Good news for steel sector

Metallica

Cost push help steel prices gaining

During the last fortnight (ending 14^th Jan’13) steel prices saw a good jump after a long consolidation. Iron ore prices on the other hand continued to rise

·      The CIS Black Sea (fob) export HRC prices gained 9% to US$580/ tonne. Domestic prices in China rose by 3.3% during the same period to US$652/tonne. In India long product prices saw some improvement, while flat product prices remained steady

·      Iron ore prices continued their upward movement on due to higher imports from China , as port inventory fell recently towards 72 mt. The 62% and 58% Fe grade iron ore prices jumped 7% and 8% to US$154.6/tonne and US$145.7/tonne respectively

Believe, improvement in steel prices is due to cost push rather than demand pull, as iron ore prices continued to soar. We would like to wait and watch whether steel prices can sustain their recent gains.

Base metals during the last fortnight remained quiet and ended flat on a fortnightly basis

·      Copper and aluminium gained 1% each to US$8030/tonne and US$2063/tonne respectively while zinc and lead LME lost 2% and 1% to close at US$1996/tonne and US$2305/tonne respectively. USD index remained stable at 79.5

Believe, USD index would play a major role in deciding the base metals price direction in the near term

TECHNICAL Impact currency today->16.01.2013

TECHNICAL Impact

USD INR (JAN– Expiry)
US dollar is looking strong on charts hence buying is recommended in USD.
Buy around 54.8800 with a SL 54.6700 possible targets of 55.1500/55.3000/55.4000.

EUR INR (JAN – Expiry)
Euro might fall further as technically looking weak.
Sell below 72.8825 with a SL 72.9800 possible targets of 72.7400/72.6425/72.5300.
OR
Buy above 72.9800 with a SL 72.8825 possible targets of 73.1025/73.2000/73.3225.9818958023

Currency Headlines
Yuan falls as PBOC lowers the reference rate.
Yuan is hovering in bearish mode as the PBOC has lowered the reference rate to four months low which has increased the pressure on their currency. The People’s Bank of China lowered the yuan’s reference rate by 0.09 percent, the most since Sept. 18, to 6.2745 per dollar. The fixing was 0.97 percent weaker than yesterday’s close in Shanghai, near the 1 percent limit allowed by the central bank. The yuan declined 0.04 percent to 6.2162 per dollar, according to the China Foreign Exchange Trade System. The currency has climbed 0.23 percent this month and reached 6.2124 on Jan. 14, the strongest level since the government unified official and market exchange rates at the end of 1993.

TECHNICAL Impact currency ---->15 jan 2013

TECHNICAL Impact
USD INR (JAN– Expiry)
US dollar is looking strong on charts hence buying is recommended in USD.
Buy around 54.6000 with a SL 54.4000 possible targets of 54.9000/55.0500/55.1900.

EUR INR (JAN – Expiry)
Euro might fall further as technically looking weak.
Sell below 72.8825 with a SL 72.9800 possible targets of 72.7400/72.6425/72.5300.
OR
Buy above 72.9800 with a SL 72.8825 possible targets of 73.1025/73.2000/73.3225.
 
Currency Headlines
Australian dollar falls on tumbling economic figures.
Australian dollar is hovering in bearish hand as the speculations have increased that the employment figures might disappoint the Australian investors. Australia’s jobless rate probably rose to 5.4 percent last month from 5.2 percent in November which might increase the pressure on Australian assets. The Australian dollar fell 0.1 percent to $1.0553 after rising 0.3 percent yesterday. It touched 94.66 yen, the highest since August 2008, before trading at 93.89, 0.7 percent below the close in New York. New Zealand’s currency, known as the kiwi, lost 0.3 percent to 84.06 U.S. cents. It slid 0.9 percent to 74.78 yen after earlier reaching 75.53, the strongest since September 2008. Australia’s 10-year bond yield was at 3.44 percent from 3.46 percent yesterday. New Zealand’s two-year swap rate, a fixed payment made to receive floating rates which is sensitive to interest-rate expectations, was unchanged at 2.82 percent.

10 JAN NIFTY CALL UPDATE

AS PER OUR CALL OF 10TH JAN 2013 NIFTY TAKEN SUPPORT 5950 NIFTY RETURN FROM 5985 AND MADE HIGH AS PER GIVEN RESISTANCE AREA 6067.25

82 POINTS GIVEN BY NIFTY !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

EXAMPLE=> IF WE BUY ONLY 100 QTY THEN PROFIT WOULD BE 8200 IN JUST 2 TRADING DAY 

EQUITY CALL UPDATE OF 14 JAN 2013

NIITTECH CALL GIVEN @ 268 MADE HIGH 278   PROFIT = 10 RS PER SHARE

POLARIS CALL GIVEN @118 MADE HIGH 123.40  PROFIT= 5.40 RS PER SHARE

MINDTREE CALL GIVEN @727 MADE HIGH 754 PROFIT = 27 RS PER SHARE

SINTEX CALL GIVEN @70 MADE HIGH 73.20 PROFIT = 3.30 RS PER SHARE

SATYAM CALL GIVEN @115 MADE HIGH 118.90 PROFIT = 3.90 RS PER SHARE

UNICHEMLAB CALL GIVEN @204 MADE HIGH 211.70 PROFIT 7.70 RS PER SHARE

TOTAL PROFIT PER SHARE 57.30

IF WE DO TRADE ONLY IN 100 SHARE THEN PROFIT WOULD BE 100*57.30 = RS.5730/-

MCX CALL UPDATE--->1ST TARGET DONE

our morning call of gold and aluminium 1st target done

MCX CALL FOR DAY TRADER

GOLD Sell near 30970 SL 31050 TGT 30850/30760 OR Buy near 30680 SL 30620 TGT 30760/30915

 ALUMINUM Buy near 113.1 SL 112.6 TGT 114.4/116 OR Sell near 116 SL 116.9

INVESTMENT IDEA OF THIS WEEK

THESES COMPANY ARE FOR INVESTMENT   EXPECTED RETURNS 5% TO 10% IN 10-15 DAYS                     
                          CLOSE   200           
                           11 JAN  SMA  BUY1   BUY2  STOPLOSS

NIITTECH *         272       276     268        262          256             Good VOL + Strong PRICE Movement
POLARIS **        121       125     118         117          116             Good VOL + Strong PRICE Movement

MINDTREE *       731       642     727        716          703             Good VOL + Strong PRICE Movement

SINTEX *             71         65       70           70            68              Good VOL + Strong PRICE Movement

SATYAMCOMP WITH CHART-->14 JAN 2013

Prices today have closed above the Trend line Resistance Level of 110. This trend line had earlier acted as a major support & recently as a good resistance point too. This reflects the importance of such trend line.
Today’s price movement is accompanied by good volumes too. Prices trading way above 200DMA level too. Now Buy on dips BUY till closing is above 110 level with Stop below its previous Support zone, mentioned. Book Profit near resistance zones.
CMP – 115
RESISTANCE – 116, 120, 124                                          SUPPORT – 112, 110, 108

UNICHEMLAB WITH CHART-->14 JAN 2013

Prices today managed to close above two important levels, first above a major resistance zone of 204 level, next above the Neckline level {208} of Inverted Head n Shoulder Pattern, with upward target of 30points from such neckline level. This price movement is accompanied with more than above average volumes too, hinting towards further upward movement. Better to Buy on retracements.
BUY till above 204 Level with Stop below the Support Levels, mentioned below. Book Profit near
resistance zones mentioned, below.CMP – 204RESISTANCE – 208, 211, 217                                                            SUPPORT – 204, 200, 195