make more - oct 2011

8/4/2019 Make More - Oct 2011

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ndian equity indices went on to undo all the good work done inthe September F&O expiry session as they shaved off about oneIand half a percent and drifted below the psychological 16,500

(Sensex)and 4,950 (Nifty) levels on Friday. Furthermore, thefrontline indices even got obliterated by 12.8% for the quarter

ended September 30, 2011, the biggest quarterly decline since the25% plunge in the October-December quarter of 2008 amid the

g l o b a lf i n a n c i a lcrisis andtheir thirds t r a i g h tq u a r t e r l ydecline. Thed o m e s t i cb o u r s e swere oncea g a i ntormentedby g lo ba ldevelopmen

ts on the last trading session of the week as investors fretted overglobal economic growth prospects which prompted them to takeprofits off the table amid little signs of recovery. The better thanexpected US GDP data which showed that the economy grew at a1.3% pace in the Q2 along with the upbeat US Jobs data failed tobolster local sentiments.

case. The sharp plunge came despite the group's clarification that it wasnot a beneficiary of any telecom licence issued in January, 2008.Meanwhile, local sentiments were also undermined by reports thatIndia's revenue collection during the second quarter of current financialyear has declined significantly, which is indicative of the fact that Asia's

third largest economy is slowing down, due to the weak global economicenvironment and nonstop hike by RBI. The overall advance tax collections

On the domestic front, the Union Cabinet approved the new Minesand Minerals Development and Regulation Bill, 2011 which will have declined to 12% in July-September 2011 from 19% in April-June 2011.mandate companies operating in the sector to provide 26 percent of Meanwhile, the finance ministry on September 29, said the government inpost-tax profit for the welfare of affected people, a move intended to the second half of the current financial year would borrow an additionalbenefit mostly tribals. The development may hurt mining Rs 52,800 crore from the market, more than the budget estimate, sendingcompanies like Coal India, Hindustan Zinc, Tata Steel, Sesa Goa bond yields higher. However, the government is hopeful that thisand JSPL by pushing down their profits and margins. Furthermore, additional borrowing will not affect the government's fiscal deficit targetAnil Dhirubhai Ambani Group's stocks like Reliance of 4.6% of the GDP in 2011-12. Conclusively 4680-4700 could be the keyCommunications, Reliance Capital, R Power and Reliance support zone for the October series. Any closing below this range mayInfrastructure sank deeper into the red terrain and suffered nasty open the flood gates and we might see 4500-4530 in a short span of time.lacerations in the range of 3-13% after reports that the CBI told the On the flip side 5250-5270 may be the resistance zone where we might seeSupreme Court that three Reliance Group executives, Gautam some sort of consolidation.Doshi, Surendra Pipara and Hari Nair, may turn approvers in the

FROM THE DESK OF RESEARCHFROM THE DESK OF RESEARCH

Monthly Update From Mansukh (For Private Circulation Only) Issue : October 20

Visitor sms ' ' to 56767

www.moneysukh.commansukh make more, for sure.

C o n t e n t s

MarketReview

1Global

Snapshot

2Economy

Update

3Technical

Picks

4Fundamental

Picks

5Market

Tutorials

6Commodity

Section

7AuxiliarySection

8

Volume* & Volatility Index (Nifty - Sep 2011)

1 0 3

. 0

1 0 3

. 3

1 0 4

. 2

1 2 0

. 4

1 0 7

. 7

9 7

. 8

1 0 2

. 4

1 3 1

. 2

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. 6

0

500

1000

1500

2000

2500

20-Sep 21-Sep 22-Sep 23-Sep 26-Sep 27-Sep 28-Sep 29-Sep 30-Sep*NSE

0

10

20

30

40Cash (Rs bn) F&O (Rs bn) Volatility %

Call Put Analysis (Nifty Oct 2011 series)

0 13 1

4

1 5 1

8

3 6

3 0

5 0

3 0

2 4 2

6

4

0 4 3

3 3

5 7

5 4

3 7

3 0

1 0

7 3 3

0

10

20

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4300 4400 4500 4600 4700 4800 4900 5000 5100 5200 5300 5400

OI in LakhsCall Put

D E A R A L L , W E W I SH U A N D Y OU R F A M I L Y A V E R Y H A P PY D I W A L I . MA Y GOD F U L F I L L A L L Y OU R W I SH E S I N W E A L T H , H E A L T H & H A P PI N E SS…

D E A R A L L , W E W I S H U A N D Y OU R F A M I L Y A V E R Y H A P PY D I W A L I . M A Y GOD F U L F I L L A L L Y OU R W I SH E S I N W E A L T H , H E A L T H & H A P PI N E SS…

8/4/2019 Make More - Oct 2011


The Federal Reserve has broadcast its most recent endeavor to push the

economy back to existence. In the extensively predictable move, named

Operation Twist, it is kind of undertaking, in excess of the next nine months, to

get rid of some $400 billion in short-term government bonds it possess and

make use of these proceeds to acquire government bonds that grown-up in 6-30

years. The Fed strong-willed to show aggression on both frontages by engaging

in an exchange operation by purchasing long-term bonds at the same time as

simultaneously selling short-term bills. This operation was projected to

wrestle the depression by lowering long-term interest rates to arouse domestic

investment, and the BOP discrepancy by lifting short-term interest rates to

create a center of attention for foreign investment to the United States in the

course of a relatively high rate of return. This exchange policy became

acknowledged as Operation Twist for the reason that the Fed attempted to

synthetically flatten or twist the characteristically upward-sloping yield arc.

US MARKETS:

quashing hopes of a possible European Central Bank interest-rate cut.

Also, German Economy Minister Philipp Roesler stated GermanAs of know, many policymakers and analysts should have

lawmakers were unlikely to back any further increase in the Europeandocumented that "long-term interest rates cannot be considerably

Financial Stability Facility beyond the measures approved.condensed as a result of money market publicity stunt. In such scenario

It is quite obvious to have a doubt e, that the this time Fed would not be Ahead of the opening bell, the Commerce Department stated that

more successful today than it was 30 years ago in attempting to twist personal income in August fell a seasonally adjusted 0.1%, the first

the yield curve. Undeniably now that interest rate ceilings on deposit decline since October 2009. Though, Consumer spending increased a

accounts are no longer in effect, there are no non-natural forces holding seasonally adjusted 0.2%. September's reading of consumer sentiment

these rates at any fastidious level. What's more, if point of view has a rose to 59.4, recovering from a nearly three-year low of 55.7 in August,

role in determining long term interest rates, then the interest rate according to a Thomson Reuters/University of Michigan gauge.

spread comprises an inflation constituent that will not fade away Meanwhile, manufacturing activity in the Chicago region, expanded at

simply because fewer long-term bonds are circulating in the market. As a more rapid pace, rising to 60.4 in September from 56.5 in August.

long as the swapping operation leaves inflationary expectations Meanwhile Crude prices got pummeled by around three and half aunchanged, no lasting narrowing of the interest rates spread can occur. percent on Thursday ( as investors continued to square off

hefty positions from the commodity amid heightened worries over itsThe US markets plunged on 29 Sep 2011, as selling

demand prospects at time when top consumers like China and the USaccelerated in the final hour of trading and that led the worst quarterly

are facing growth concerns. In addition, the ongoing sovereign debtloss for the Standard & Poor's 500 Index since the end of 2008, as the

trouble in Europe and a strengthening US dollar too played a spoilsportsovereign debt crisis in Europe and fears of a global slowdown

and even led the oil prices to the worst quarterly performance since theovershadowed improving economic condition in the US. Euro-zone

fourth quarter of 2008.inflation accelerated to a 3% annual pace in September, effectively

29 Sep 2011)

2

GLOBAL SNAPSHOT make more, for sure.

OPERATION TWIST- NOT MUCH EXPECTATIONS THOUGH MORE CONVINCING

Source: reutersindia.com

“W e live by t he Golden Rule. Those who hav e the gold make the rules.”

U.S. Pending Home Sales U.S. Q2 GDP Revised Up to 1.3%

8/4/2019 Make More - Oct 2011


3

ECONOMY UPDATEmake more, for sure.

BOND MARKETS

In order to lift the market sentiments, government is considering a cut in theSecurities Transaction Tax (STT), along with this, the Ministry of Finance isalso mulling a rationalized and uniform stamp duty on securities transactions.This move of the government has been welcomed by the market, which has beenunder pressure because of the global uncertainties. However, therecommendation is still under consideration. The decision of cutting the STTis backed by the rationale that the tax has not generated much revenue. In firstfive months of current financial year, the government generated around Rs2,223 crore from STT, which is almost 10% less than the last financial year.

duties vary from state to state, the effort is to define a uniform rate andpersuade the states to fix it accordingly. Maharashtra has the higheststamp duty collection with 42% of total inflows. It charges at the rate of0.002% on the non-delivery-based and 0.01% on delivery-based.Moreover In order to avoid overlapping of various regulatoryauthorities and to increase the accountability among the regulators, thePrime Minister's Office (PMO) has started working on a new law whichwill monitor and regulate the economic regulators in India. This moveof the PMO is expected to provide some clarity when there are darkclouds looming over the integrity as well as independence of severalregulators across sectors like petroleum, securities markets andairports.

: Bond yields were trading steady with positive biasas risk taking returned to global markets on expectations that Europeanleaders would chalk out a plan to contain the debt crisis. However, yieldswere steady owing to the prevailing caution ahead of the federalborrowing meet on Thursday. Central bank and finance ministry officialsare scheduled to meet on Thursday to decide the schedule of governmentborrowing for the second half of this fiscal year. Most market participantsexpect the government to raise its market borrowing by Rs 30,000-70,000crore, depending on its fiscal performance.

On the global front, US Treasury prices fell on Monday on hopes thatEuropean leaders will commit more cash to bail out debt-laden nationsrevived some appetite for stocks and reduced demand for safe-havenUS government debt. The yields on 10-year benchmark 7.80% - 2021bonds were trading at 8.32% compared with Monday's close of 8.31%.The benchmark five-year interest rate swap was trading at 6.81%compared with 6.80% at the previous close. Meanwhile Interbank callmoney rates were trading steady at 8.25/30% as supply matched theThe STT was introduced in 2004-05, when P Chidambaram wasdemand on the second day of the reporting fortnight. Cash rates wereFinance Minister, the STT is charged on sales/purchase of share,also steady on Tuesday as pressure on supply due to advance taxequity-oriented mutual funds and futures and options in securities.outflows was negated by banks' borrowings through the central bank'sThe recommendation of cutting or removing the STT came up in therepo counter. However, the rates may rise in the coming days as banksmeeting between the finance ministry and Stock Exchanges. It was saidmay scurry to cover up their mandated needs for the reporting cycle.that this tax constituted a major component of the transaction cost. DueThe indicative call rates which closed at 8.25/30% on Monday wereto the high cost and to make trading more attractive, there was need tocontributions made from Andhra Bank, AXIS Bank, Bank of America,reduce or remove the tax, the exchanges are believed to have said in theBank of Baroda, Bank of India, Canara Bank, J P Morgan Chase,meeting.Citibank N.A., Corporation Bank, Credit Agricole Bank, IndusindIn the same time, the ministry of finance is making the draft to presentBank, ICICI Bank, ICICI Securities, IDBI Bank, Jammu and Kashmira proposal before cabinet for rationalizing stamp duty. This alsoBank, Punjab National Bank, RBS, Societe Generale, Standardinvolves removing the rates in some states. As stamp duty is the stateChartered Bank, State Bank of India, Union Bank of India, ING Vysyamatter, the discussions are also going on with the states. The stampBank, BNP Paribas, HDFC Bank, P&S Bank.

GOVT PLANNED TO CUT IN SECURITY TRANSACTION TAX TO LIFT SENTIMENTS

“Plan for the unplanned and y ou'll level out t he ups and dow ns of y our financial roller coaster.”

India Aug Inflation up 9.78% YoY India Raises Repo Rates by 25bps

Source: reutersindia.com

8/4/2019 Make More - Oct 2011


TECHNICAL PICKS

4

make more, for sure.

JAIN IRRIGATION SYSTEMS LTD

QUANTITATIVE ANALYSIS

Jain Irrigation, micro irrigation company has reported hasreported a 57.55% growth in its net profit at Rs 82.35 crore for

the first quarter ended June 30, 2011 against Rs 52.31 crore for

the same quarter last year. Net sales of the company went upby 29.3% to Rs 931.58 crore in the quarter under review

compared to Rs 720.60 crore for the same quarter last year.

Recently Jain Irrigation Systems and Coca-Cola India have jointly launched 'Unnati' - a unique partnership project with

farmers to demonstrate and enable adoption of ultra-high

density plantation practice for mangoes. The project willencourage sustainable, modern agricultural practices and

help double mango yields, thereby increasing the income ofthe farmers. Moreover Jain Irrigation, the world's second

largest manufacturer of drip irrigation systems, has signed a

memorandum of understanding (MoU) with the Rwandan

Government in Africa for developing irrigation solutions forlocal farmers and has already started work on one project.

On technical perspective, after taking significant correction

from the highs of Rs 225, scrip has shown crucial resistance

below Rs 125 level. At current juncture we believe scrip hasthe potential to recover from the current level as its technical

indicators i.e. RSI and MACD also suggest some technical

pull back in near term. Hence we recommended 'Buy' in thisstock.

SCRIP NAME

TRIGGER PRICE

TARGET 1

TARGET 2 STOP LOSS DURATION

JISLJALEQS 140-145 170 175 125 1 Month

PETRONET LNG LTDPetronet LNG is one of the leading players in oil and naturalgas industry space. It has India's first and largest LNGsupply terminal located at Dahej. The company's net profitfor the quarter has zoomed by 130.50% at Rs 256.71 crore ascompared to Rs 111.37 crore for the quarter ended June 30,2010. Its total income has surged by 76.06% to Rs 4623.30crore for the quarter under review from Rs 2625.97 crore forthe corresponding quarter of the previous year. PetronetLNG (PLL) is planning to set up its third LNG terminal inDhamra port in Orissa, which will be incidentally the first oneast coast. The company also plans to start coastal trade ofLNG through daughter vessels beginning 2012-end, once theKochi terminal is operational to large users in Sri Lanka,Andaman and Nicobar Islands and others. RecentlyPetronet LNG has signed a memorandum of understanding(MoU) with HLL Lifecare for long-term supply of LiquefiedNatural Gas (LNG) to power HLL factories. This tie-up ismeant to ensure uninterrupted energy supply for theoperations of HLL Lifecare.

On technical viewpoint, stock has shown downward biasafter showing double top formation around Rs 186. In closeproximity we believe stock has strong support around 145-150 where possibility of bounce back can't be rule out.Moreover it's RSI and other technical indicators alsodisplaying some oversold indicators in near term. Henceinvestors are advised to BUY this stock for a price target ofRs175-180 in near term.

SCRIP NAME

TRIGGER PRICE

TARGET 1

TARGET 2 STOP LOSS DURATION

PETRONETLNG

150-155 175 180 135 1 Month

“Successful people save in prosperous tim es so t hey hav e a financial cushion in t imes of recession.”

8/4/2019 Make More - Oct 2011


Expansion of Branches will help to improve the business growth…Industrial Development Bank of India (IDBI Bank),

Improved CASA and NIM in Q1FY12Financials:

The Rate Hikes practice by RBI is likely to end…

To S trengthen its Portfolio Invested in Commodity Exchange…

established inAs on Q1FY12, IDBI Bank has network of 883 branches, 1459 ATMs and1964 is wholly owned subsidiary of the RBI. IDBI offers personalized598 centers across the countryside, out of total branches of IDBI, 38%banking and financial solutions to its clients in the retail and corporatebranches are located in urban areas, 29% in metro cities, 23% in Semibanking arena through its large network of 883 Branches and 1459Urban areas and around remaining 10% in Rural areas. IDBI Bank hasATMs, spread across length and breadth of India. IDBI also providescorporate customer of more than 3000 and retail customer base of overfinancing to Agri business, Microfinance and SME sector and operating5 million. Further, Bank has planned to increase its branch network upwith its three subsidies namely IDBI Capital Market Services, IDBIto 1050 by the end of FY12 and apart from this, bank has also started theHome Finance, IDBI Intech, IDBI Gilts. It has also forayed into lifeprocess to set up the branches in overseas countries, bank will also openinsurance business in joint collaboration with Fedral Bank and FortisRepresentative office in Shanghai during the same period.Insurance International.

During the last five years (FY06-11) IDBI Bank has shownThe merger of its housing subsidiary with itself has enhanced the InterestCAGR growth of 28% in Interest Earned Income and 24% in PAT,margin of IDBI in Q1FY12. The NIM of the bank has been improved by

owing to efficient interest margins, the Net Interest Income (NII) of46bps to 2.07% in Q1FY12. The deposits of the bank has grown by 12% while

IDBI grew at around 69% during the same period. In FY11, the Interestgrowth in advances after adjusting the merger of housing subsidiary was

Income of the Bank surged by 22% to Rs 18600.82 crore over FY10, NIIaround 12.5% during the same period. Despite the low liquidity and a tight

of bank phenomenally jumped 92% to Rs 4328.89 crore and PAT alsomonetary policy, CASA of IDBI Bank has been improved to 17.29% in

increased by 60% to Rs 1650.32 crore. In Q1FY12 the Interest Income ofQ1FY12 from 13% in Q12FY11. However, the impact of high interest rates

the bank grew by 31%, NII grew by 36% and PAT grew by 34%. Thewould be visible again in Q2FY12 too, but for FY12, IDBI Bank has guided

NIM for the same period stood at 2.07% while PAT margin was 5.95%.the CASA target between the range of 17-18%.

RBI has been hiking rates consecutively since last 17 months, but the

trend is likely to be end in upcoming months because as per the RBI the

inflation is likely to ease in upcoming periods. In fact, the RBI has to

stop the rate hikes because it is also affecting the growth of the economy

for FY12, in first quarter of the financial year 2012 the GDP of India

grew by 7.7% against 9.3% in same quarter of the financial year 2011.

However, Inflation, which was 9.78% in Aug 2011 against 9.22% in July

2011, is still over the comfort level of RBI, the rate hikes by RBI and

consecutively by local banks has already depressed the demand for

loan, and now RBI is likely to hold the key rates for some periods or

may be reduce if inflation comes under control.

After laying the foundation of some of the prominent institutions in

India like NSE, NSDL and SHCIL with other financial institutions, IDBI

Bank has now bought 10% stake in upcoming commodity bourse,

Universal Commodity Exchange (UCX). The main motive behindacquiring equity in UCX is to push agriculture loans through this

venture and other advantage for IDBI is that being a sole bank among

promoters all the transactions of the exchange will be routed through

IDBI Bank. However, this strategic partnership will also enable the

bank to strengthen its overall portfolio by including commodities, as

this market is growing at a rapid pace across global markets.

5

FUNDAMENTAL PICKS

IDBI Bank Ltd Target Price: 151


FUNDAMENTAL PICK

“Diversification is a protection against ignorance. It makes lit tle sense for those w ho know w hat t hey're doing.”

Quarter & Year Ended Q1FY12 Q1FY11 %Chg FY11

Interest Income (Rs Cr) 5628.93 4282.15 31.5 18600.82

NII (Rs Cr) 1152.44 844.35 36.5 6146.8

NIM% (Chg in bps) 2.07 1.61 46 1.76

PAT (Rs Cr) 335.1 250.89 33.6 1650.32

PATM% (Chg in bps) 5.95 5.86 9 8.87

EPS (Rs) 3.4 3.46 1.7 16.8

Dividend (%) 35 0 0 35

Equity (Rs Cr) 984.61 724.89 35.8 984.57

CMP (Rs) 102.75 5.83

52- Week High (Rs) 202.25 0.78

52- Week Low (Rs) 101.25 9.67

Latest Book Value (Rs) 132.09 2.11

Face Value (Rs) 10 0.51

Total No of Shares (Cr) 98.46 87.04

Avg. Monthly Vol. (Lakhs) 43.71 0.68

Market Cap (Rs Cr) 10,117 15.8

Beta (Sensex) 1.26 20.88

Industry P/E 7.74 3.41

Promoters (%) 64.13 3.35

Non-Institutions (%) 15.93 15.6

Data Matrix as on 30.09.2011 Key Financial Ratios (TTM)

ROE (%)

ROA (%)

P/E (x) TTM

P/BV (x) TTM

EV/TTM EBIDTA (x)

EV/TTM Sales (x)

MCap/ TTM Sales( x)

DIIs (%)

Credit/Deposits(%)

CASA (%)

Dividend Yield (%)

Major Shareholders as on 30 June 2011

FIIs (%)

8/4/2019 Make More - Oct 2011


The fear of slowdown in the economy has prolonged the selling pressure in

the markets across the world. Equities as well commodities both the

investment instruments are constantly declining since past many days.

However, do you know the put option in the option trading is the only value

which rises with the fall in the price of stock or underline assets. Actually, in

terms of their function and their price movements, puts are essentially the

opposite of calls. When the price of the underlying equity begins to fall, the

value of a put option on that stock will begin to rise. Often brokers will

provide the ability to write covered calls and to use married puts when you

open your options account. This option strategy will focus on the function of

married puts in a portfolio or as part of a trading strategy, which will

definitely help to minimize the loss & maximize the profits.

What is Married Put?

Break Even Point with an exemplar

When & How to use Married Put Strategy

Conclusion:

Advantages of Married Puts

Married put is an option strategy where investors buy shares and at

same time, he/she makes long positions in put of the same stock with

the same quantity. This hedging strategy or option strategy is known

guaranteed selling price, and control over when he chooses to sell hisas married put strategy. Potential gains or losses from a married put

stock.strategy are created from the net effect of a long position in both the

put and its underlying stock. Married Puts is an option trading

hedging strategy used in conjunction with stocks in order to produce

a convex position with unlimited profit potential but limited The Break Even Point of Married Put option will be the sum total ofmaximum loss. initial cost price of stocks and cost of put options you paid. To use a

married put option it would be required to form the combination of

two different purchases: one of a stock position and one of a put

option. For a example, Let's say you choose to buy 100 shares of XYZMarried put options is typically used with the viewpoint of availing

for Rs 20 per share and one XYZ September Rs 17.50 put for Rs 0.50benefits of stock ownership (dividends, voting rights, etc.) along (100 shares x Rs 0.50 = Rs 50). With this combination, you havewith the concern of uncertain, near-term, downside market risks.

purchased a stock position with a cost of Rs 20/share but have alsoPurchasing puts with the purchase of shares of the underlying stock

bought a form of insurance to protect yourself in case the stockis a directional and bullish strategy. The primary motivation of this

declines below Rs 17.50 before the expiration. You should rememberinvestor is to protect his shares of the underlying security from a

that for a put to be considered "married," the put and the stock mustdecrease in market price therefore he will generally purchase a

be bought on the same day, and you must instruct your broker thatnumber of put contracts equivalent to the number of shares held.

the stock you have just purchased will be delivered if the put isMarried Puts is a simple option trading strategy where you simply

exercised.buy to open one contract of at the money put options for every 100

shares that you buy.

Married puts are one of the few ways that a new

investor can protect the downside of an investment. This protectionMarried Put allows you to hold on to your stocks while insuring comes at a cost, and it is important to use this strategy only in certainagainst any losses. While the married put investor retains all benefits situations. If you think that a particular stock will go up but you are

of stock ownership, he has "insured" his shares against an wary of a possible disaster, then the married-put strategy could beunacceptable decrease in value during the lifetime of the put, and has quite useful. Married puts can provide a great means of limiting youra limited, predefined, downside market risk. The premium paid for losses and helping you learn the usefulness of puts in a portfolio. Asthe put option is equivalent to the premium paid for an insurance in any options trade, always make sure that you consider the worst-policy. No matter how much the underlying stock decreases in value case scenario and be prepare for any kind of uncertain actions in theduring the option's lifetime, the put contract has conveyed to him a markets.

MARKET TUTORIALS

6


OPTIONS STRATEGY – MARRIED PUT

“Too many of us are spending money w e haven't earned to buy things w e don't need to impress people we don't lik e.”

8/4/2019 Make More - Oct 2011


We should agree that Greece should have defaulted some time ago.

Despite all the current efforts, Greece will default and that contagionwill result in a global, banking crisis. Even if we're wrong, the

mountains of money that will be created and poured into the debt hole

will benefit the gold and silver prices. The Greek debt crisis is about

stemming the spread of bank runs, the breakdown of the other PIIGS

countries debt situation, and potentially the fragmentation of the

Eurozone. We're on the brink.

In the last week, we have seen global market confidence buckle in the

face of slowing growth and what may already be a recession. This is not

the time that poorer nations can use falling cash flow to repay

mountains of debt. Talk of a 50% haircut on Greek debt should be lifted

to as high as 60% to 70% for the Greeks to be able to manage its

remaining debt in light of future, Greek cash flows.

We may be tempted to see the debt crises as a short-term problem, but

as the world's leaders agree, they're scaring the world and threatening

global financial stability. So this isn't a case of the passing flu; it

describes a congenital weakness that needs a structural solution. pullback from $1,200 to $1,000, we've seen gold rise to $1,910 and silverNowhere can we see evidence of structural reforms likely to shore up to mid-$40 area, a tremendous gain since then. What's there to preventconfidence and repair the global financial system. The system is flawed a similar shape to the precious metal markets going forward?and most expect such crises to persist for the foreseeable future.

Take a look at the function of gold and silver. Gold, in particular, is anInvestors were shocked when gold dropped from $1,850 to below international asset and international cash. It can be used when all else$1,600 in an almost straight line. When they saw silver drop from $40 to fails. We saw that in the recent falls. Investors could liquidate holdings$28 they were even more shocked. After all, since 2005 gold has come quickly and take good profits to cover losses, loans, and margin calls infrom $300+ and silver from $6+, so a $250 drop and a $12 drop seemed other markets. Once there's a moderate stabilizing of markets, thatto be huge. Since then we have seen the silver price recover $4 in one lesson is remembered. Investment house strategists factor that intoday and the gold price $60 in a day, with more recovery to come. In their policy decisions, realizing that in bad times, future profits lie inpercentage terms, when compared to other markets, we see similar falls precious metals.there and in similar percentages, but not the same vigor in recovery.

In the emerging world, the fall in precious metal prices is seen asThe big picture confirms that falls, in most markets, were investors

speculators getting out of the market and giving them an opportunityraising liquidity to lower leverage and protect against the falls, just as

to buy at prices they feel will allow for certain rises. Their faith in goldwe saw in 2008. This is something market observers cannot see ahead ofand silver remains completely unshaken by the falls, which they see as

time. They accompany major shifts in investor perceptions about thepart of the ongoing suspicions about the developed world banking

structure of global financial markets.system and markets speculation. To them the value of gold and silver

Just as we saw in 2009 and onwards, the loss of confidence in global remains untouched and certain.financial markets doesn't recover. In the gold market, since the

Falls are seen as an opportunity tobuy cheaply into the precious metals.

7

GOLD AND SILVER: KEEP ON BUYING AT EVERY DIP

“W e simply att empt t o be fearful w hen others are greedy, and t o be greedy only w hen others are fearful.”

8/4/2019 Make More - Oct 2011


AUXILIARY SECTION make more, for sure.

ALERT FOR CLIENTS SERVICE FOR MANSUKH SECURITIES

IntroductionMansukh Securities has brought Alert for Clients Service for its customers to remain informed and connected withthe stock market while on move.

Jaamoon Alc Features:1. Conditional Alerts - This feature allows users to set alerts based on price trends.

2. Periodic Alerts - This feature allows users to set time-based alerts.3. Market Open and Market Close Alerts - This feature allows users to set alerts based on Market Open and

Market Close conditions.

Steps To Register And Use Alc Platforma. Click http://www.moneysukh.com.

b. Click

c. Click on New user click here and register yourself by entering your mobile number, first name and lastname.

d. SMS having your username and system generated password will be sent to your registered mobilenumber.

e. Using the login details you can now enter username and password and click Signin.f. Once you login into the application for the first time, you will be asked to change your password. It is

recommended to change the password although you may ignore the warning by clicking Ignore.

g. You can then click “Create alert” link to create your own alerts

h. You can also view the alerts you have created using “View alerts” link

make more - oct 2011

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