Silver dropped by Rs. 220.00 and settled at 52743 from previous trading day steady and could trade in a narrow range ahead of a European Union summit, which is unlikely to deliver new measures to tackle the region's debt crisis and may prompt investors to turn to the safety of the US dollar. German Chancellor will pit herself against France and Italy on Thursday at an EU summit that could shape the euro zone's future, insisting they must put the bloc's fundamental problems ahead of pleas for emergency action. The euro stayed on the back foot though its downside was seen limited in case an impending summit of European leaders surprise markets with concrete measures to tackle the region's debt crisis. Meanwhile, the yield on Spanish 10-year government bonds was at 6.85%, nearing the critical 7% threshold, which is widely viewed as unsustainable in the long term. Moody’s ratings agency downgraded 28 Spanish banks earlier in the week, after the country formally requested up to EUR100 billion to recapitalize its struggling banking sector. Market sentiment remained fragile ahead of an EU summit due to begin on Thursday, amid worries the talks will not result in any effective steps to strengthen fiscal integration and allow the euro zone’s rescue funds to buy government debt. Now support is at 26.60 and below this can see 26.20 levels. Now technically market is getting support at 52382 and below could see a test of 51956 level, And resistance is now likely to be seen at 53316, a move above could see prices testing 53824.

SILVER

Silver trading range for the day is 51934-53802.

Silver dropped on worries that a global economic slowdown triggered by a worsening debt crisis in Europe.

Investors remained cautious ahead of a highly anticipated European summit in Brussels.

Rupee depreciation is holding up bullion prices even as it is falling in the US markets.

Silver is trading below 50DMA, which is at 54342, with intraday support seen at 51934 and resistance at 53802.

BUY SILVER JULY ABV 52850 SL 52600 TGT 53000-53240. MCX