Daily Wealth – 17-09-2012

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Note: Due to sad demise of one of family members, I could not send updates for last 13 days.

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.

Open Calls Given Previous Day or Before

No Positional calls given.

Performance Update of 30-08-2012

Intraday Calls given through Twitter and Yahoo Messenger

Script Recommend

Ded Price

Stop

Loss

Target

1

Target

2

Exit

Call

Lot

Size

Profit

/Loss

PNB 662.3 659.8 665 669 669 250 1925
ICICI bank 911.3 910 915 919 910 250 -325
NTPC 171.2 170.6 172.3 172.3 2000 2200
Coal India 359.1 358 362 358 500 -550
IDFC 135.2 134.65 136.5 137.5 136.3 2000 2200
Maruti 1145 1144 1155 1144 250 -250
Profit/Loss 5200

Fresh Recommendations for 17-09-2012

Buy IVRCLINFRA at market price for target price of 46.50. CMP: 41.55. Stop loss 39.90 on closing basis.

Buy Crompton Greaves for target price of 112. CMP: 107.50. Stop loss 105.5 on closing basis.

NIFTY

Nifty has rallied close to 2.5% on 14th on the back of quantitative easing in US and partly due to further cuts in Diesel and Cooking Gas subsidy, which would improve fiscal deficit by just Rs. 20000 crore. Govt is expected to embark on close to Rs. 6 lac crore fiscal deficit this year. All efforts, Govt is making are just to ensure that India is not declared “JUNK” by global rating agencies.

Another reason for this tough decisions is – Govt will face General Election in 2014. If you look at Govt finances, Govt has no room to declare social welfare schemes if it is run at 6-7% fiscal deficit. All Govt is trying to do, is to increase revenue this year to spend it back for election agenda in 2014.

Nifty has given good breakout, I expect it to continue upside. 5600-5650 looks at arms distance now. Actually, this breakout has open upside possibilities of 5860 and 6163. Hence, if you are long, hold on position and if not, you can create a fresh long position on Monday with said targets. Nifty is in overbought zone hence it may consolidate for a day or two. But, it would not disrupt upside momentum.

USDINR

I had maintained stand, that I would wait till it breaches band of 55-56 and will play the side it breaks out. I expect it to strengthen further. 53 looks very much achievable.

GOLD

Gold has scaled newer highs in past few days in Indian rupee. Gold now looks overbought and indicates consolidation of few days around this levels.

Now, it may happen that for some days, Gold will not translate international prices as it had been doing for past many months. Yesterday, Gold and Silver corrected just because rupee appreciation. And, as I said Rupee will continue to appreciate for some days, Gold may not show upside even if in international market it rises. But, I am not asking to sell the long positions. Hold on long positions. We may get chance to add more as it consolidates.

Gold should find support around 31300.

SILVER

As expected, Silver has outperformed Gold. I expect, this outperformance to continue. Hold on long positions. Silver will consolidate around this level. Silver should find support between 63000-62000.

CRUDE

I will remain sideways. Will update as opportunity arises.

Note:

Please understand, Intraday movement of Indices and Stocks change frequently and with that technical updates, too. I will post intraday updates through Twitter(dhaval shah@tradingwealth) and Yahoo Messenger. Hence, willing traders and readers can send request to Yahoo ID- dcshah76 to add their Ids on Yahoo messenger or may follow me on twitter .

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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