Nifty - historic and going forward

"When in doubt, refer the larger degree trend."

Nifty Monthly Chart overview:

• A monthly closing of 5455 and above will take the Nifty to 6200.
  
• The immediate support is placed at 5127 and Nifty must sustain it on monthly if it has to go up.
  
• Though a double top formation at 6200, a trader should consider starting afresh as after a splendid bull run of 4 years, a correction of a year and a consolidation of 3 years have taken place.
  
• The volatility of last two months have reduced to its 3 years low.

On the daily chart,

• 50 Day Simple moving Average is placed at 5337. I have been talking about 5335 for last 2 months. For any short term positive trend, Nifty must close above its 50 DMA.
  
• 200 Day Exponential Moving Average is placed at 5210 which is a major support now and until Nifty closing above this average, the trend is positive.

Conclusion:

Until Nifty is closing above its 200 EMA, the trend is positive. Immediate upside spurt will be witnessed if Nifty Spot closes above 5335 -40.

A closing above 5455 -60 for Nifty spot will open a range up to 6200.

For any long position 5120 has to be considered as a major stoploss.

Nifty Overall

• Nifty spot facing a resistance at 5290 - 5335 range.
  
• The 200 Day Exponential moving average is placed at 5194 as of now. This will act as a major support.
  
• The momentum indicator EMV suggests a spurt on cards.
  
• Slow stockastic and MACD have turned neutral. Fast stockastic, Stock RSI and William suggesting an upside spurt.
  
• The falling trend started since 2nd Feb will end if Nifty spot closes above 5335.

Considering above facts, Nifty seems to be gearing up for an upside spurt. But, one must wait for the confirmation of at least a close above 5335.

(Today's recommendation of selling nifty at 5355 was for intraday only with stoploss of 5365. Nifty spot, if witness fall, it seems it will take support at 5282.)

Nifty for the month of April 2012

Date: 12 - April - 2012

Synopsis:

• A consolidation period of 34 sessions after a bull-run of 35 sessions.. On 22nd Feb Nifty spot made a high of 5630 and then onwards have been in phase of a consolidation.
  
• 200 Day Simple Moving average is placed at 5146 for the Nifty spot. The 200 Day Exponential moving average is placed at 5227 which will be very important support now.

• As seen in the above chart the resistance is placed at 5335 for the nifty spot. A closing above 5335 should be considered as a break-out from the on-going consolidation.
  
• The volatility has been neutralized during this consolidation. The volatility index is at its 3 years' low now.

Considering the above mentioned points, here onwards 5220 has to be considered an important support for the month and closing above 5335 will take Nifty to the new high of the 52 weeks.

Gold

Synopsis:

1) The major support level on the weekly chart is placed at $1562.9 which is also a lower end of the bollinger band.

2) The MACD and StockRSI have not turned positive yet.

3) The possible HEAD & SHOULDER can be considered as completed only if Gold touches $1771. So, until the pattern i completed it can be said that the commodity has formed double top below $1800.

4) On the daily chart at $1647, the support has been placed. The recent fall in the Gold US prices have been halted at $1647 for 8 sessions.

5) The MCX Gold has crossed the major hurdle of Re.28100.

In short, the US spot has been upholding the support at $1647 for 8 sessions on closing basis. In the MCX, gold has crossed the major hurdle of 28100. Which suggest that until it is above 27710, it is positive. Certainly, if a trader wants to create long position, he should be entering at a price of 27900 -27950 rather than jumping at the current price and maintain 27640 be maintained as strict stoploss.

But, it is also important to note that Gold has been trading 200 Day Simple Moving Average in US Spot market after 3 years.
In MCX, last C.Y. 11, Gold has gained 35% and a correction is certainly due. So, once it starts trading below 27310, the selling pressure will start building up.

In short, as the commodity has taken support at $1647 for 8 sessions and the 4hr and 8 hr charts seems turning positive one can create long position as mentioned above, but the mentioned stoploss be followed strictly.

Once, 27310 is broken, the short position can be created with 27710 as stoploss.

The weekly Inverted HEAD & SHOULDER pattern can be taken only when it is formed and not until.

-Sheetalpuri Goswami
+919879028295

Important Note: The views expressed are based on my observations only and these are not the recommendations of my employer IFCI Financial Services Ltd or any of my previous employers.

Nifty sl to be revised to 5255 EOD

Well, the stoploss for the Nifty long position, created yesterday closing bell, now revise to 5255.
Tomorrow morning 10 am onwards, again start revising the stoploss by Re.5 every hour. Let me know when your revised stoploss is triggerred.
mail me on goswamisheetalpuri5@gmail.com

Warm regards.

BTST update on yesterday's Nifty call

Nifty has made a high of 5280.85 and still our target is not met as on 9:28 hrs.

But, here is an opportunity to hold the position for better profit.
Let's revise our stoploss to 5230 and we will up the SL by Re.5 every hour.

Nifty - BTST

Nifty Future: Buy upto 5230
Target: 5289
Stoploss: 5211
Time period: BTST

Nifty spot 200 min average placed at 5325.

Trade with strict stoploss.

- Sheetalpuri
+919879028295

Is Gold heading for a long awaited correction

After crossing the 200 DAY Simple moving average in the 2nd week of January 2009, GOLD spot US has been trading above it through out. From $900 it rallied to $1900, more than 110% return during these 4 years.

Only, in the 1st week of January 2012, it breached the 200 DMA but zoomed back again to the levels of $1780.

As we see on the daily linear chart of Gold Spot US, the commodity has formed a double top below $1800 and also trading below the 200 DMA.

It is important to note that since the February 29, 2012 fall, the commodity has been trading at the lower side of the Bollinger Band and today it is breaking it to the lower side.

Also, the momentum indicators like StockRSI and William % also suggest a weakness on the daily chart. The RSI of 37.5 is also evident of selling building up. Though an intermediate support is placed at $1650, it seems as if the selling is pressure is building up and the commodity may not be able to withstand.

In terms of MCX prices, it can be said that one can create a selling position in the Gold MCX April Future which is now trading at 27600 with a strict stoploss of 28100.

The targets in MCX are worked out at 26500 / 26300 and 24900.

Sheetalpuri Goswami

Nifty - March 09, 2012

March 09, 2012, Friday,

The daily chart of Nifty suggest weakness. However, today being the last trading session of the day, I will update on Saturday the outlook for the weeks ahead based on the closing of the week.

As we see on the chart, the MACD divergence is -44.04, Slow stockastic -ve and the StockRSI at 0.5.
Even the RSI is 29.04. Which suggests, if the Nifty spot closes below 5198, the selling will gain the momentum.

But, 5198 being an important support and the 200 DMA of Nifty spot placed at 5164, market will take support at 5200 levels in case of panic sellings through out.

As, Nifty spot has crossed the 200 DMA with 3 failed attempts in last year, it seems that the momentum will remain in favor of bulls until 2 closings below 200 DMA takes place.

For the day, important resistance is placed at 5327 in Nifty spot which is its 8 EDMA and support is placed at 5250 in Nifty spot which is its 200 hrs Exponential Average.

goswamisheetalpuri5@gmail.com

Powergrid emerging from 3 years' consolidation

Synopsis:

Break - out of 3 years' consolidation


Rounding higher lows and higher tops formation on weekly chart


An open and close above a major resistance on weekly chart


RSI at 68.11 suggesting strength for the upside even in the coming weeks.


MACD in favor of bulls for 7 weeks.


Fast Stockastic and EMV suggest an over-bought zone still not reached on weekly chart.

As it is seen in the 8 years' weekly chart, the stock has given a break - out from 3 years' consolidation and is challenging the higher side of Bollinger Band.


Despite the spurt, the momentum indicators have not reached the over-bought territory.

As we see on the weekly Candlestick Chart, the stock has been forming higher lows and higher tops for 6 weeks and have closed above the intermediate resistance of 112.


Only a closing of 108 or below on weekly basis can be considered as a fall of this structure until the stock is a best bet for creating long for short term view.

Japanese currency to loose significantly

Is USD /JPY on a trend reversal?
This question arises seeing the movement of the currency in recent weeks.

Monthly chart

As we see on the monthly chart, the currency, has been in a constant selling mode after making a high of 124.16 in the month of June 2007.

The current momentum suggest that the currency has bottomed - out at 75.5 on monthly basis.

The larger degree momentum suggest a continuation of the on going rally of $ / JPY.

weekly chart

As we see on the weekly chart above, it has given the break -out above higher side of the bollinger band. That suggests much stronger movements ahead.

The higher StockRSI, positive break - out on MACD and other technical indicators suggesting strong buying ahead, makes me believe that the currency will touch 93.9 within a span of 6 -8 months.

Only a break below 75.5 can be considered as a fall of the structure.

Nifty for a trader in the month of March

• The January F&O series closed with upside of 11% and February with upside of 6.3%.
• Market showed gain of 22% from the low of 4588 on 2^nd January making a high of 5630 on 22^nd February.
• Nifty crossed the 200 DMA on 30^th Jan 12, after 3 failed attempts (07-July-11, 25-July-11 and 28-Oct-11) in last year.
• Considering the above factors, I believe the market has gained the momentum and it will remain so until it is above its 200 DMA which is now placed at 5172.
• As the rally in the Indexes have been large in these two months, we can expect some level of choppy-ness on the Monthly basis but, the intraday, intra-week volatility will remain higher.
• For trading in Nifty / Banknifty, a trader should approach a way of buying at dips and selling on rises rather than trading on break-outs.
• A Nifty trader can use any rise above 5600 for creating short and any fall below 5350 for creating long for the month.
• Stocks like TCS, HDFC BANK, LIC HOUSING, INDUSIND BANK and BATA INDIA which have been making new highs on QoQ basis even during last 4 years will continue to remain as best buys.
• Bigger opportunities are seen in the stocks which are rising from dust. A trader must approach such stocks with a clear-cut mindset that nothing is permanent, even the worst. DLF, Unitech and RCOM remains the hot bets in this segment.
• We would be seeing momentum building up even in the stocks which have not shown any momentum during last 3 years. We may witness momentum in TTML, MRPL and even MTNL.

As we see, in the daily chart, the nifty has been on the higher side of Bollinger band for more than 22 sessions and the momentum indicators like RSI, StockRSI, william% suggesting an over-bought zone.

But, important supports are placed at 5335 and 5260.

Updates about Nifty expiry report of 20th Feb as on 22nd Feb

On 20th Feb, I have mentioned the expiry for the Feb series kept in the range of 5335 - 5420.


However, till yesterday it seemed that the probability calculation of Nifty expiry not above 5600 may not work.

But, today's sell - off confirmed the weakness on higher levels as the Indexes being in overbought zone.

As we can see on the Daily chart, the important averages are placed way below.

The momentum indicators like StockRSI and Fast Stockastic suggest the weakness further for a few more sessions.

The following are the important moving averages:
8 days' exponential MA = 5492
21 days' exp. MA         =  5341
50 days' simple MA      =  5008
100 days' simple MA    =  5010
200 days' simple MA    =  5172
610 days' simple MA    =  5334

The overall scenario of Nifty suggest a major support at 5259.

However, if Nifty crosses today's high, buying will prevail again.

Sheetalpuri

+919879028295

Worst over for RCOM

• More than 90% correction from the top of Rs.844.7 in the 2nd week of Jan 08 to low of Rs.60.8 in the 3rd week of December 2012.
• Life time highest volume on weekly basis for the week ended on February 17, 2012.

As we see on the weekly chart of last 8 years', the stock has showed the life-time highest volume on NSE cash segment.

The other oscillators like RSI, Fast Stockastic, StockRSI are still positive.

Which suggest that the stock has bottomed out and the dips have to be considered as a buying opportunity for the stock.

However, on the daily chart, we see an intermediate resistance placed at 108 NSE Spot.

The correction in the index may lead to a correction up to 99 or even 94.

But, the larger degree picture of the stock suggest to use each and every dip as a buying opportunity only.

Only a closing below 80 can make the stock weaker for the days ahead and not until.

Sheetalpuri

+919879028295

Nifty expiry view for the month of February 2012

• The month of January 2012 was exceptional compared to last 47 months. But, it reminded again the month of January 2008.
• These two are the only months in the history of Nifty Options where Nifty has given closing of more than + - 10% variation on expiry basis.
• The funny part is both the January belongs to the leap year.

The question forward is if one January closing below 10% (that of 2008) made the market testing the bottoms, filling the gaps of 2004-05, what this January closing above 10% will do to the market.
Well, only the market will answer our questions further and markets are really beyond the predictions as always!

On the daily chart, we see the RSI being in over-bought zone for almost 24 sessions now.

So far so, the market has not confirmed any indicator of weakness, but considering the overbought zone and the important moving averages placed way below, we can expect the expiry for the month anywhere in the range of 5413 - 5332.

As we see in the chart, 5332 will act as a crucial support even going further.

Regards

Sheetalpuri

+919879028295

Gold for January 16 2012

The Gold Spot US is facing the resistance at $1736 for last 3 sessions.

Today's opening suggest a slid during the day.

The momentum indicators are suggesting an intraday fall up to $1705 which was the low of 10th February.

However, if it crosses $1737 which is yesterday's high, the buying would prevail.

Silver Outlook - February 14, 2012

The Greece bail out package has been discussed by the EU day before yesterday.
It seems as the on going rally on precious metals have been halted for time being.

In the daily chart, it can be seen that at $34.5, US spot has faced stiff resistance and for last 5 sessions, it has been forming the lower tops.

The momentum indicators also suggest selling pressure for a day or two.

However, it is very important to note that if it crosses $34.5 (on higher side), one must exit the selling position as the Weekly chart has not turned negative yet.

On weekly basis, an upside spurt is still on cards. For the MCX, the selling position can be created with strict stoploss of 57650. 

Crude Oil - Outlook

On Friday, I initiated a Buy on Crude MCX with stoploss of 4925. On that day, Crude made a low of 4855 and our stoploss was triggered.

But, during the late hours, the commodity bounced back and closed at 4922.

Now, if we see the overall picture of the commodity, we can see the monthly chart turning positive.

The StockRSI suggesting an upside spurt on monthly basis. Even the other indicators like MACD, UO and RSI are suggesting strength.

As I have mentioned, the commodity is positive on monthly basis and the MCX expiry is due on 20th Feb, I suggest to create position, for a view of 10th March.

However, if $97.4 is broken on WTI, it would be better to exit the long. So, it is important that one maintains the stoploss of 4855 for the long position in MCX.

NIfty outlook for the day February 14, 2012

As we can see in the chart, the Nifty spot has remained in the range of 5320 - 5400 for 6 sessions.

So, a break - out on either side on closing basis will decide the trend further.

However, for the day trade, we can sell Nifty Future at 5410 -5415, for the target of 5378 / 5356.

CrudeOil - Trade of the day

The WTI Crude is currently trading at $99.5. Last week the commodity touched almost $95 and then a pull back is seen.

On the daily chart, we can see that the momentum is building up.

The technical indicators have turned in the favor of the bulls.



The weekly chart also suggest a stronger up move forward.

On the weekly chart, it can be seen that a sharp movement can be seen up to $103 for the week.

On MCX, we can see a stronger up move up to 5025 for the day.

The stoploss for the position can be worked out to 4921.





Above all, the monthly chart for the commodity has turned positive and we may see a stronger up move during the month for the commodity.

Nifty update and stock of the month TCS

Though Nifty spot managed to sustain my resistance line of 5362 through out the day, we witnessed selling during the day.

The momentum indicators like Slow stockastic and Fast stockastic surely suggest the slowing down of the on going pace. 

Below 5362, selling would be seen up to 5280 for the day.
Remember, for every short position, the stoploss of 5405 is must.

Weekly chart of TCS (NSE - Eq)
The daily chart of TCS surely suggests an over-bought zone for the stock and one can expect the stock to show some weakness for a session or two.


But, the weekly chart indicates strong buying in the counter. Also, the momentum indicators suggest a sharp movement on weekly basis.


The last hurdle for the stock is closing above 1215. 
So, every dip is a buying opportunity for the stock. Remember, above 1220, it will rocket to new scales, new highs.

Sheetalpuri Goswami

+919879028295

performers of last 8 years

Indusind Bank

Indusind Bank remains my top pick. As it is about to close above 300, the stocks seems to be entering in the new range of bull.

TCS

The higher closings on weekly basis is evident of the bulls pushing the stocks for the new range.

HDFC BANK

HDFC BANK has remained a constant performer of the market. It is better keep the position in the stock like this.

BATAINDIA

Closing above previous high on weekly basis, will open new range for the stock.

LIC HOUSING

Higher bottom formation on weekly basis.

Natural Gas updates

Natural Gas MCX: Buy
Entry price : 114 - 120
Stoploss: 109
Target : 156
Time period : 1 month

The Natural Gas Future on MCX has been in constant down trend since last month.

The weekly trading range of the commodity has been as much as 30 points (20% upside and downside).

Since, the trading range has become large, it is more important to see the weekly chart.

On the weekly chart, we can see a formation of TWO INSIDE DOWN which is a bearish pattern.
If the MCX future closes below 125 on Friday, the bearish pattern would be confirmed.

On Monday, if it trades below Friday Close, a double digit rate for the commodity.

However, the most important level for the commodity is 119. The momentum indicators like StockRSI and RSI suggest a highly oversold zone. Even the MACD on monthly chart suggests a oversold position.

As the commodity is trading near its previous bottom, the risk-reward seems to be favorable for a long position. Yes, a stoploss of 109 is must for the position. The target can be expected for a period of 1 month to Rs.156.

Sheetalpuri Goswami

+919879028295

Nifty Positional - February 2, 2012

Nifty Future: Sell
Entry price: 5295 - 5320
Stoploss: 5343
Targets: 5075 / 4948

In the beginning of the C.Y. 2012, we have seen a sharp rally in Nifty. After making a low of 4676, Nifty zoomed to 5270 in a month's time.

In % terms, it can be said that the Index has moved by 15%.

However, on the daily chart it can be clearly seen that a resistance has been placed at 5320 in Nifty spot.

The Gap-down opening of 5th August, 2011 will act as a resistance for the market.

The momentum indicators also suggest an over-bought zone.

However, if the Nifty spot crosses the resistance zone, it would not be prudent to remain short.
Also, it is important to note that after 4 attempts, Nifty spot could cross its 200 DMA.

In, short, the recommendations has to be followed with a strict stoploss mentioned.

Sheetalpuri Goswami

+919879028295

Initiated on 31st January 2012, Tuesday 8 am
Indusindbk : Buy
Entry price: 280
Stoploss: 262
Target: (waiting for a break out above 300)
Time period: 1 month

Yesterday monring, I have initiated a buy on INDUSINDBK at 280 with a stoploss of 262.
I would suggest to wait for a closing above 300 for a further target.

HDIL - Positional Buy

HDIL : Buy
Entry price: 75 - 80
Stoploss: 70
Target: 115
Time period : 1 month

The entire Real-estate pack has been in the down-ward trend through out last 3 years.

In the month of January, the volumes in all the reality counters have increased.

The larger volumes in this counter indicates  buying by stronger players. As the 100 DMA is placed at 80, the stock is facing some resistance at these levels.

But, the stock has been side ways for more than a year and it is more likely that the hurdle would be cleared.

Sheetalpuri Goswami

+919879028295

CrudeOil - Positional

CrudeOil MCX: Buy
Entry price: 4972  - 85
Stoploss: 4916
Target: 5113
Time Period : 5 Sessions

After making a high of 5498 on 4th January 2012, the commodity has been falling through out the month.

It is important to note that at 4906-10 a support is placed.

Even the momentum indicators suggest the slowing down of the pace.

But, if the support line is breached, the fall would be up to 4500.

But, the indicators like Slow Stockastic and Fast Stockastic on weekly basis also, suggest a slowing down of the pace.

The WTI Crude monthly chart indicates a resistance at $104.


So, one can buy Crude at 4972 -85 with a stoploss of 4916 (yesterday's low) for a target of 5113.

Sheetalpuri Goswami

+919879028295

Silver - Intraday - January 30, 2012 - Monday

Silver MCX: Buy
Entry price: 55480 - 750
Stoploss: 55180
Target: 57200
Time period : Intraday Only

The Silver Spot US is trading at $33.58.

The StockRSI and William which are the momentum indicators suggest the over-bought zone.

However, it is important to note that the metal has been making higher closings for last 3 weeks.

Therefore, any dip up to the low of last trading session ($33.26) has to be considered as a buying opportunity.

But, if it breaks the low of the previous day, it is prudent to exit the position.





If this situation is considered in MCX, the entry price for the position is placed at 55555 which is the Open price of 25th January.

It is important to note that in MCX, Silver is facing a resistance at 57200 which had been a support of the August 2011 rally after the great fall.

So, for the day, one can buy Silver in the range of 55480 - 55750. The stoploss for the position is placed at 55180 for the target of 57200.

Sheetalpuri Goswami

+919879028295

Top pick of the quarter - DLF

DLF : Buy
Entry price: 192 - 205
Stoploss: 172
Target: 335 / 450
Time period: 3 months

During the 2nd week of January 2008, the stock had made a high of Rs.1210 and in the 1st week of February 2009, it formed a low of Rs.124 on NSE Cash segment.
After the great fall of almost 90% from the top, the stock has forming Lower Tops and Lower Bottoms for last 3 years.

On 17th August 2011, the stock made a low of Rs.173 on NSE Spot. On 6th January 2012, again the stock has formed a low of Rs.173 only.
On January 10, 2012, the volume on NSE cash segment was more than 3.5 crores shares and on January 11 it was 2.77 crores.

In short, the stock has formed a double bottom followed by the 2 years' highest volume.

The daily chart suggest a strong resistance at 225. Yesterday also, the stock has made a high of 225 on NSE Cash and could not sustain the selling pressure and closed at 212.

The technical indicators like RSI, StockRSI and William suggest an over-bought zone for the stock on Daily chart. Even the weekly chart indicates a hammer on closing basis.

But, irrespective of other parameters, the stock is best buy at each and every dip. If it breaks the double bottom formation, it is prudent to exit the stock.

Sheetalpuri Goswami

+919879028295

Nifty Positional

Nifty Future: Buy
Entry price: 5015 - 4950
Stoploss: 4828
Target: 5650
Time Period: 3 months

After making a top at 54.5 USDINR has been making new lows.

On 10th January, (lower circle in the image) given a confirmation of the strengthening rupee.  The Nifty then was also exiting the oversold zone on daily chart. Therefore, I initiated the target of 5000 and on 17th January the expiry target of 5171.

However, it had not breached the falling channel so far.

Friday, 27th January closing of 5205 on NSE Spot confirms the break-out.

But, the other technical indicators (RSI 91.8, Ultimate Oscillator 74.48 and StockRSI of 100) suggest the pressure would be seen in the coming few days.

The 200 DMA of Nifty spot is placed at 5205 which has been the close of Friday. 

It is more likely that we may see the selling pressure up to 4948 which is 100 DMA and 21 EDMA of Nifty spot. So, any dip up to 4940 has to be considered as a buying opportunity. However, If Nifty starts trading below 4830 which is the 50 DMA of Nifty spot, it is better to exit the long. 

The quarterly target for the nifty can be considered at 5650 though at 5400 a resistance is placed.

Sheetalpuri Goswami

+919879028295

Silver updates for 27 January 2012

Silver MCX: SELL
Entry price: 57860 - 58450
Stoploss : 58620
Targets: 57400 / 56680
Time period: Intraday only

I have initiated a positional buy on SilverMCX for a time period of 3 months on 21st January. The entry price range mentioned is 54200 - 55200 for the targets of 57200 / 59900 / 62300 with a stoploss of 52300.

On Wednesday, Silver MCX made a low of 54671 and traded near 55000 through out the day.

Now, today our 1st target would be achieved. The recommendation for day is to sell Silver MCX.
Please note that the positional view is bullish only. The recommendation is for the intraday trade only.

Silver US spot is trading at $33.36.

At $33.72 - 33.89, the selling pressure would be seen in the metal.



The 4 hrs chart suggest the slowing down of the pace for the day.

The trend on MCX seems also positive.

But, a resistance is placed in the range of 57900 - 58400.

The recommendation for the day is to sell silver only in the range of 57860 - 58450.

It is more unlikely to cross 58500 today. But, still the stoploss of 58620 has to be kept.

The targets for the day are 57400 and 56680.

Sheetalpuri Goswami

+919879028295

BankNifty - Intraday 27 January 2012

Banknifty : Sell
Entry price: 9839 - 9882
Stoploss:  9936
Targets : 9659 / 9563
Time period: Intraday only

The Banknifty spot made a low of 7888 on 2nd January and since then it has been in superb uptrend.
With the high of 9906 on Wednesday, Banknifty has gained nearly 20% in a month's time.

However, on the daily chart, it can be seen that a resistance is placed at 9900.

The other technical indicators are also in over bought zone.

So, it is more likely to witness a selling pressure today.

One can Sell Banknifty future in the range of 9839 - 82.
But, the stoploss of 9936 is must.

The targets for the position can be considered as 9659 and 9563.








Also, the weekly chart of Banknifty suggests an overbought zone.

Secondly, though, during the month Banknifty was up by 20%, it has not broken-out of the falling channel.

 Sheetalpuri Goswami

+919879028295

Gold for January 24, 2012

GOLDMCX: Buy
Entry price: 27435 - 27365
Stoploss: 27260
Target:  27680 - 738 - 827
Time period: Intraday



Gold Spot US has crossed its 200 DMA on 16th January and have been trading above it.
The 100 DMA is $1686.

The indicators suggests an over-bought zone for the metal.

However, it is very important to note that for last 18 sessions, it has been making higher lows.

So, a dip during the day is a buying opportunity. As of now, Gold Spot is trading at $1672. It may dip up to $1662 during the day.

The MCX gold chart does not reflect the strong buying like SPOT US due to the strengthening rupee against dollar.



However, today any and every dip up to 27365 has to seen as the buying opportunity.  But, if it trades below 27280, the trend would get weaken for the day. So, a stoploss of 27260 is must.

The target for the position can be considered as 27680 - 738 - 827.