrally, now Brent Crude could see 51.00 and WTI Crude Oil 49.00. The signs of strength in these markets must be accepted in here, and until the price action shows fatigue, it is difficult to consider any Bearish scenario near term.
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