International gold prices witnessed third straight weekly gain to settle at $1735.4 per ounce, the longest winning streak since this January. Mounting expectation of monetary stimulus from Europe and the US made investors increase their gold holdings, sending gold ETF prices soaring. The HDFC MF Gold ETF gained 9 per cent to register an all-time high at Rs 3270 on Saturday. However, it failed to sustain at higher levels and gave away some gains to settle at 5 per cent weekly gain. This ETF has been on a long-term uptrend, shaping higher peaks and troughs, ever since its listing in August 2010.

Medium as well as short-term trends are also up for this ETF. The daily and weekly indicators are hovering in the over brought territory implying that minor correction or sideways movement can occur in the short-term. Immediate key supports are at Rs 3,000 and Rs 2,950. A fall below the second support can pull the ETF down to Rs 2,850 in the medium-term. Next significant medium-term support is pegged at Rs 2,725 levels. On the other hand, the uptrend will encounter resistances at Rs 3,200 and then at Rs 3,270 levels. Next important medium-term resistances will be at the psychological levels at Rs 3,400 and Rs 3,500.

NMDC (Rs 187.6)

NMDC has been on a sideways consolidation in the band between Rs 180 and Rs 200 since early July this year. On September 6, the company announced that it has incorporated a Joint Venture Company with Jharkhand State Mineral Development Corporation Limited (JSMDC). Further, the Government announced the sale of 10 per cent of its stake in the company through the exchanges on Friday. The stock advanced 2 per cent with above average volume in that session.

The stock is reversing higher from the lower boundary of the sideways consolidation phase. A decisive break through of the upper boundary at Rs 200 will strengthen the bullish momentum and take the stock higher to Rs 220 and then to Rs 240 in the medium-term. But, a plunge below the Rs 180 support level will pave way for a decline to Rs 170 and to Rs 156 in the forthcoming weeks. Next support is at Rs 137.

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