Daily Wealth – 16-08-2012

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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.

Open Calls Given Previous Day or Before

Buy Jindal Steel with closing basis stop loss of 407 for price target of 415-426. Current Price: 407.60

Sesa Goa, Rpower, Siemens, look positive. I would suggest to keep adding more positions in Hindlaco on every dips.

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

Hindalco continues to trade up firmly. Keep stop loss of 121 on closing basis. I will also increase target price from 125 to 130.

Performance Update of 13-08-2012

Sesa Goa was down 1 %, Rpower increased 1 %, Siemens closed 1.2% down.

Jindal steel closed 2.5% up. Jindal Steel achieved first target of 415.

Hindalco stopped out as it has closed below stop loss of 121. Those who have maintained position can hold it with stop loss of 119.7 as it has found support around that level 3 times in a day.

Fresh Recommendations for 14-08-2012

I continue to hold Sesa Goa with stop loss of 191.2, Rpower with stop loss of 91.60 and Siemens with stop loss of 655.

Hold Jindal steel.

Dollar index is firming up further. 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.

NIFTY

Nifty showed strength on 14th and closed above 5345 at 5380. It is in line with expectation. Henceforth, 5345 should act as good support. I will continue to recommend to hold Nifty long position of the buying price of 5145 with closing basis stop loss of 5331. Immediate target remains 5466 and possibility of 5600 increases.

USDINR

Stop loss was hit. I would stay away.

GOLD

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.

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 continues to trade in range. Silver tried thrice to breach the resistance of 28.20-28.50 but failed.. I hold long position in Silver 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 would take risk to buy Crude with stop loss of 92.70. Only deep pocket investors should venture.

Note:

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 .

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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