Daily Wealth – 22-08-2012

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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.

Nifty continued to behave as expected with upside bias but some recommended stocks could not sustain levels and stopped out.

Open Calls Given Previous Day or Before

I continue to hold Rpower with stop loss of 91.60 and Siemens with stop loss of 655.

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

Performance Update of 21-08-2012

Siemens open

Rpower stopped out

Jindal steel stopped out

Tata Steel stopped out

Fresh Recommendations for 22-08-2012

Buy BHEL with stop loss of 228.70 on closing basis for target price of 236-243. BHEL has potential to rally beyond target price given here. CMP: 231.85

Buy Coal India with stop loss of 349 on closing basis for target price of 361. CMP: 352.45

Maruti is in consolidation, can give upside breakout. Stop loss should be placed at 1171. CMP: 1188

Buy PNB with closing basis stop loss of 717 for target price of 730 -738. – A risky trade.

NIFTY

Nifty has continued to scale newer highs as expected. Hence, I will continue to recommend to hold Nifty long position of the buying price of 5145 with closing basis stop loss of 5360. Immediate target remains 5466 and possibility of 5600 increases.

USDINR

I had short position but Stop loss was hit on 14th . But, I continue to expect further appreciation of rupee in short term.

GOLD

I wrote on 16th …

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.

As on every dip, Gold is coming up with higher lows, probability of upside breakout increases. I may add small position.

Update

Gold has given upside breakout and, as I said that, I may add small position, on 16th. I will increase buying. For INR gold price, I would use closing basis stop loss of 29860. I am not attaching target. I will keep position open with said stop loss. I will update as and when exit signal comes.

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

I wrote on 16th

Silver is trading at upper resistance of 28.25.I have long position with closing basis stop loss of 27.65. I recommend all investors to add position in silver with mentioned stop loss for price target of 28.80 and 29.50.

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.

Update

My readers know, I have Silver position open even before I decided to add small Gold position expecting break out on upside. Silver is up close to Rs. 1800 from buying price. In international market, it is up with close to $ 2 gain since I initiated buy.

CRUDE

Crude is trading at $ 97 now. I had added Crude position around $ 93. I raise the stop loss from 92.7 to 94.6.

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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