Trading Strategies for April 2012

BUY jaiprakash associates target Rs.86.20, levels once broken will lead towards 88.75

BUY BHEL only once price breaks Rs.257 with targets of 263.1 and 266.5
However If price fails to breach Rs.257 then short with targets of Rs.252 and Rs.241

Buy Golden tobacco for long term (Technical candlestick pattern has three black crows
which define a huge bullish candle towards Rs.62

IOL Chemicals is going to continue its bearish move towards Rs.19.5 therefore we would
recommend hold short positions

BUY ZODIAC CLOTHING WITH TARGETS OF RS.233 maintain a stop loss of Rs.198
Do not hold this stock for a long term, since this will continue to remain in a consolidation
phase for the next coming months, We are keeping a watch on this stock since it has
gained with volume of over 9 Lakh shares within a day's time, Therefore if it breaches Rs.250.5
it may continue to move north.

WE RECOMMEND GOING SHORT ON LUPIN AT MARKET RANGE OF RS.533-546 WITH TARGETS OF RS.409 AND RS.384

Nifty trading strategies 14th feb 2012

The Sensex has way to move up another 350 pts after mondays close at 17772.84
with resistance at 18132 and Support levels at 17596 once broken would lead towards 17300

The resistance mark of 18132 is a very crucial level for a turning point in the markets
a break above 18132 will lead the Index towards 18440 and 19120.


The Midcap index is trading above its 200 day moving average which acts as a very strong
resistance point for Midcap stocks,Tte Midcap Index is positive as long as it
holds above the 6260 Mark with targets of 6340 6476 for the week. Supports lie at 6260 and 6153.
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buy gspl above Rs.80 with targets of Rs.92 , SL 79.80 CMP 84.9 (Duration 14 days)
buy escorts above Rs.86.75 with targets of Rs.92 and 100 (Duration 15-20 days)

Market watch

Larsen & Toubro to Hit Rs.1795 , buy at CMP 1600

Reliance to reach 2283

our target of Nifty 5200 remains.

Markets will remain volatile until the end of october .

Commodity prices rose modestly last week amid weakness in USD. Reuters/Jefferies CRB Index added +1.4% while USD Index plunged almost -2% to 76.6, the lowest close in a year. Commodities normally trade in opposite direction with the dollar.

The generation-low interest rate in the US (Fed funds rate: 0-0.25%) has caused massive selloff in USD. Against the euro, the greenback plunged for 4 out of 5 trading days and closed -1.9% lower at 1.457, the lowest level in 9 months, for the week. Against the pound, USD also slid -1.6% to 1.6655, a 1-month low, last week.

There were 3 central bank meetings last week. All of the RBNZ, BOE and BOC left interest rates unchanged at 2.5%, 0.5% and 0.25% respectively during the meetings but policymakers indicated brighter economic outlooks for 2H09 and 2010.

In the coming week, the BOJ and SNB will decide on rates. We believe both banks will leave policy rates unchanged at 0.1% and 0.25% respectively. This would leave the markets range bound before the release.

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After spiking to 72.9, crude oil tumbled to as low as 68.8. The October contract plunged -3.9% to settle at 69.12 Friday, leaving this week's gain to +1.2% only. The black gold's decline Friday was accompanied by the dollar's weakness and strong US economic data. These were in contrary to the usual inverse relationship between commodities and USD.

Crude oil started the week with strong rally but ended it with a slump. We believe the reversal was not only due to profit-taking but also a delayed reaction to the industry news/data released during the week.

Both the industry-sponsored API and the US Energy Department reported huge draw in crude oil inventory but surprising increase in gasoline and distillate stockpiles. Although decline in crude inventory positive, surges in fuel storage should have more than offset bullishness.

Gasoline stockpile rose +2.1 mmb last week to 207 mmb. This had not only come in contrary to consensus of a draw but also halted the 6 consecutive weekly declines. In fact, we believe further increase in stockpile will follow in coming months due to the normal shoulder season in the 4th quarter. Distillate stockpile gained for the 3rd consecutive week. Since 3Q09, inventory has risen for 8 out of 10 weeks. As winter comes, demand for heating oil should increase but this may not be the case this year. Meteorologists suggested the possibility of El Nino which may bring a warmer-than-expected winter in the Northern Hemisphere this year.

OPEC concluded September's meeting and announced to keep production quotas unchanged Wednesday. Apparently, the meeting was a non-event as the outcome was widely anticipated. However, comments from member countries, especially Saudi Arabia, suggested OPEC's goal to tighten stock level has been dropped.

After the meeting, Saudi Arabia's oil minister Ali al-Naimi commented that 'we are enjoying a good, fair price' and 'Inventories are irrelevant, they can be 70 days... It has no bearing on price'. This was compared with the comment in May that industry-held stockpiles in developed nations needed to be brought down to the equivalent of about 52 to 54 days worth of consumption, from 62 days. Concerning compliance, Ali al-Naimi did not see the need to put pressure on overproducing members as 'people are complying anyway, 70% compliance is great'.

Obviously, the members were satisfied with the current price level and Saudi Arabia explicitly mentioned that the current 68-73 level is 'going to be there for a while'. Giving the OPEC's significance in affect oil price, we do believe that the current price level can hold in the medium term. The members will increase output should oil price increases. When price drops, say below 60, large producers such as Saudi can reduce supplies, thereby limiting the fall. In this way, crude oil price will consolidate for some time, given global economy improves in a gradual but uncertain manner.

Uptrend In Gold Stocks !

We've done so again , we've been long from $896 ,

I would still recommend you buy shares such as . Titan , Gitanjali , AGEE gold , and a couple of more gold stocks that you can get your hands on .


Looking at the Bullish Gold Miners Index there is going to be another jump in the Gold Stocks would have to follow .
the Dow Gold Miners Index also seems to have a bull confirmed on the first week of may.

Technically Earlier the HUI Golds Bugs Index confirmed a bull in the gold prices which is why we see it at $930 and $937 USD ahead , Following Resistance . Prices of Gold will remain volatile and we could also see a slight consolidation phase ( a slight correction ) before another Spike upwards.. Commodity traders are going to find it difficult to trade the current gold prices due to sudden moves following the data listed in the economic calender.

the EUR/USD is now directly correlated to the Gold prices , We see resistance in the EUR/USD at around 1.41 , which is still a good bullish support for the Gold prices. due to weakening in the US Dollar.
----------- Gold Stocks are going to soar!! ----------------


Looking at the Technical Charts , These Gold stocks are just about to cross their 150 , and 200 day moving averages , these gold stocks are not actually according to the current prices of Gold which is at $930 .
I believe these stocks can get you good returns in a short time span, Probably within this Month.