Daily Wealth – 08-08-2012

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Dear Investor

You are receiving Free Daily Update service called Daily Wealth. It will include technical updates on SPOT NIFTY, Stocks from NIFTY 50, USD/INR, GOLD, SILVER and CRUDE.

Calls given to Subscribers would not be part of this service.

Please understand, Intraday movement of Indices and Stocks change frequently and with that technical updates, too. I will post intraday updates through Yahoo Messenger. Hence, willing traders and readers can send request to Yahoo ID- dcshah76 to add their IDs .

Technical Updates for 08-08-2012

Carry forward TATA Steel Position with stop loss of 396 on closing basis. Recommended price: 404, Closing Price: 406. Target : 414

BhartiAirtel stopped out today.

Fresh Recommendations

Buy Hindalco with stop loss of 117.8 on closing basis for target price of 122-125. Current Price: 118.8

Buy HeroMotoCorp with stop loss of 1942 on closing basis for target price of 1980-2011. Current price: 1952

NIFTY

On 6th, I had said that “Nifty would require to close above 5245 to maintain further uptrend tomorrow. With that it will open upside space up to 5345”. Today, Nifty faced resistance around that level and closed at 5336.70. Those having carried long positions should enhance stop loss to 5306 from 5245. For, fresh long positions wait for Nifty to trade above 5345, it will open upside space up to 5466.

USDINR

As expected Rupee has appreciated but still within the band of 55-57. It has closed at 55.06. There is a possibility that Rupee may find support between 54.5 to 54.90 band but I would initiate short trade with a target of 54.28 and 53 with stop loss of 55.55 on closing basis.

GOLD

Gold is narrowing its range further from 1570-1630 to 1585-1630. It is coming closer to the day of reckoning. Closing above 1630 should confirm upside breakout. I will stay away till Gold breaks out either side.

Broadly

In international market, GOLD is moving in a range of 1630-1570. Gold has been consolidating in this range since May, 2012. To me, it seems that Gold has formed base here and Gold can head for a new rally. But, Dollar index has remain firmed since last few months and may go up further in coming days. Under that scenario, Gold may prefer to remain in this range for longer period or may decline, too. Hence, I would wait for Gold to give me signal before I initiate trade.

SILVER

Silver is trading around resistance. If silver closes above $28.20 today. I will initiate long position with closing basis stop loss of 27.65. This is a risky trade.

Broadly

In international market, SILVER has remain in very broad range of $35-27 since September, 2011. It looks SILVER can initiate uptrend. But, I would wait for couple of days closings before I initiate trade. Those, having deep pockets and want to buy SILVER, should initiate trade with stop loss of $26.85 on closing basis. I would initiate long trade in SILVERM of September contract, once it trades firmly above 53400 with stop loss of 53220.

CRUDE

Crude is trading above $93. Rally may extend up to $97. I do not advise fresh positions.

Regards

Dhaval Shah

Blog: https://investmentacademy.wordpress.com/

Disclaimer: Daily Wealth is a free daily investment newsletter published by Investment Academy. This publication does not provide individual, customized investment or trading advice. All information is based upon data whose accuracy is deemed reliable, but not guaranteed. Performance returns cited are derived from our best estimates, but hypothetical as we do not track actual prices of customer purchases and sales. Author might have open positions in the stocks and Indices recommended above.

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