Daily Wealth – 03-10-2012

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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.

Open Calls Given Previous Day or Before

Calls given through Yahoo Messenger and Twitter

short ICICI bank on every rise with stop loss of 1069, target 1020

dcshah76: short PNB with stop loss of 840 for target price of 821-817

dcshah76: buy Ranbaxy with stop loss of 529 for target price of 540

dcshah76: Gold and Silver have been sliding as I expected and said in today’s Daily Wealth report. Gold should find support anywhere between 30750 to 31070.

dcshah76: Ranbaxy is up Rs. 5 from recommended price. Exit partially around 537. those who want to hold it for more gains can also target 549

dcshah76: Ranbaxy’s target of 541 achieved

Performance Update of 01-10-2012

Script Recommend

Ded Price

Stop

Loss

Target

1

Target

2

Exit

Call

Lot

Size

Open Gain/Profit

/Loss

Ranbaxy 531.5 529 541 541 500 4750
ICICI Bank 1054 1069 1020 Open 250 1000
PNB 833 840 821 817 Open 250 300
Total Gains 6050

Fresh Recommendations for 03-10-2012

I will issue calls through Yahoo Messenger and twitter.

NIFTY

5703 level has been of importance for Nifty. Nifty has closed above it, which indicates Nifty wants go up without needed consolidation at this time. We have also observed in past that Nifty remains above the critical level for 2-3 days and then corrects. Hence, I will remain cautiously bullish at this level. If Nifty closes above 5730 then it should quickly rise to 5866 level. Anytime, Nifty closes below 5650, I will reverse my long strategy or will exit from the long positions at least.

USDINR

Rupee has continued to strengthen. I read Finance Minister P. Chidambaram’s interview in ET. His first priority is Rupee’s absolute stability with more appreciation. I believe, his personal target for Re would be anywhere below 50 and he will put his all efforts for that. If Rupee slips below 50, much of the inflation spike of last legs when Re had slipped to 57 from 50, would be taken care of. Re below 50 would also reimpose faith of foreign investors in India. Because in dollar denominated terms, FII were loosing when Re was sliding. When Re slipped to 55 from 50, it was absolute 10% loss to FII even if market is unchanged and rest everything remained intact.

Hence, it is my firm belief that there will be all out effort to bring Re down, below 50. For sure, this currency engineering will bring in exodus of FII investments.

Rupee is playing between 52-53 as expected. But, do keep in mind the above mentioned intentions of FM.

My speculative short position paying me now. Intraday, it dipped to 52.30. I expect, Rupee to remain in the band of 52-53 for some days.

GOLD

Gold closed twice above $1772. But, could not sustain above it and fell marginally down. It seems, Gold is unclear about further moves and hence been moving around this level. I , too, will remain away untill Gold shows firm action on either side.

Even if Gold rises in international markets, rise in Indian price would not be as bulky as we have seen in past. Because, as I mentioned above, Re will continue to rise and that will reduce gains in Gold. Further, You may also expect some duty hikes or some stringent measures from Govt to ensure that people purchase less Gold and that will help Govt to reduce current account deficit. Finance Minister has already said that investment in Gold is dead investment and people should avoid it.

Gold did close above $1772 but second day it slipped below it confirming that it was false breakout. Hence, I would not add fresh long positions at this time. But, depending on today’s move, I may decide to liquidate some of my long positions. If Gold turns down, it can test $1738 and $1720 level.

In Indian price, Gold can fall below 31000 to find support around 30800.

SILVER

Silver, too, is unclear about future moves. Hence, I will remain sideways and will let metal decide. Silver failed to close significantly above $34.70 for multiple times. That makes me sceptical of intentions of Silver.

Hence, wait.

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 . Blog: https://investmentacademy.wordpress.com/

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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