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Performance Update of 11-10-2012
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Fresh Recommendations for 12-10-2012
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Underlying strength of Nifty was once again visible today. Many stocks –Midcap & small cap – were quick to catch up once Nifty turned positive. As said earlier, till election gets over in US, markets across the world will remain afloat as US treasury and FED will ensure that they keep up pumping liquidity and maintain positive sentiment in US. If centre is in good health, periphery, too, will be in good shape(if at home they are maintaining pro growth policies). US is centre of liquidity and rest of the world periphery.
As said yesterday, Nifty was near support zone and found the support. But, sustaining above 5700 is important otherwise it can test the support range of 5620-5640 once again. If Nifty sustains above 5700, 5866 can be achieved. As said, I have created long position in Nifty with closing basis stop loss of 5670.
Rupee has strengthened after 4 days weakness. I expect Rupee to weaken further. Rupee can go down to 53.40 to 53.90. Yes, sentiment is positive and Rupee can continue to gain strength. But, I would prefer to wait for tomorrow to see Rupee’s movement to infer any decision.
As expected, Dollar weakened and extended support to Gold. Gold is up today. But, any meaningful upside will be seen only after Gold closes above $ 1792.
Gold has support around $1759 level. Today, Gold has weakened further. But, as after 15-17 days rise, US Dollar Index is getting ready to fall again, Gold should find support near current levels. Risk: If US Dollar Index trades above 80.25 then Gold will slip below support levels.
In Indian price, Gold has been rising in spite of fall in international price because of Rupee weakening. But, Rupee is reaching to resistance zone and in 2-3 days will reverse the course.
As I wrote on 4th Oct, I have created long position in Gold with stop loss of 30735. In dollar terms, Gold’s Daily and Weekly patterns are still in favour of uptrend.
Silver is following gold. If Dollar index continues to correct, Silver will gain strength.
I had said yesterday:
“ 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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