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Calls Given Yesterday or before(for 09-08-2012)
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
Hindalco continues to trade up firmly. Increase stop loss from 119 to 121 on closing basis.
Heromoto did hit first target of 1980 in the morning and then came down but closed above 1952. Hence call remains open. Carry forward HeroMoto with stop loss of 1952 on closing basis.
Fresh Recommendations for 10-08-2012
Banks look weak for tomorrow. Axis Bank and ICICI Bank may decelerate further.
I wrote yesterday with concern that “I will keenly watch Dollar Index tomorrow. It may change equations of precious metals and commodities if starts to climb back to previous highs.”. Dollar has indeed showed upside momentum today and Euro has slipped. It is too early to infer any decision from this movement but time and again this sort of moves confirm that Dollar is still in uptrend and if continues to scale higher highs, can cause severe price correction in Bullion and Commodities. Hence, traders should keep one eye fixed on Dollar movement.
As expected, Nifty chose to pull back swiftly for consolidation. Nifty has closed marginally down. As expected, Nifty may test 5270-5280 support level. But, I would still carry my long as Nifty has not closed below 5306.
I would maintain short position. Rupee has closed at 55.41 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.
Silver is at resistance level. Silver tried thrice to breach the resistance of 28.20-28.50 but failed. Let us watch tomorrow. 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.
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