Fundamental Report

Be Wealthy Be Wise
Sep 22, 2010

Daily Market Update

GOLD
PRECIOUS METALS

MAJOR HIGHLIGHTS

• Gold rallies to fourth successive record high after Fed

• Fed says ready to act, if needed, to step up inflation

MARKET RECAP

Spot gold edged up 0.2 percent to $1,288.35 an ounce by 0038

GMT, after touching a new record of $1,290.70 on Tuesday. U.S.
gold futures for December delivery rose 1 percent to $1,288.6.

The U.S. Federal Reserve said it stood ready to provide more

support for the economy and expressed stronger concerns about
low inflation, although it made no policy shift at the end of the one-
NYMAX SUPPORT RESISTANCE day meeting.
$ 1290 $ 1295
Gold $ 1285 $ 1300 The weakness in the dollar has helped support bullion. The dollar
$ 19.80 $ 20.95 fell to a 6-week low against a basket of currencies, after the Fed
Silver $ 20.70 $ 21.20 meeting intensified speculation it would take more measures to
bolster the economy.

SILVER Bank of Japan Governor Masaaki Shirakawa said the central bank
will continue to provide ample liquidity to markets, including funds
supplied through currency intervention.

OUTLOOK

Reaching $1,300 is just a matter of time. The most important

factors are zero interest rates and that the world economy outside
Asia still seems unstable

DATA/EVENTS

The following data is expected on Wednesday:

1100 U.S. Morgage Index Weekly

1400 U.S. FHFA Home price July

MCX SUPPORT RESISTANCE

Rs. 19100 Rs. 19200

Gold Rs. 19000 Rs. 19300
Rs. 31800 Rs. 32200
Silver Rs. 31600 Rs 32500
 BASE METALS
Copper
MARKET RECAP

Copper prices fell for the second straight day on speculation that
an uneven U.S. economic recovery will erode demand for the
industrial metal.

The Federal Reserve is expected to keep borrowing costs at record

lows to bolster the economy as home sales remain slack. Copper
inventories monitored by the Shanghai Futures Exchange fell to
the lowest level in 11 months. Before today, prices rose 26
percent in the past year as manufacturing increased in China, the
world’s biggest metal user.

Copper futures for December delivery fell 2.35 cents, or 0.7

percent, to settle at $3.481 a pound at 1:24 p.m. on the Comex
MCX SUPPORT RESISTANCE in New York. The metal has gained 4 percent this year.
Rs. 355 Rs. 360
Copper Inventories fell 3.9 percent to 94,365 tons, the Shanghai
Rs. 350 Rs. 365 exchange said today. That’s the lowest level since the week ended
Oct. 9, 2009. Financial markets in China are closed from
yesterday to Sept. 24 for the Mid-Autumn Festival.

Zinc
OUTLOOK

Copper is at a technical point where it’s looking for direction.The

Chinese will provide long- term support for the market with
continued drawdowns in above- ground stock. But absent new
economic stimulus in the U.S., copper is susceptible to a downside
correction.

The data suggest that the U.S. housing sector is slowly pulling
itself off the canvas after a knockout punch. Construction
accounts for a quarter of demand for copper, used in wiring and
plumbing, according to the Copper Development Association.

MCX SUPPORT RESISTANCE

Rs. 88.00 Rs. 92.00
Zinc
Rs. 80.00 Rs. 105.00
Crude oil
ENERGY

MAJOR HIGHLIGHTS

• U.S. crude, gasoline stockpiles unexpectedly rise - API

• Technicals show prices to rise towards $76
• Coming Up: U.S. EIA oil inventories; 1430 GMT

MARKET RECAP

Crude oil prices fell for the fifth time in six days on Tuesday,
wilting amid high oil inventories and the Federal Reserve's
continued concern about sluggish economic recovery.

MCX SUPPORT RESISTANCE Crude futures extended losses right before the close of the oil's
Rs. 72.00 Rs. 75.00 open outcry trading session in New York after the U.S. Federal
Crude oil Reserve said it would keep interest rates exceptionally low and
Rs. 70.00 Rs. 78.00 that the central bank was prepared to provide additional
accommodation if needed to support recovery.
Natural Gas
The October U.S. crude contract expired on Tuesday, helping
keep pressure on the front month and nearby months, industry
sources said.

U.S. crude for October delivery fell $1.34, or 1.79 percent, to

settle at $73.52 a barrel as it expired and went off the board.
Trading ranged from $72.81 to $74.60.

U.S. November crude fell $1.22, or 1.6 percent, to settle at

$74.97 a barrel.ICE Brent for November fell 90 cents to settle at
$78.42.

OUTLOOK

There was pressure on the (U.S.) October contract into its

expiry as people realized that we have a glut of supply. That
pressed the market down.
MCX SUPPORT RESISTANCE

Rs. 225 Rs. 235 An analyst survey ahead of the API report had yielded a forecast
Natural Gas for crude inventories to be down 1.9 million barrels last week
Rs. 205 Rs. 245 because of lower imports from Canada due to the Enbridge
pipeline outage and as tankers navigated around stormy
weather.
 Pivot Point: An Intra- Day trading tool.

PP: Pivot Point: This is trigger point for Intra Day buy/sell based on the price range of the previous day. R1:
Resistance one: 1st Resistance over PP. R2: Resistance two: 2nd Resistance over R1. S1: Support one: 1st
support after PP. S2: Support Two: 2nd support after S1. S3: Support Three: 3rd support after S2.

As per the tool, the trader should take BUY position just above PP and keep the stop loss of PP and the first
target would be R1. If R1 is crossed then R2 becomes the next target with the stop loss at R1. Than if R2 is
crossed then R3 becomes the next target with the stop loss at R2.

Similarly if price goes below PP, the trader should SELL and keep the PP as Stop loss and the first target would
be S1. If S1 is crossed then S2 becomes the next target with the stop loss at S1. After that if S2 is crossed then
S3 becomes the next target with the stop loss at S2. This is an intra-day tool. The key to use of this tool is the
-use of suggested STOP LOSS.

Trading Laws:
• A Trader not observing STOP LOSS cannot survive for long.
• Don’t try to anticipate the change in main trend, so don’t go against trend.
• Technical Calls recommended in this report is valid for Intraday only.
• Never re-schedule your stop loss, square up first and then take a fresh view.
• Book small losses by buying / selling near support / resistance, and look for big Gains, this will
maximize the gains.

Warnings:
• Short-term trading on the basis of technical is a high risk and skill oriented venture and may result
in huge losses also. Traders doing so are doing at their own risk. We are not responsible for any
damages.
• Mostly it is not advisable to buy/sell a stock if it touches the target price first and then comes
within recommended range of buy/sell.
• Never wait for actual target to be reached book profits slightly before target price, if prices show
sluggishness. Always follow stop losses to avoid larger losses.
Prepared By:

Sunil Rokade Rahul Bhandawat

Commodity Research Analyst Manager-Equity Research
Focus Shares & Securities Pvt. Ltd. Focus Shares & Securities Pvt. Ltd.
sunil@focuscomtrade.com rahul@focuscomtrade.com

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This document has been prepared by the Research Division of Focus Shares & Securities Pvt. Ltd. Mumbai, and meant for use by the
recipient only as information and is not for circulation. This document is not to be reported or copied or made available to others
without prior permission of Focus Shares & Securities Pvt. Ltd. It should not be considered or taken as an offer to sell or a solicitation to
buy or sell any security. The information contained in this report has been obtained from sources that are considered to be reliable.
However, Focus Shares & Securities Pvt. Ltd. has not independently verified the accuracy or completeness of the same. Neither Focus
Shares & Securities Pvt. Ltd. nor any of its affiliates, its directors or its employees accepts any responsibility of whatsoever nature for
the information, statements and opinion given, made available or expressed herein or for any omission therein. Recipients of this report
should be aware that past performance is not necessarily a guide to future performance and value of investments can go down as well.
The suitability or otherwise of any investments will depend upon the recipient's particular circumstances and, in case of doubt, advice
should be sought from an independent expert/advisor.