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Fundamental Summary: Crude has been trading in a nice down trend and making new lows every day. Currently it is trading at 3418. Winter season is considered good for fuel sector and crude has been falling during 1 st half of winter session and hovering near $53.23. Falling crude price during winter and holidays season is irrational. We may see good demand during 2 nd half of winter season as winter will be on its peak and would trigger demand. Transportation activates are likely to increase during holidays season that also relates to crude oil consumption and will result in declining inventory and would be a supporting factor in coming days. We will see inventories will start declining during coming months and OPEC may also cap crude oil production which would trigger sharp recoveries in this counter. Technically crude on MCX is forming a bullish butter fly pattern and hints a possible recovery from point D that completes near 127.2% extension of move XA. 1 st accumulation can be ...

Copper has been trending down and forming a bullish wolf wave pattern. Metal has completed all 5 points of this pattern and now recovering from descending trend line support. MACD has been staying in bearish territory but recently it has climbed above its signal line that hints weakening bearish momentum and development of a fresh bullish momentum. Areas of 399 are also supported by 88% Fibonacci correction of a bullish move from 397.85 to 414.90 and 113% extension of recent bullish attempt from point 3 to point 4. MACD cross and presence of Fibonacci ratios near 399 zones suggests a strong support near 400-397 zones. Recommendation: As per chart and explanations above buying copper around 401-400 with stop loss below 397 for targeting 407-415 and more upside might be appropriate in short term, currently trading at 401.35

A bullish AB=CD pattern is visible on silver mcx daily chart. Currently we are trading in leg ‘CD’ of this pattern. Leg ‘BC’ was a counter move that has retraced leg ‘AB’ by 78.6%. In such patterns leg ‘CD’ is always equal to leg ‘AB’ or 127% extension of leg ‘BC’. Silver is now moving downwards to complete final leg ‘CD’ of this pattern that completes at 37593 zones. As per this pattern instrument reverses after completion of leg ‘CD’. Thus we expect a recovery in Silver from the areas of 37600-37500. Stochastic has been staying in oversold territory during the formation of leg ‘CD’ and now leg ‘CD’ is about to complete and oversold reading on stochastic would also prevent bears to enter aggressively and it would help this metal to recover from expected support zones to offload oversold reading. Recommendation: Buying silver on declines around 37600-37500 with stop loss of 37200 for targeting 38400-39000-39400 and more upside might be appropriate in short term.

A perfect Wolfe Wave pattern is clearly visible on daily chart of NIFTY Spot. Index has failed to produce stability above prior high 7808 which is also 5 th point of this bearish setup. A bearish divergence is also clearly visible on MACD and supportive for bears. As per this setup, stability below 7800 zones remains bearish for this stock index and it may try to test 7440 as primary support. Further stability below 7400 would extend this corrective move and retest to 7250-7200 can’t be ruled out. Areas of 7721 and then 7800 will remain crucial to watch and sharp recoveries above these levels may deactivate recent bearish triggers. Recommendation: as per current setup selling NIFTY on jumps around 7650-7700 with stop loss above 7810 for targeting 7440-7300 might be appropriate in next 9-27 days.

Indian markets have started a longer term Bull Run that is likely to remain continue for 2-3 years. NIFTY spot opened with a small gap on Tuesday and closed with positive note. Prices has climbed above resistance line of a flag consolidation and hinting more upside. A hidden bullish divergence is clearly visible on stochastic that is also sporting factor for bulls. We have drawn a dashed trend line by connecting May 30 th low 7118.45 and June 27 th Low at 7482.30 that is expected to provide a good support in coming days. Areas of 7531 and 7480 are likely to remain strong support as these areas are supported 10 days SMA and rising trend line. Resistance is now placed at 7665 and then at 7700 decisive closing above 7700 would call for a rally towards 7900-8200. Recommendation: Staying long or buying Nifty around 7600-7580 with stop loss below 7480 for targeting 7900-8200 and more upside might be appropriate in coming days.

Nifty has been moving in a nice uptrend and closed with a hanging man candlestick pattern in yesterday’s session. Stochastic is producing overbought reading which is marked by green line and preventing fresh bulls to jump in aggressively. Today areas of 7700-7705 will remain important to watch and any closing above that level would extend current bullish move towards 8000 whereas closing below 7700 will be responsible for a short term correction and we may see a retest to 7400-7300 zones in coming days. Currently trading at 7640.