Daily Wealth – 09-08-2012


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 .

Calls Given Yesterday (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.

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

Performance Update

Tata Steel hit the target of 414.

Hindalco hit the first target of 122. In fact, it went up to 123 before closing tad down. Increase stop loss from 117.8 to 119 on closing basis.

Carry forward HeroMoto as Call is still open.

Fresh Recommendations for 09-08-2012

I would build fresh positions only after seeing tomorrow’s trend. I will send fresh calls through Yahoo messenger. If you are still not on my Yahoo Messenger list, send request at dcshah76

I will keenly watch Dollar Index tomorrow. It may change equations of precious metals and commodities if starts to climb back to previous highs.


Nifty could not close above 5345. Nifty seems to be in twilight zone. It can either correct after decent run to the level of 5270-5280 or even after facing resistance, may attempt to breach 5345 successfully. Most probable move is swift pull back for consolidation. Yesterday, we had increased stop loss from 5245 to 5306. I will maintain the stop loss level of 5306 on closing basis.


I would maintain short position. Rupee has closed at 55.53 tad below to stop loss level of 55.55. There is a possibility that Rupee may find support between 54.5 to 54.90 band but I would hold short trade with a target of 54.28 and 53 with stop loss of 55.55 on closing basis.


Gold continues to trade in narrow range showing indecisiveness. Range continues to be 1585-1630. Closing above 1630 should confirm upside breakout. I will stay away till Gold breaks out either side.


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.


I hold long position in Silver with closing basis stop loss of 27.65. This is a risky trade.


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


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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