Nifty

If nifty today sustain and close above 4910 then the medium term strength will be maintained.... and the nifty can touch 4990. overall there would be positive movement in the market

A example of trendline

Hi this is a chart showing us the example of trendline.
If u look at this chart u will see that whenever a trend line is broken the new wave or trend is follow from bearish to bullish and vice-versa!
In this chart suppose if any one hav to trade so first he would hav purchased at 51700 as it is facing support at that level (with a stoploss of 51500 to be on the safer side) and then he would sell the same at 52845 where the rising trendline is broken... hmmmm... now he would exit the current position and enter the new position by selling the same order... and would hav exited at 52250 where it is facing support or he should wait for the trendline to give a signal. Again he get opportunity to enter at 52580 as it is confirmed that the trend will continue as it has rebound from 52250 and broken the fallin trendline and would hav exited at 53100 where the rising trendline is broken.


So that was a example of trendline where one do not hav to see and indicator ooorrr volume or candlestick and one would hav earned a good amount of money by trading in silver. You can get this opportunity in forex or stocks or fno..!

It look simple but when u try to trade u really miss the opportunity bcoz u get scared what if i will face a loss... but i hav learn a new thing "If u fear loss... then profit will fear u". Enter the trade with a stoploss so that u can minimize your loss with ratio to profit.



Regards
Rinkesh Jain

Do comment and let me know whether you finding it usefull or not.

Silver Chart

The silver chart is forming an triangle formation. The range formed is 52300 to 53000! ANy break out towards the upward or downward would lead to continuing of the trend.

Resistance and support for the week:-
R4 53220.00
R3 52532.50
R2 52303.33
R1 52074.17
S1 51615.83
S2 51386.67
S3 51157.50
S4 50470.00

Nahar Spinning

Sector:- Textile(Manufacturing)
52 week H/L :- 137.40/45.04
Book Value :-184.65
EPS :- 33.20(mar' 11)
P/E :- 1.75
Industry PE :- 9.32
Face value :- 5
Divid :- 40.00%



Future Outlook

Nahar Spinning is in the process of adding 90,000 spindles (30,000 spindles each in three of its manufacturing units) in a phased manner which is going to complete by in DEC 2011 as the project is going as per schedule . The combined capex of the entire expansion plan is ~Rs 3,500 mn, of which Rs 1,930 mn is funded through TUFS loans at the rate of 6.6%.

The expanded capacity is expected to become operational in FY12. Post expansion, Nahar Spinning will have a total capacity of 440,000 spindles and 1080 rotors.

The expanded capacity will help Nahar Spinning better capitalise on the healthy demand prospects in the cotton yarn segment.


Recommendation

-We would recommend “BUY” for this company.
-The expected growth of the company in coming year will be 13.85% annually.
-Return on equity will be 14.58% on an average.
-Expected EPS will be Rs42.29/- in year 2014 from current Rs33.20/-.
-Even though the debt is increasing all the debt are secured debt, and CRISIL have given AA and A!+ rating for the current debt.
-The government earliar kept the limit on the amount of export to the foreign countries to maintain stability in Indian market, which is to removed by the government in coming year.
-Various help from the government through schemes like TUFS.