Daily Wealth – Nifty’s strength indicates target is 6050


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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.

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Sesa Goa shows very good pattern. Buy Sesa Goa at current level for target price of 182-190.


Nifty showed remarkable strength today. Nifty also closed above 5730 for 2 consecutive tests. Hence, I would recommend to buy Nifty with stop loss of 5680 on closing basis for target price of 6050.

Fundamentally Sound and Technically positive stocks: Sintex, Crompton greaves, Educomp, Force Motors, NMDC, TCI ( Transport Corporation of India ), Tecpro systems. I will keep revisiting this list.


What is sure about Rupee is that it will test 51 to 48 zone.

Rupee is showing complete indecisiveness. Last 2 days closing is on the same level. With patterns formed so far, I will venture to short Nifty only if it closes below 53.50. Till then, it can move either in the range of 53.50 to 54.50 or may head up again to 55 and 55.50.

But , yes those who have risk appetite can continue to short Rupee on higher levels.

Dollar is almost ready to reverse its uptrend and ready to hit lows of 78.50. Dollar is done with upside is also seen in USD/JPY, AUD/USD and other pairs.


Ah !! Gold turned people’s opinion up down in last few days. But, I continued to say that one day’s down trend should not be considered final and if downward spike is retraced completely in next 2-3 days then it was just a quick sell off pressure built intentionally to weed out weak holders of the positions.

Gold’s yesterday’s close was very much on $1717 from where Gold fell on 2nd Nov. As I am writing Gold is back above $ 1717 around $1723. I wrote day before yesterday that Gold has 2 options since Gold is moving in a channel wherein upper channel touches to $ 1840 and lower channel to $ 1460. If Gold sustains at higher levels and does not give up levels attained quickly, Gold will hit $ 1840. But, be patient. We are at critical juncture and patience will only pay at this time. Stay tuned to my updates.

6th Nov Update:

As said yesterday, Gold is retracing some of the fall. For uptrend, it should rise above the 2nd Nov high of $ 1717. If you are short on Gold, best is to hold it with closing basis stop loss of $1717 or else stay away.

Gold is trading in the middle of trend channels in monthly chart and there 2 options exist. It can hit either $ 1840 on upside or can test $ 1460 on downside.

Why Gold Fell?

Gold was trading in range and had been in range since mid of September. GDP and Jobs data of US were on improvement since then. The sudden improvement of Jobs data was catalyst for Gold’s sudden fall.

Market participants and traders believed that if Jobs data improves and GDP continues to improve as it improved in last quarter above expectation, then US will stabilise, Govt’s revenue will increase and issuance of Fed T-bill will reduce and hence Dollar will go up. When Dollar goes up, inflationary expectations come down and hence God should fall !!

But, this is mere daydream. Gold is far from being topped out. I expect this downturn to continue for some time and may be till Jan, 2013. But, rest assured, US will fall further before sustainable recovery and Fed will continue to print as it has been doing since last 4 years and dollar too will continue to slip down. This is temporary downturn.

The sad thing is, this sharp downturn will shake Gold holders from within and most of them will abandon their positions. Stay tune to my updates.


Silver will continue to follow Gold.


I will remain sideways. Will update as opportunity arises.


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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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