Trading Radar For July 8: Titan, Tata Motors, M&M, Indian Hotels And JSW Infra Are On The Watchlist
Technically Silver market is getting support at 39548 and below same could see a test of 39384 level, and resistance is now likely to be seen at 39978, a move above could see prices testing 40244.
Silver on MCX settled down -0.32% at 39711 edged lower in yesterday sessions as US inflation data cemented expectations the Federal Reserve will raise interest rates in December. Yesterday US data showed a rise in retail sales data last month and an uptick in underlying inflation which cemented expectations for further US interest rate hikes.
This helped the US dollar to bounce off lows while the outlook for US tax cuts that could stimulate economic growth was clouded after US Senate Republicans created new political obstacles by linking the repeal of a key component of Obamacare to the tax reform plans. Although silver has seen relatively low volatility as of late, there are some in the markets who believe that the best is yet to come.
In fact, there was a recent splash of news when TD Securities deemed silver a great buy for 2018, which suggests that the current lull in activity for silver should be an interesting opportunity for silver bugs looking to get in before another big leap for the metal.
As per TD Securities report they aims for $19 and higher for next year, the current price of silver stands at about $17.10, give or take a few cents as it fluctuates throughout the day. That’s nothing new—nor is it particularly surprising for those who have watched the precious metal throughout 2017.
The relatively stable cycles and low volatility for the metal have been uncharacteristic for silver, which tends to see bigger price swings as a percentage of its price than does gold.
Trading Ideas:
--Silver trading range for the day is 39384-40244.
--Silver settled down below key resistance as investors continue to see uncertainty about next year's outlook for interest rates in the US and Europe.
--Dollar gained on signs that fourth quarter economic growth remained solid, cementing investor expectations that the Fed will raised rates.
--Global silver production will take a big hit this year due to several factors including, falling ore grades, mine closures, and strikes at various projects.