Return of 500% in just 5 years.: January 14, 2011

Friday, January 14, 2011

GOLD MIGHT HAVE COMPLETED WAVE-5

WE THINK THAT GOLD HAS COMPLETED WAVE-5 OF THE UPMOVE STARTED FROM $681 ON 26.10.08 (WEEKLY CHARTS) TO $1432.50 ON 12.12.10(WEEKLY CHARTS). THE TARGET FOR WAVE 5 OF $1410 ACHIEVED. NOW THE CORRECTIVE DOWN MOVE OF WAVE-A HAS TARGETS OF $1284, $1238, $1192 AND $1127 UNLESS HIGH OF $1432.50 CROSSED.

NIFTY REACHED SECOND PROJ TARGET OF 5654 ON 30MIN CHARTS

ON A 30 MIN CHART NIFTY MADE A HIGH OF 5874.20 ON 12.01.11 AT 3:30 AND A LOW OF 5695.35 ON 14.01.11 AT 10:00. TAKING RETRACE MENT FROM HIGH TO LOW THE 78.6% RETRACEMENT CAME AT 5835.93 AND TODAY NIFTY MADE A HIGH OF 5833.65 AT 1:30. NOW THE DOWNWARDS PROJECTION COMES TO 5723.12(BROKEN) AND 5654.30(BROKEN) BUT NOT ON CLOSING BASIS. IF 5654.30 ALSO BREAKS ON CLOSING BASIS, THEN NEXT TARGET WILL BE 5544.

BINGO! NIFTY REACHED OUR FIRST TARGET OF 5788

TODAY ITSELF WE RECOMMENDED TO BUY NIFTY AGAIN AT CMP OF 5735 WITH A STOPLOSS OF 5680 FOR A TARGET OF 5788, 5840 AND 5886.OUR FIRST TARGET OF 5788 ACHIEVED. BINGO!

NIFTY ALWAYS MADE HIGHER TOP AND HIGHER BOTTOM SINCE 28.10.08

SINCE 8TH MARCH 2009 NIFTY HAS ALWAYS MADE HIGHER HIGH AND HIGHER BOTTOM. MOREOVER, NIFTY HIGHER LOW NEVER BROKEN THE PREVIOUS HIGHER LOW MADE - A TYPICAL SIGN OF A BULL MARKET.

LOW MADE : 27.10.08 NIFTY 2252.75
HIGHER TOP : 05.11.08 NIFTY 3240.55
HIGHER LOW: 20.11.08 NIFTY 2502.90
HIGHER TOP : 12.06.09 NIFTY 4693.20
HIGHER LOW: 13.07.09 NIFTY 3918.75
HIGHER TOP : 20.10.09 NIFTY 5181.95
HIGHER LOW: 03.11.09 NIFTY 4538.50
HIGHER TOP : 06.01.10 NIFTY 5310.85
HIGHER LOW: 08.02.10 NIFTY 4675.40
HIGHER TOP : 07.04.10 NIFTY 5399.65
HIGHER LOW: 25.05.10 NIFTY 4786.45
HIGHER TOP : 23.08.10 NIFTY 5549.80
HIGHER LOW: 31.08.10 NIFTY 5348.90
HIGHER TOP : 07.11.10 NIFTY 6338.50
HIGHER LOW: 26.11.10 NIFTY 5690.35

NOW THE CRUCIAL POINT IS IF THE HIGHER LOW OF 5690.35(SHORT TERM) AND 5348.90 (LONG TERM) HOLDS THEN NIFTY CAN SCALE ALL THE WAY BACK TO 6338.50 AND EVEN HIGHER.

BUY NIFTY AT CMP OF 5735 WITH A STOPLOSS OF 5680

WE RECOMMEND TO BUY NIFTY AGAIN AT CMP OF 5735 WITH A STOPLOSS OF 5680 FOR A TARGET OF 5788, 5840 AND 5886.

RAKESH JHUNJHUNWALA BOUGHT DELTA CORP

AS PER DISCLOSURE FILED WITH SEBI ON 10.12.10 MR. RAKESH JHUNJHUNWALA BOUGHT 465000 SHARES OF DELTA CORP FROM NSE AND 35000 SHARES FROM BSE THROUGH ALCHEMY SHARES AND STOCK BROKERS @ 87.65 APPROX.( A HOLDING OF RAKESH JHUNJHUNWALA).

Rakesh Jhunjhunwala & Radhakrishna Damani (of DMart) were allotted shares of Delta Corporation, @ Rs.51 a company owned by Jaydev Mody & Zia Mody, vide preferential allotment in September 2010.

Delta Corp is being touted as a promising investment on the basis that it has interests in gaming, hospitality and real estate, operates offshore and onshore casinos in Goa and owns a real estate company in East Africa through a 40:60 joint venture with Reliance Industries Ltd’s chairman Mukesh Ambani. Delta Corp‘s Q2 FY 2011 results were spectacular.

BINGO! VENKEYS REACHED OUR SECOND TARGET OF 674 YESTERDAY

ON 13.01.11 WE RECOMMENDED TO BUY VENKEYS AT CMP OF 625 WITH A STOPLOSS OF 600 FOR A TARGET OF 654 AND 674. BINGO! OUR SECOND TARGET OF 674 ACHIEVED YESTERDAY ITSELF..

STOPLOSS OF NIFTY AT 5730 TRIGERRED

OUR STOPLOSS OF NIFTY AT 5730 TRIGERRED, BUT BRAVE HEART TRADERS CAN KEEP LAST STOPLOSS OF 5680. LETS HOPE NIFTY HOLDS IT, OTHERWISE ONLY GOD KNOWS WHAT WILL HAPPEN?

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Trading in stock market is very risky. Please analyze yourself what is your risk profile. This blog is not perfect. This is not an advisory service to buy or sell. The contents of “this blog” are only for educational purposes. No liability is accepted for any content in this blog.

The author is not a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and that you confirm the facts on your own before making important investment commitments

SGRG – SIP: BE THE MASTER OF YOUR OWN DESTINY

Welcome to the World of S.I.P. (Systematic investment Plan).

Thanks to the massive amount of time, money and efforts put in by the Mutual Fund Industry over the years, investors are now very much aware of this technique of investing.

Lets revisit the logic of SIP. We call it SGRG-SIP.

In a SIP you invest a fixed sum at a particular interval ( say a month) over a given period of time. In SGRG-SIP, instead of choosing a regular MF scheme, we decide an Index Benchmark, which can be NIFTYBEeS, JUNIORBEeS, GOLDBeS, BANKBEeS depending upon your risk profile.

Disciplined Approach

The first benefit of a SGRG-SIP is that you imbibe discipline in your investments. On a given date of every month you buy the pre-decided index Benchmark. However, the amount to be invested every month keeps on changing i.e. It will be communicated by us every month. You don’t really apply your mind whether to buy or not. Just go ahead and do it.

Don’t worry about the timing

Let me choose the worst possible month in recent history – January 2008 I Hope everybody remember this month.

So we baptize you with fire, by making you begin investing from 26^th December, 2007, a sum of Rs 25,000 every month on the last day of the month. This you religiously do every month for 36 months i.e. 25^th Decemeber, 2010.

Lets see how the Nifty faired. The Nifty that was 6070 on 26^th December 2007 closed on December 26^th 2010 at 6013. This is a fall of 0.94%. And say you like Reliance a lot. The price of Reliance on 01.01.08 was 1445 and on 01.03.12 it was 811 down -43.80% over a period of 3 years.

But our’s SGRG-SIP in Index benchmark’s actually gave A WHOPPING Annualised Return of over 50% p.a. during the same period.

What we mean to say is since, we cannot track the working and performance of each and every scrip, when you fundamentally like a stock, you should like the stock more if the price falls, other things being same. But human psychology will ensure that you get jitters when the price falls. And expecting that the price will fall further you don’t buy. A further fall in price will validate your fears and you would wait for a still larger dip. One fine day the stock will bounce back, leaving you in a frown.

But a SGRG-SIP will ensure that your fear does not come in the way of your investment. This ability of SGRG-SIP to systematically buy Index Benchmarks at all levels ensures good returns in a volatile market. So honour the sanctity of a SIP.

Power of Compounding

The power of compounding will ensure that even small investments in early part of life will leave a giant footprint over a longer period of time. You don’t really have to save big. The stress is not on the amount, but on the need to start early. And even if you have lost considerable time, don’t worry. Today is a good day to begin ! Let us also dispel a myth that SGRG-SIP is only for beginners or for small investors. Nothing stops you from allocating even large sums for SGRG-SIP. In fact experienced investors would find it more useful.

SOME REAL FACTS ABOUT SGRG–SIP

PRICE	S&P	JUNIOR	BANK	GOLD	SILVER
	NIFTY	NIFTY	NIFTY	SPOT	SPOT
01.01.05	4484	2080	3531	6301	10415
01.12.10	9095	5871	11988	29035	55900
% P.A.	15%	26%	34%	52%	62%
SGRG %P.A.	58%	399%	679%	1201%	10000%

Here are some real facts about our SGRG – SIP. We have compared the prices of some of the Indexes and Top Commodities in the World market since 1^st Januray, 2005. Here also you will appreciate that SGRG –SIP outforms all the asset class mentioned below by 100% at least.

Be the master of your own fortunes.Write your own success story. Choose your own Index Benchmark, which you will be investing over a period of time. Since your returns will be function of what asset class you choose, ensure that you put in serious efforts in terms of understanding what you are investing in. Ensure that the Index Benchmark you choose match your risk stance and return expectations.