CRUDE -- will it Flare again??

NIFTY seems to be filling back the gap created by the nuclear deal news on Monday. And this gap filling was expected - when the overall trend is down, such gaps will be immediately filled.

Moreover one thing was still more relevant in this case - 'Stand alone Events cannot change market trends'

Going now to CRUDE OIL, which nowadays is on everyone's watch list, we saw a level of 102 being tested. On the MCX the Crude oil touched the equivalent low of Rs 4610/-.



The technical view is that on the MCX, it is likely to take support near the Rs 4500 levels. However in the international markets, it should take support near $ 100. The difference between the local levels and international levels is influenced by the rupee depreciation.

On taking support at Rs 4500/-, one can expect a rebound towards the 5100 price area - indicating correspondingly an 8 - 10% upmove in Crude (in dollar terms).

Happy Trading

CA Rajiv D Khatlawala