Outlook on Gold and Markets II Details Explained

Ventura Securities says that after last Friday’s sell off, Comex Gold is trading in the range of $1820 to $1870 levels. Prices are likely to trade in this range till the time they break on either side of the range. For the coming week, the idea would be to go long above $1870 level or sell below $1820 level. 

MCX Gold has been trading in the range of 48500 to 49500 levels. The key averages on daily charts stand near 50000 level with 100 EMA level placed near 49950 and 20 MA level placed near 50100 level. Prices are likely to consolidate on the lower side till prices cross these levels on a closing basis.

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Religare Broking says that Markets managed to end marginally higher amid volatility last week. Initially, the bulls were in action, taking cues from the upbeat earnings announcement from the IT majors and supportive global cues. However, mixed macroeconomic data and caution in the global markets in the final sessions induced participants to book some profit off the table. Consequently, the Nifty index settled at 14434, after making a high at 14653. It was a mixed trend on the sectoral front wherein auto(+4.49%) outshined the others with strong margins. On the other hand, the broader indices remained subdued and ended with a cut of 0.5-1%. 

With no major data, the focus would remain on the earnings season and some of the known names like Mindtree, Bajaj Finserv, Bajaj Finance, Havells, HDFC AMC, Bajaj Auto, Jindal Steel, JSW Steel, SBI Life and Yes Bank will announce their numbers along with several others. On the global front, the inauguration of the US President on January 20 will also be closely watched. 

Markets will first react to the HDFC Bank’s numbers in early trade on Monday. Indications are in the favour of the corrective phase which could be time-wise or price-wise. In case of a further slide, Nifty would find immediate support at 14,250 and then 14,100 zone. Since the overall trend is up, it’s prudent for the participants, those who were sitting on the sidelines for correction, to utilise this phase and buy quality stocks on dips. On the other hand, it would be difficult for traders to manage positions as both indices and stocks usually see volatile swings during the corrective moves and earnings season has further added to the choppiness. It’s prudent to avoid naked leveraged positions for now and prefer hedged strategies.