Daily Wealth – 24-08-2012

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ALSO FIND INTRADAY UPDATES ON TWITTER. DHAVAL SHAH@TRADINGWEALTH ON TWITTER.

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

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

I continue to hold Siemens with stop loss of 655.

Performance Update of 23-08-2012

BHEL closed marginally up. Call remains open.

Coal India was almost there on target. Coal India made high of 360.35 while target for stock was 361. I booked profit and came out of stock.

Maruti has closed marginally down. Call remains open

Siemens remained up. Call remains open. Buy call was generated on Siemens with closing basis stop loss of 655 on 17th without target.

Fresh Recommendations for 24-08-2012

I am not giving any calls for tomorrow. Traders can continue to hold position as recommended above. Do follow me on twitter, as I would flash calls as and when pattern emerges.

NIFTY

Moves were very similar to previous day. Nifty tried to gain in morning only to give up in afternoon. But, it was visible that downside was calculated and did not hazard general sentiment. Yes, as I am writing, Europe has closed 1% lower and US, too, a percent down.

I would choose to continue with my long position with closing basis stop loss of 5360. Nifty made high of 5448 today, just 18 pointS shy of target 5466. I chose to book partial profit today. I will closely watch Nifty’s move tomorrow. Further upside will depend on strength showcased tomorrow.

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

As expected, Gold has exploded on upside. As said, I had long position with stop loss of 29680 and I said, I am not attaching any target. I will keep position open. I will update as and when exit signal comes.

Last 2 days, ballistic movement of Gold reignites fear of QE3 or further development of sovereign crisis.

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

Silver climbed further 2.7% today, made a high of 57000. I continue to hold Silver. Silver and Gold may correct a bit in next few days just to consolidate before further upside. Targets of 59000 and 62000 for Silver.

Silver is known for wild movements on both the sides. Trade cautiously.

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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