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.

Also, here is my take on the recent move in Gold.

Take care and good luck!

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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

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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!