Key Stock Indexes, Crude, Gold & Silver Markets Briefing
$DIA, $GLD, $SLV, $OIL, $USO, $CU
Commentary: Signs of tightening liquidity is visible as the central bank of China refrained from injection short-term funds into the banking system. This could have led to a fall in stock prices Tuesday.PE
Shanghai (3245.91, -0.22%) came off slightly yesterday but is testing important support on the daily charts. A bounce back towards 3275 and higher could be expected in the near term.
Strong US Consumer confidence data seem to have boosted a rise in Dow (20701.50, +0.73%) which rose from levels near 20520 yesterday. A rise back towards 21000 may be expected in the next couple of sessions.
Dax (12149.42, +1.28%) looks bullish for the near term. There is scope of rising towards 12220-12300 levels in the medium term.
Nikkei (19197.35, -0.03%) could move up towards 19400 and higher in the near term. Cues from the US-Japan yield spread indicate some up move in the near term. But on a medium term, Nikkei remain consolidative within 19600-18600 region.
Nifty (9100.80, +0.61%) is holding well above immediate support near 9000. A couple of sessions could be spent in the 9000-9200 region before a fresh rally is seen. Below 9000, supports are seen near 8990 and 8960 respectively. Overall near term looks bullish.
Gold, Silver, Copper & Crude Oil Markets
Gold (1248) is trading below 1264, which is the upper band of its recent trading range of 1213-1266. A close below 1239 could open up lower supports at 1213 and 1200 respectively.
Silver (18.07) is also trading within the range of 17.81-18.35.In case of any fresh buying momentum in copper above 2.70 could restrict the downside in the near term for silver. The trend is neutral in the near to medium term time frame for bullion thus sideways consolidation could be seen.
We would like to repeat our forecast dated 23rd March-17 on Copper (2.66). “Copper (2.62) found support at 2.57 levels. While 2.57 hold, a bounce to the interim resistance 2.68-70 can be seen. Only above 2.70, higher resistances of 2.80 can come into consideration. In the medium term 2.55-57 are going to be a strong support now and the chances of a close above 2.70 have increased.”
Both Brent (51.45) and WTI(48.54) have found support and trading within the range of 50-52.80 and 47-50.30 respectively. This bounce was expected and it may continue for a few sessions more. We will remain bearish while Brent and WTI are trading below of their resistances of 52.8 and 50.30 respectively. Market will remain volatile today as U.S. weekly crude oil inventory data will be published at 8:00 p.m IST.