Dear Members,
Markets performed very well on a mixed astro day, which is a great sign for investors. The market has already begun an Airavata cycle as of 11 April. We have been recommending that you keep buying stocks, and despite the market's weakness, this advice has proven very productive. S&P and NASDAQ have already started trading above our first important target, which was mentioned on 7 April. Now, once again, the possibility of NASDAQ testing a new high and by the end of this year 25888, in the coming time we don’t see NASDAQ going below 20188 level, so risk reward ratios are significant as in the longer term we see NASDAQ 43000 to 48000.
A fantastic era is pending for markets in the coming time, and traders must be looking forward to this prediction coming true. However, many are waiting for NVDA earnings, as it is the most important one to give direction to the market from tomorrow. Yes, the world is slowly starting to adopt AI, and how to implement it in various areas, and how to monetize. The big picture is fantastic, what is coming in the future, which we have been predicting for many years. We knew a new wave of AI technology would dominate the future world, and now we are at the doorstep of that era.
Let's focus on NVDA today. After the market, NVDA will announce its earnings. Our view is positive for NVDA, we are recommending buying NVDA, even though Jensen is not that optimistic about this quarter's earnings due to the Chinese portions of revenue not being there due to the USA restrictions.
I expect narrow trading ranges following the earnings announcement. If the stock falls on initial reactions, then we must take buying positions; if the stock rises sharply, then book profit, but overall, the outlook is excellent for the subsequent earnings. Guidance will be mixed to optimistic.
We recommend buying Call options of $140 at $ 2.50, and if you are already holding NVDA, consider taking out options of the $130 level, which is currently trading around $2.41. Overall, our view is bullish for NVDA, and we must watch the $151.55 level close on the higher side. The NVDA move will help semiconductors and AI stocks. Our next year’s target for NVDA is $218 level. We don’t expect NVDA to drop below the $118.00 level. Most of our targets are always fulfilled, and NVDA will achieve its target.
The other vital earnings today will be CRM, HPQ, SNPS, S, PSTG, VEEV, A, and NTNX. Out of all these stocks, we like VEEV and NTNX, as these stocks have the potential to move sharply higher. CRM and HPQ are also expected to report strong earnings. SNPS, S, PSTG, and A will have a mixed trend after the earnings release.
Before the market opens BBY and FUTU will announce earnings, and both these stocks should act positively post earnings.
The FOMC meeting minutes will be released today, as expected, and will likely show a sign of the Fed being ready to cut rates.
Tuesday metals traded negatively as mentioned in the weekly and daily letter. On Wednesday, the selling will be on the higher side in precious and base metals.
Oil prices will move further lower today, so take selling positions in oil as well.
Grains and softs will struggle; stay away from any buying today.
Currencies lost value on Tuesday as predicted. We are recommending starting to add aggressive long positions in the Dollar and short positions in frontier currencies.
The Thirty-Year Bond gained value; one should start adding more long positions.
Bitcoin and Crypto will act far better, keep adding long positions as Friday onward, a big move is expected. We are still expecting Bitcoin to test the $148888 level.
Thanks & God Bless
Mahendra Sharma