Dollar index erased its 2 day gain and has settled lower today trading near 94.60. In spite of dollar index’s sharpest pullback after touching technical resistance mid-month at 97, Indian Rupee continues to fall against Dollar. Indian Rupee is trading at all-time low and there seems to be no respite. Spike in crude oil prices and demand for US Dollar by Indian oil importers have added extra pressure on our currency.
Buy Nickel
Target: Rs 970
Stop loss: Rs 920
Nickel is the only base metal that has failed to rally along with other base metals. Last week we saw all base metals rallying expect Nickel. The emergence of Bullish engulfing pattern on Tuesday along with price action sustaining above the midpoint of bullish engulfing pattern suggests we may see an increase in participation in Nickel. RSI_14 also is trading above 50 indicating buying momentum is picking up. We recommend long position with expected target till 970 and stop loss of 920.
Buy Lead
Target: Rs 151
Stop loss: Rs 143
Last week, we anticipated a breakout in Lead and initiated buy call. This week too we recommend a long position in Lead. Lead prices have settled above its short-term moving average of 13 and 20 after 27 June. Momentum looks strong as RSI_14 is trading above 54 and Stochastic oscillator also have generated crossover buy signal. We recommend a long position in Lead with expected upmove till 151 and stop loss of 143.
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