Should You Buy Gold in 2014?

Indians have a fancy for the gold but the question is that shall we get into the habit of hoarding the gold even in year 2014 as we have been doing the same for past so many years. If you are a daily commodity trader; do not forget to check daily gold tips here and if you are an intraday equity trader; then remember to check the hot stock of the day.

As per policy of the govt; the price differential has occurred between the Indian price of the gold and actual international price of the gold in the international arena. This is the reason that gold smuggling is increasing and probably this is the reason that we are now finding gold bars hidden in the aeroplane toilets. So, Archaeological survey of India instead of running after information obtained on the basis of the dreams should go and check the toilets of aeroplanes and toilets at airports.

Notwithstanding that you can keep on buying gold for your lady love; as it serves the twin objective of keeping your better half happy and also increasing your investment in the gold. So far so good on the lighter side and now we will analyse the purchase of gold from technical perspective.

As per our analysis we feel that one should reduce the exposure in gold as it is breaking the key supports in the international market and these key supports existed at $1550 per ounce and if the key support at $1200 per ounce is broken then sooner or later we may see gold touching the levels of $1000 per ounce. However if gold rises above $1320 per ounce a pull back will be seen and an upmove will be seen above 1550 mark.

Have a look at gold chart in past 5 years and one will realise that half of the upmove has been retraced in past 2 years.

As a matter of fact if one want to invest in gold then one should look for gold rates in dollar rather than the Indian Rupee as the rate disparity exists due to Indian govt policies of tightening the import norms and levying hefty duty on the imports in order to control the CAD has tightened the import norms for gold and thus we may see increase in prices in gold near festival like Akshaya Tritiya or marriage seasons.

What should I do as I have marriage of my daughter scheduled? 

If marriage of your daughter is on your mind; then consider accumulating gold in a staggered manner during the whole year rather than buying the gold in bulk on a single day when you may find that rate is very high due to marriage season. Indian economics is simple as during the marriage season demand increases and supply reduces which leads to escalation of the prices.

Last but not least; it takes a lot of time to perform the technical analysis and write the content which is of the use for the investors and traders alike and thus will request you to please share the same through your favourite social bookmarking tool and let the good word spread as sharing is caring. This post is written on 02 Dec 2013. This post will be valid for full year 2014 and we will review it next year if required.

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Finolex Cable - Buy or Sell - Correct Technical Analysis

We are bullish on the prospects of Finolex cables as it has put up fabulous results and we foresee it breaking out of its consolidation range. Finolex Cables is showing a strong development within a rising trend channel and thus its move in the positive territory continues above the level of 66 which is a stiff resistance level. As you can see in the below chart that stock is enjoying a rising support at 58-50 level.

Analysis of chart from a technical perspective shows that the volume tops and volume bottoms correspond well with tops and bottoms in the price. This strengthens the trend. The stock is overall assessed as technically positive for the short term and medium long term.

Disclaimer

Our clients are long in the stock and one can get fabulous returns by short term picks where holding period is generally 5-8 days and one can get daily profit in intraday trading by using the best intraday hot stock of the day and be out of the market with profit by 11:30 AM. 

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Where is Nifty Headed Now?

Nifty is a key index which is watched worldwide and has been able to achieve new highs on Diwali day year 2013 post 5 years. Now the key question in every individual mind is that where Nifty is headed. Do remember to check the Diwali Multibaggers with One Year Time frame.

One just need to keep these figures in the mind and till these levels are not crossed on downward side; the bullish trend prevails Support exists at 6000, 5822, 5500 and resistance exists at 6223.

Following indicators show that peak is achieved in Nifty

(a) MACD (Moving Average Convergence Divergence) which plots the difference between a shorter-term (12-bar) and a longer-term (26-bar) exponential moving average (EMA) shows that the Nifty probably has reached peak unless it moves past 6223 level with volumes. The market is heading for 6100 with a minor support at 6130/6135 (monthly support line). Crucial support exists at 6079 and break of it on a closing basis will be negative for the market on a short term perspective.
(b) RSI is overbought, which indicates a potential short-term reaction down.

Why Long Term Trend of Nifty is Bullish?

• One need not panic as long term trend is bullish as now market is going to get into Narendra Modi wave and if any single party comes to power in May 2014; we will see Nifty touching 6900, 7500 levels. However only concern is that US Federal Reserve will taper its $85 billion bond-buying programme in May 2014 while India goes into elections. If that happens, then the market will be adversely affected as we would see foreign institutional investors moving away from the market back to the mother market. FIIs have been the primary source of foreign fund inflows in the domestic market. Thus we need to keep watch on US tapering policy and if no tapering occurs then Nifty heads for 6900 in its first leg up move. 
• Govt spending increases before general elections and rural gets the massive lift before May 2014. Higher spending means more business for companies.
• Global rating agency Standard & Poor’s (S&P) today said it will review India’s sovereign rating after the general election and its action will depend on the policy announcement. It means that also want to see the formation of govt i.e. whether it is a single party or a coalition govt. Even Goldman Sachs has upgraded Indian market's investment ratings from underweight to market-weight. 
• Nifty is in a rising trend, and in short term Nifty is now testing the ceiling of the trend channel. This may give a reaction down on the shorter time frame, while a continued rise within the trend channel may be expected for the longer term.

Last but not least; if you are tired of following Nifty than just trade intraday with one call per day and make money like professionals. Just remember that sharing is caring and thus we will ask you to share the post with your favourite social networking tool and spread the message.

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Aurobindo Pharma - Buy or Sell Analysis

Aurobindo Pharma chart analysis shows that the stock has come in bullish hands post crossing the 200 mark. Now the strategy to trade this stock is to be long in this stock above 200 level and see it attaining level of 220,250,300 in a matter of few trading days and if it reverses below 200 level than one can short sell for tgt 195 and below levels.

Have a quick look at the Aurobindo pharma stock chart below:

Do remember to check our best intraday tips and delivery stock tips here.

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