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Open Calls Given Previous Day or Before
Calls given through Yahoo Messenger and Twitter
Gail and OptoCircuit were exited as they achieved targets.
Hold HindOilExplo with closing basis stop loss of 114
Performance Update of 08-10-2012
Fresh Recommendations for 09-10-2012
I will issue calls through Yahoo Messenger and twitter.
As said yesterday, I was out of all long positions in 1st hour as Nifty started trading firmly below 5730 except HindOil and Jindal Steel, which were created yesterday.
Nifty should find support between 5610 to 5640. In extreme case, it can go down to 5550. If Nifty is tracing back flash crash of 5th Oct then it should go down to 5620 and should find strong support there.
Broadly, trend is up Globally. US market is trading up, with few bouts of correction Europe, too, is scaling higher levels. Only China is exception.
Reforms declared in India are waiting for proper implementation of declared intentions. Did Chidambaram declare these reforms in hurry to appease US Finance Minister?, who is visiting tomorrow with Federal Bank Governor or was that real to place India on growth track? Next few weeks reveal the story behind the reforms declared in hurry. India has been under tremendous pressure to open its economy for world as world has allowed Indian businesses across the categories. In globalised world, you cannot live in isolation, you have to reciprocate with similar intention to remain competitive and robust.
As some years before, India allowed foreign partnership in Auto and Insurance. Indian manufactures learned from foreign partners the new technology, admin efficiency and supply chain management. Today, same Indian manufactures are venturing ahead in many newer streams of those businesses alone. And, end consumer got the cost benefit with more sophisticated products with higher value addition.
Therefore, allowing foreign companies is not entirely wrong as long as our vigilance on their business activity is strong.
Rupee turned around today. After long streak of appreciation, it cooled off a bit. Rupee closed at 52.40. There are 2 possibilities here. Rupee can test the bottom again before further consolidation OR it can continue to retrace the fall. On upside, 53.50 should offer good amount of resistance. Rupee can hit 53.95 under extreme circumstances. But, we should not forget that Rupee is gaining strength hence only short positions should be participated.
Gold is testing support levels. The range of $1759 to $1772 offered great resistance earlier, now standing as support. Let us see, does Gold find support in this range or not? As I am writing, Gold is trading above this range finding support within the range.
As I wrote on 4th Oct, I have created long position in Gold with stop loss of 30735. Gold may revisit the level of 30735 in next few days. In dollar terms, Gold’s Daily and Weekly patterns are still in favour of uptrend.
As said sometimes that Silver is higher beta version of Gold. i.e. Silver exhibits higher volatility than Gold both the sides. Silver has breached some important supports in international market. Silver is trading below important support of $34.70 at $33.95. If range of $33.20 to $33.50 fails to offer support to Silver, it will fall drastically. It seems, Silver should find support in the said range.
I will remain sideways. Will update as opportunity arises.
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