Equity indices: The Nifty has hit 5200. This was level that we have been advocating throughout the last few weeks and we have been able to project the trend quite accurately... again. This is a time for us to step back a bit and observe what the next move would be. The possibility of a short term pull back look quite bright at present as medium term technicals are reading at extremely oversold levels. This can result in a technical bounce over the coming weeks. However, a major trend reversal may be some time into the future. The Midcap index did reach below the 7300 level. It is a wait & watch for now, with a positive bias.

Global Outlook

Commodities: In line with our view, metal prices have consolidated for the major part of last week. Copper and Zinc look set to target higher levels. Aluminium is trading sideways and is a wait and watch for now. Gold and Silver are attempting to move higher, although Silver looks stronger as compared to Gold. Crude can see further weakness below the level of $87.50.

Currencies: The upmove in the USD/INR may continue and it can target higher levels closer to 46.00. EUR/USD is trading sideways and we prefer to wait and watch. Trend of USD/JPY looks good for a target of 84.50 or beyond. The continued uptrend of DXY can see it closer to 79.00 level.