Daily Wealth – 04-10-2012

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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

buy Gail with stop loss of 382.3 for price target of 387-388-390

dcshah76: Buy Ranbaxy with stop loss of 538.55 for price target of 549

dcshah76: Buy Opt circuit at market price of 128.4 with stop loss of 127.8 for price target of 131-133

Performance Update of 03-10-2012

Script Recommend

Ded Price

Stop

Loss

Target

1

Target

2

Exit

Call

Lot

Size

Open Gain/Profit

/Loss

GAIL 383 382.30 387 390 1000 1850
ICICI Bank 1054 1069 1020 Open 250 250
PNB 833 840 821 817 Open 250 1250
OptoCircuit 128.4 127.8 131 133 Open 1000 -150
Total Gains 3200

Ranbaxy stopped out.

Fresh Recommendations for 04-10-2012

I will issue calls through Yahoo Messenger and twitter.

NIFTY

Nifty closed above 5730. But, what is missing, is the decisiveness and strength that Nifty has exhibited earlier. 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.

Nifty has closed above 5730 and hence possibility of 5866 level opens up. 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 52.10. 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 has now been trading in the range of 1765 to 1785. Gold twice closed at $1777 and gave up the strength. Today, as I am writing, it is trading above $1777. I will wait till Gold gives firm movement either side.

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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