Sunday, December 23, 2012

Watchlist for next week

Following are a few stock that I like for the coming week. The important levels are marked on the charts themselves. Click on them for a larger view.







Take care and good luck!

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Saturday, December 22, 2012

Gold Weekly Chart Anaylsis

Its been interesting watching the action in gold lately and even more interesting listening to the "experts" and their views on where it is headed. It seems like every time gold makes a big move either up or down, we have people giving either absurd high targets or ridiculous low targets. It helps sometimes to just ignore the noise, step back and have a look at the bigger picture. Taking that literally, below is a weekly chart of gold. It turns out that gold has been stuck in a trading range (~148-174) for the past one and a half years or so.




And here's the weekly chart since 2005. Considering the move that gold has made in the last five years or so, is it really surprising that its been stuck in a trading range for a while now? Seems to be making the logical move, doesn't it? 



Sometimes all one's gotta do is relax, take a deep breath, wait for the weekend, have some bourbon, and before you know it, it all makes sense!

Also, here is a watchlist for next week.
 
Take care and good luck!

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HUDCO Tax Free bonds 2012-13 review

After REC, PFC and IIFCL tax free bonds, its now the turn of HUDCO to come up with similar bonds. Following are the details of this issue. There is no 20 year option this time, unlike the IIFCL bonds.

Face Value: Rs. 1000
Issue Price: Rs. 1000
Nature of Bonds: Secured
Minimum Application: Rs. 5000
Issue Opens on 9th January 2012
Issue Closes on 22nd January 2013
-->
Duration
10 years
15 years

Frequency of Interest Payment
Annual
Annual

Coupon Rate
7.34%
7.51%

Coupon Rate for Retail Individual Investors (less than 10 lakhs)
7.84%
8.01%


Even NRIs are allowed to apply for these bonds.

These bonds are rated CARE AA+‘ from CARE and ̳IND AA+‘ from IRRPL
 
The income by way of interest on these Bonds is fully exempt from Income Tax as per provisions under section 10 (15) (iv) (h) of IT Act.

These bonds certainly do present a good investing opportunity for those in 20% and 30% tax bracket, as the interest income from these is tax free and definitely a better bet than investing in bank FDs. And with the RBI expected to cut rates in the early half of next year, this might be a good time to lock some money if you are planning to invest in tax free bonds.

Take care and good luck! 

Friday, December 21, 2012

CARE IPO allocation status

The following link will let you know if you have been got any allotment under the CARE IPO.

http://mis.karvycomputershare.com/ipo/

Take care and good luck!

Tuesday, December 18, 2012

IIFCL Tax Free bonds 2012-13 review

After REC and PFC tax free bonds, its now the turn of India Infrastructure Finance Company Limited to come up with similar bonds. These bonds are very similar to those issued by REC and PFC but very interestingly, unlike REC and PFC, these bonds also have a 20 year option. Following are the details of this issue.

Face Value: Rs. 1000
Issue Price: Rs. 1000
Nature of Bonds: Secured
Minimum Application: Rs. 5000
Issue Opens on 26th December 2012
Issue Closes on 11th January 2013
-->
Duration
10 years
15 years
20 years
Frequency of Interest Payment
Annual
Annual
Annual

Coupon Rate
7.19%
7.36%
7.40%
Coupon Rate for Retail Individual Investors (less than 10 lakhs)
7.69%
7.86%
7.90%

 
The income by way of interest on these Bonds is fully exempt from Income Tax as per provisions under section 10 (15) (iv) (h) of IT Act.

These bonds certainly do present a good investing opportunity for those in 295 and 30% tax bracket, as the interest income from these is tax free and definitely a better bet than investing in bank FDs.

Take care and good luck! 

Sunday, December 16, 2012

Watchlist for next week - Part 2

As promised, here is the second part of the watchlist for next week. Here is the link to Part 1 in case you missed it.





You can follow me on twitter for latest blog updates. Also, here is the link for free subscription to the blog.

Take care and good luck!

Watchlist for next week - Part 1

Here are a few stocks I like for next week. I have commented on the charts itself. You may click on the charts for a better view.





I will be back with Part 2 of the watchlist later. You can follow me on twitter for latest blog updates. Also, here is the link for free subscription to the blog.


Take care and good luck!

 

Friday, December 7, 2012

REC Tax Free Bonds (December) 2012-13 Subscription

As of end of the day on Friday, the bonds are subscribed 1.56 times. Do keep in mind the issue size is Rs. 1000 crores but there also exists an option to retain over subscription aggregating up to shelf limit of Rs. 4,500 crores.

The distribution of participation so far has been as follows.

Category
No. of times subscribed
Category 1
Public Financial Institutions
0.12
Category 2
Companies
2.71
Category 3
Resident Indians investing more
than 10 lakhs
1.87
Category 4
Resident Indians investing less
than 10 lakhs
2.09

There has not been much interest from financial institutions, but as expected there has been good participation from the retail investor as the returns offered are quite attractive for those in the 20% and 30% tax bracket.

Take care and good luck!

Who says Technical Analysis does not work?

Just one chart and I rest my case.....


Take care and good luck!