INTELLECTUAL TRADING

What is Sovereign Gold Bond (SGB)? Who is the issuer?            SGBs are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. The Bond is issued by Reserve Bank on behalf of Government of India.           Pursuant to RBI press release ref no: 2015-2016/2857 dated June 08, 2016, the first tranche of Sovereign Gold Bond issued on November 30, 2015 held in dematerialised form will be available for trade on NSE trading platform w.e.f. June 13, 2016. Sovereign Gold Bond will trade in Capital Market Segment. Market timing for trading will be 09:15 am to 3.30 pm & 3:40 pm to 4:00 pm (closing session). For further details refer circular download ref no. :  NSE/CMTR/32540 Know more about Sovereign Gold Bonds Scheme -   SGBs are Government securities denominated in gr...

Nifty weekly performance   (May 23, 2016 – May 27, 2016): Indian stock markets ended the week on a negative note. The BSE Sensex was up by 5.34%, while the NSE Nifty was up by 5.25%. The tug-o-war finally ended in favour of the bulls. They snapped back in style and have thrown the bears out of the ring with a 400-point move. It seems like the index could now trade in a range of 8,000 and 8,200 and consolidate its gains before making an up-move.  Nifty Prediction for Week   (May 30, 2016 – June 03, 2016): Support for the index lies in the zone of 8000 from where the index has broken out from the triple top formation. If the index manages to close below these levels then the index can drift to the levels of 7800 where 200 Daily SMA is lying. Resistance for the index lies in the zone of 8250 to 8300 from where the index has sold off in the month of Oct – 2015. If the index manages to close above these levels then the index can move to the levels of 8600 to 8650 l...

Amid higher market uncertainty, the price of gold is up by 16% year-to-date – in part due to NIRP. History shows that, in periods of low rates gold returns are typically more than double their long-term average. Investors should consider doubling their gold allocations amid negative interest rates,says World Gold Council(WGC). The world has entered a new and unprecedented phase in monetary policy. Central banks in Europe and Japan have now implemented Negative Interest Rate Policies (NIRP). The long term effects of these policies are unknown, but WGC see discouraging side effects: unstable asset price inflation, swelling balance sheets and currency wars to name a few. Amid higher market uncertainty, the price of gold is up by 16% year-to-date – in part due to NIRP. History shows that, in periods of low rates gold returns are typically more than double their long-term average. “Looking forward, government bonds are likely to have limited upside, due to their low-tonegative yields...