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Open Calls Given Previous Day or Before
Performance Update of 27-09-2012
Intraday Calls given through Twitter and Yahoo Messenger
Fresh Recommendations for 28-09-2012
I will issue calls through Yahoo Messenger and twitter.
I agree, Nifty is playing very erratic move since last 4 days. And, as I said earlier, Traders lose more in consolidation period than what they earned in Bull period. I think, since expiry is over, market should move decisively on either side, tomorrow.
Today’s closing does not change the expectations. 5550 -5600 remains support area. I will reverse the strategy only if Nifty closes above 5703 tomorrow.
We are in a phase wherein market is discounting everything through the lens of monetary easing. E.g. today came the data of USA GDP and it was lower than expected.
“Real GDP growth was unexpectedly revised down for the second quarter. The Commerce Department is now estimating growth at a 1.3 percent annualized pace, compared to the second estimate of 1.7 percent and advance estimate of 1.5 percent. Analysts forecast a 1.7 percent growth rate. The latest number is sharply slower than the 2.0 percent seen in the first quarter and especially the 4.1 percent boost posted for the fourth quarter of last year.”
Very natural expectation after the data was that Market should be nervous. But, US market is up because this event is seen through Fed’s policy lens. i.e. Market is sensing that It will lead to even more printing at Federal Reserve because of lower revision of GDP. Let me tell you, we have come too far in discounting false and unhealthy indicators and correction would be equally brutal.
Rupee’s rise looks very fundamental this time. Since 14th Sep, US Dollar Index has been retracing the fall. And, in Similar period Rupee has continued appreciation!! Normally, rising Dollar Index should depreciate rupee but the measures announced this time has sent strong message abroad.
Rupee has been trading around 53 now, it breached the level of 53 during the day. I am holding on my speculative short position which was initiated with a view to take the benefit of any such wild move of breaching 53. Yes, if Rupee Closes below 53, we can easily see the level of 52.
Gold remains highly volatile. Yesterday, it was down to the level of 1738 and today back to above 1772. Let us wait for closing. I had indicated that I would be ready to buy Gold now as it had slipped to the level of $1738 and that has extended good support.
In Indian price, Gold has been moving around 31300. I will buy in Indian price if Gold closes above 31440.
I have been reiterating since rally started in precious metals that Silver will continue to outperform Gold by the margin of 1.5 times. I started buying Silver yesterday as it closed above 62350.
Be cautious. Silver is favourite metal of speculators. It is double edged sword. Follow levels very carefully.
I will remain sideways. Will update as opportunity arises.
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 .
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