Please find the article given by in Emagazine of Business Standard on 21.08.13

1. TALK SHOW
2
‘Buying opportunity in gold for
an upside of Rs 32,000’
Is Gold likely to surpass the recent highs of
Rs. 33,000?
Yes, the probability of crossing the recent high
of Rs.33,000 is very high. Even though, Gold
has major resistance at 32,000 levels, a
breakout and close above that level will take it
to Rs.34,500 by year end.
In the short term, what are the levels that
gold is likely to trade and why?
The yellow metal has seen a
sharp up move of approximately
Rs.4000 in last one week. As the
up move was very sharp, there is
a possibility of consolidation or a
correction from present levels.
However, looking at the overall
scenario gold looks strong on
charts so even on correction in
the short term, it should be used as buying
opportunity for an upside target of Rs.32,000.
The overall range for gold seems to be
between Rs.28,500 to Rs.32,000. Breakout on
either side will give a fresh rally for Rs.3000 on
higher or on lower side.
Even, silver prices have seen a considerable
uptick. What should one do at current levels?
Silver too has seen a steep upmove of
approximately Rs.10,000 over the last few days.
Currently, the commodity looks highly
overbought and there can be some correction in
the short term. Any dips till Rs.47,000 or
Rs.48,000 should be used as a buying
opportunity for upside targets of Rs.54,000. If
Silver breaks and closes above the levels of
Rs.54,000 then an extended rally can be seen
till Rs. 59,000 in next two to three months.
Do you see crude heading towards USD 110
on the back of geopolitical concerns?
Crude looks strong on charts since the past few
weeks. NYMEX Crude has been moving in a
range of $8 i.e. $102 on lower to $109
on higher side. Looking at the trend
and the geopolitical tensions going on
across the globe, it seems that this time
NYMEX Crude will touch $110 and if it
manages to break the resistance of 110,
than further upside can be seen till
$115 in next one to two months.
Among the industrial metals, which
are the lucrative buys in the current market?
Among the base metals Copper or Nickel are the
best picks as an up move of approx 15% can be
seen in next one to two months. Copper can
touch levels of Rs.500 and Nickel has the
potential to touch levels of Rs.980 or Rs.1,030.
What is your view on Rupee.
Rupee looks weak on charts. And given the
current pace of depreciation, Rupee at 65 may
be a reality in next 10-15 days. Currently, the
overall range for rupee is 61 to 65. If the level of
65 is broken then the next level is 68.
SSuummeeeett BBaaggaaddiiaa,,
Head (Commodity
and Currency
Research),
Destimoney
Securities spoke
to JJiinnssyy MMaatthheeww
on precious
metals, crude and
rupee outlook
The fundamental
reason supporting
the up move in gold
is rising demand
ahead of the festive
season and weak
rupee
Read more...
Chandan Taparia, Derivative Analyst, Anand
Rathi Financial Services
Nifty future has been making lower tops and
lower bottoms from last five consecutive weeks
and it fell down sharply in last three sessions
from 5759 to today's panic low of 5200 levels.
Maximum Put OI is at 5300 strike but fresh call
writing seen at 5400 and 5500 strike. Overall market trend
is negative but the......
Mudit Goyal, technical analyst,
SMC Global
Nifty is continuously trading lower in downward
sloping channel on daily charts which suggest
more downside in near term. From current
levels, 5330-5300 is major support zone from
which we can see small and decent bounce
which would be consider as selling opportunity for near
term. Any Breakdown below 5300 can drag ...
Read more...

2. FEATURES
3
Jitendra Kumar Gupta
A
s trouble brewed at Financial
Technologies’ (FT) promoted
National Spot Exchange
Limited (NSEL), the FT stock came
under pressure falling from Rs 730
levels in mid-July to recent lows of
Rs 105.45. FT owns 99 per cent in
NSEL. Although the FT stock has
recovered to Rs 141 levels currently,
in no way does it suggests that
optimism is returning. In fact,
experts say the overhang remains
because of lack of clarity on the
payment crisis at the NSEL. As a part
of initiatives to resolve the issue,
NSEL had proposed to pay Rs 174
crore as a first pay-out on Tuesday.
However, till Monday the exchange
has managed to get about Rs 81
crore, which suggests there is still a
shortfall of large money. Queries sent
by Business Standard to NSEL
remained unanswered till Tuesday
evening. Many of the broker
members have not paid the dues,
while others have paid less than
their obligations. Consequently, the
Street is worried as in case of
shortfall of funds in the first
instalment itself, the chances of
default has only increased. In this
backdrop, experts believe investors
should stay away from FT stock, as
there could be more downside from
current levels.
"I do not think the investors
should jump in at this point in time.
One should wait for more clarity,
especially how credibly they can
resolve this (NSEL payment crisis)
issue. Then only the trust of
investors will come back and that
will be the time to consider buying
the stock," said Deven Choksey, MD,
KR Choksey Securities.
Although there are a few experts
who believe that there is value in
the FT stock, it is better to be safe
than sorry in the current market
environment. Most experts also
believe that the situation at NSEL
could worsen further before
improving. Hence, the FT stock could
remain volatile.
"I believe there is high
probability of shortfall in payments,
in which case we do not know how
the liability is going to be fixed. Will
it have an impact on FT and its
promoters? That, time only will tell.
In case of shortfall there could be
haircut in payments, that also we
will have to see how much it is
going to be?," said an analyst who
tracks the company with a leading
broking house.
While the NSEL payment issue
will remain a key overhang for FT
stock, analysts suggests that
investment in Multi Commodity
Exchange (MCX) could be relatively
less risky because there is no direct
link of MCX with the crisis. Also, FT
holds a minority stake in MCX.
Because of the crisis at NSEL, the
initial fear was that this will also
engulf the other promoter group
exchanges in terms of fall in
business. However, volumes at MCX,
MCX-SX and Indian Energy
Exchange have been good over the
last few days. The volumes have not
fallen as they were expected earlier.
That apart, at Rs 269 per share,
there is value in MCX’s stock. At
current level, its market
capitalisation works out to Rs 1,300
crore, or about 1.7 times the cash
and equivalent in the company’s
books (net Rs 750 crore) after
adjusting for the Rs 450 crore
margin money (belonging to
customers and broking members).
Further downside not ruled
out for FT stock
Although the FT stock has recovered to Rs 141 levels currently, in no way does it
suggests that optimism is returning