Tuesday, April 16, 2013

Is falling Gold Good News for Indian Stocks

Analysts are suggesting three positives for the Indian Stock markets:

01. Falling Inflation
02. Lower Crude prices
03. Falling prices of Gold

Our current account deficit is large mainly because of huge imports of Gold and Crude, therefore, a fall in prices results in lower deficit which could start a virtuous economic cycle.

As Indians, let us hope so.

As traders, we can trade the markets without getting influenced by news or perception. As of now, the Nifty is in a  downtrend, for the short term trader, a trading range is developing with resistance at 5600 and support at 5500. Trade a break from this range on either side. If the news is going to make the markets bullish, a breakout will  put us in a long trade.


2 comments:

amit said...

how to find supply and demand levels in a stock ???

gourv said...

Hello Sir,

Hope you would like to answer the question.Why don't you open a hedge fund and let say charge 2% of total investment as management fee and 20% of the profit.

Regards
Gourav