Gold surges to near $1,000; touches new record in India

Gold prices surged to near 1,000 dollar level in global markets on Friday on investment buying while touching an all-time high in India on festive demand.

Gold in the US futures market reached 999.50 dollar last night, the highest price since Feb 23 helped by lower equities as sluggish stock markets diverted funds to the bullion as a safe haven. The MSCI World Index of shares is down 2.4 per cent this week, heading for its first decline in eight weeks.

The metal also gained as investors sought a haven on concern that a global recovery might be slower than expected. The US jobless rate in August jumped to 9.7 per cent, the highest since 1983.

A firming trend in the US markets, which normally set price trend in Asian region including India, drove the gold prices in India to its record high levels amid brisk buying by stockists and jewellery makers for the ensuing marriage and festival season.

The bullion in the national capital today shot up to an all-time high of nearly Rs 16,000 per 10 gram on last minute heavy purchases by traders to build up stocks before the start of the inauspicious 'Sharad' tomorrow.

The surge in the gold rates was led by heavy demand from jewellers and stockists before Shradh, a inauspicious fortnight for making any fresh purchases, marketmen said.

"We have plenty of orders for jewellery in hand and have to purchase it before the fortnight of Sharads begin," said Delhi-based jeweller Rakesh Anand.

Further the uncertainty in the stocks, which remained more volatile in last one-week, left little option for the investors but to invest in bullion as a safe haven.

In the last one week the Bombay Stock Exchange index Sensex fell for four consecutive days, but gained 290.79 points today at 15,689.12, the last trading day of the week.

Silver ready surged by Rs 700 to Rs 25,300 per kg and weekly-based delivery by Rs 560 to Rs 25,700 per kg.

Standard gold and ornaments shot up by Rs 200 each to Rs 15,900 and Rs 15,750 per 10 gram respectively. Sovereign also rose to all-time high by gaining Rs 100 to Rs 12,800 per piece of eight gram.

Source: EconomicTimes

IFCI has a short-term target of Rs 71: Thacker

Thacker told CNBC-TV18, "They have been buzzing around well. Not only the financials, but the public sector undertaking (PSU) banks especially the smaller ones also seem to have joined the rally. I like IFCI a lot in the sense that we have seen since the start of the rally in the month of March the stock has made a high at Rs 57 in the month of June and few days back it recorded a high of around Rs 57."

He further added, "Today, it is trading above the psychological mark since it’s a weekend closing, weekly closing for the stock and its closing at new highs for the upmove. So momentum should be good for the stock, we have seen intraday excellent addition in the open interest; Rs 70 is the short-term target we are looking for the stock."

Source: Moneycontrol

Subscribe to Oil India IPO: Brokerages' unanimous view

Oil India, the second largest oil and gas company in India, will come out with an initial public offering (IPO) of 26,449,982 equity shares of face value Rs 10 each. Its issue price has been fixed at Rs 950-1050 per equity share and it will raise around Rs 2,512.75-2,777.25 crore.

The issue comprises a net issue to the public of 24,045,438 equity shares and a reservation of 2,404,544 equity shares for subscription by eligible employees, at the issue price. The issue shall constitute 11% of the fully diluted post-issue capital of the company.

Research and broking firms have recommended investors to subscribe to the issue.

Source: Moneycontrol

Bajaj Auto Finance (Rs 224.5): Buy

We recommend a buy in Bajaj Auto Finance from a short-term horizon. It is evident from the charts that the stock has been on an intermediate-term uptrend, forming higher peaks and troughs since March low of Rs 43. In mid-July, the stock took support around Rs 140 and resumed its uptrend. It is trading well above 21- and 50-day moving averages. On September 1, the stock jumped 8 per cent accompanied with good volume, penetrating the short-term resistance at Rs 215. This break through has reinforced the stock’s bullish momentum. Both the daily as well as weekly relative strength indices are featuring in the bullish zone. The daily moving average convergence and divergence is signalling a buy. Our short-term outlook is bullish on the stock. We anticipate the uptrend to continue until it hits our price target of Rs 247. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 212.

Source: thehindubusinessline

Mkts likely to see 10-15% sell-off: Shankar Sharma

Shankar Sharma, Vice Chairman and Joint Managing Director of First Global said that that market was looking tired within a range and it was experiencing a stock-specific movement. He is of the view that the current rally in the markets is being led by a handful of stocks which is disconcerting. According to Sharma, a 10–15% sell-off in the market is very likely. Sharma further said that Sensex could go to 13,000 before it goes back to 17,000.

Source: Moneycontrol

Largecap IT stks to trade sideways for 6-9 mths: JPMorgan

There have been a lot of divergent takes in the information technology space. Many investment banks seem to think the worst is over and there would be a rapid acceleration of business traction from here. Some others are not quite so convinced at these valuation levels.

However, Manoj Singla of JPMorgan supports the first camp. He sees improvement in fundamentals, which would accelerate business moving to the end of this year. He further says technology stocks have discounted a lot of good news. However, he added, “We will probably be in a sideways trading zone for most of the large caps IT stocks in the next 6-9 months.”

Source: Moneycontrol

Balaji Telefilms (Rs 66.3): Buy

We recommend a buy in Balaji Telefilms from a short-term perspective. It is evident from the charts that in mid-July it took support around Rs 40 and resumed its intermediate-term uptrend, which has been in place since March low of Rs 24.8. Moreover, it has been on a medium-term uptrend from July low. The stock breached its 21- and 50-day moving averages in mid-August and is trading well above them. On September 2, the stock penetrated its near-term resistance at Rs 64 by gaining 9 per cent, accompanied with high volume. The daily relative strength index has re-entered the bullish zone and weekly RSI is on the verge of entering this zone. Besides, the weekly moving average convergence and divergence indicator is likely to enter the positive territory. Our short-term outlook is bullish on the stock. We expect its up-move to continue until it knocks our price target of Rs 73. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 63.

Source: thehindubusinessline