Nifty: Crude Seems To Curb All Bullishness, While Steady Gold Shows Uncertainty

Nifty: Crude Seems To Curb All Bullishness, While Steady Gold Shows Uncertainty

Satendra Singh  | Sep 16, 2019 23:55

On analysis of the movements of Nifty 50, in different time frames, I find that the announcement of supporting measurers to ease slowdown of Indian economy seems to take a back seat; amid prevailing fear of retaliatory moves since the geopolitical eruption of international tensed atmosphere which developed after Saturday's attacks on key Saudi oil facilities. No doubt that this resulted in steep upward move of WTI Crude Oil and Brent Crude Oil. I find that this sudden spurt in oil prices looks evident enough to extend multiple problems at international level. The Aramco-owned Abqaiq processing complex and Khurais oil field account for nearly 6 million barrels per day. The Wall Street Journal quoted unidentified Saudi officials as saying that they expect to have a third of output, or 2 million barrels per day, restored by Monday and to rebalance supply in the coming days. But Reuters cited other Saudi insiders as saying that return to full oil capacity could take "weeks, not days.”

Escalation now looks virtually certain after Saudi officials corroborated U.S. claims that the weapons used in the attacks were Iranian and not – as earlier reported – launched by Iranian-backed Houthi rebels in Yemen. U.S. President Donald Trump had indicated over the weekend that U.S. forces were prepared to strike Iran directly in retaliation, pending confirmation of its intelligence by Saudi Arabia.

I find that this growing uncertainty seems to impact mostly the Asian countries, particularly to India and China – big consumers of crude oil; and their economies will feel the negative impact of the higher crude oil price at the most; if the current international situation becomes more tensed and the crude oil supply does not return to normal for some more time. I find that the steady moves of Gold futures also look evident enough to reflect the concern over this grave situation; because if Saudi takes further retaliatory action against Iran, then this retaliation may turn into a real war. In that case any spike in crude oil could be sustained; feeding the risk of an economic recession.

Finally, I find that amid such growing uncertainty, not only the U.S. equity indices; but Indian equity markets can feel the jolting moves of extending bearishness for a long time during the upcoming week. I find that if the Nifty 50 stats the September 17th, 2019 with one more gap-down; series of steep downward moves may push the Nifty 50 below the levels of 10,748. I find the need of the hour is to keep a vigil eye over the developments at international news flow. For watching my videos on in-depth analysis of Nifty 50 and Bank Nifty, subscribe to my YouTube Channel “SS Analysis”

Nifty 50

Nifty 50 - Daily Chart
Nifty 50 - 4 Hr. Chart
Nifty 50 - 1 Hr. Chart

S&P 500

S&P 500 - Daily Chart
S&P 500 - 4 Hr. Chart
S&P 500 - 1 Hr. Chart

Disclaimer

1. This content is for information and educational purposes only and should not be considered as an investment advice or an investment recommendation. Past performance is not an indication of future results. All trading carries risk. Only risk capital be involved which you are prepared to lose.

2. Remember, YOU push the buy button and the sell button. Investors are always reminded that before making any investment, you should do your own proper due diligence on any name directly or indirectly mentioned in this article. Investors should also consider seeking advice from an investment and/or tax professional before making any investment decisions. Any material in this article should be considered general information, and not relied on as a formal investment recommendation.

Satendra Singh

Related Articles

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Hari Kul
Hari Kul

excellent   ... (Read More)

Sep 17, 2019 17:27 GMT· Reply
dhruv jethva
dhruv jethva

sir you tell all level and get the result.your level was amazing ...  ... (Read More)

Sep 17, 2019 03:16 GMT· Reply
Depak Sharma
Depak Sharma

Sir nice explain .please highlight particular stocks also  ... (Read More)

Sep 17, 2019 03:13 GMT· Reply
Depak Sharma
Depak Sharma

Sir nice explain .please highlight particular stocks also  ... (Read More)

Sep 17, 2019 03:13 GMT· Reply
Discussion
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (UK) English (Canada) English (Australia) English (South Africa) English (Philippines) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 中文 香港 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
NoYes
CancelYes
Saving Changes

+