Bonds, Currencies & Commodities
NSE to hold special session for gold ETFs trading on 11th November

Dhanteras is considered an auspicious occasion to buy gold, and a lot of trading interest has been observed on that day, in gold ETF's in the past, NSE said

 
New Delhi: The National Stock Exchange (NSE) will hold a special trading session for gold exchange traded funds on 11th November on the occasion of Dhanteras, reports PTI.
 
The exchange will hold a special trading session for gold Exchange Traded Funds (ETFs) in the equity segment on the 11 November 2012 from 11am to 3.30pm.
 
There will be no trading in any other product in the equity segment, on that day, the exchange said in a statement.
 
Dhanteras is considered an auspicious occasion to buy gold, and a lot of trading interest has been observed on that day, in gold ETF's in the past, it added.
 
Trading in gold ETFs is usually higher on days like Akshaya Tritiya, Dhanteras and during festivals.
 
The gross monthly traded value on gold ETFs on NSE, stood at Rs1,195 crore, taking an average of the first seven months of 2012 (January to July 2012) as against Rs933 crore, in the first seven months of 2011, a rise of about 28%.
 
Assets under management (AUMs) for gold ETF's (on NSE and BSE) stood at Rs11,198 crore as on September 2012 as against Rs8,173 crore at the same time last year, a growth of 37%. Currently, 14 AMCs offer this product on the NSE platform.
 

User

ICICI Bank offers 1% cash-back on home loan EMIs in festive scheme

Under this cash-back offer, 1% of every EMI will be returned to the customer, apart from providing the option of renewable fixed interest rate for the entire tenure free of cost

 
Mumbai: ICICI Bank has launched a limited period offer of 1% cash-back on gross EMI (equated monthly instalment) value as part of a festival scheme, reports PTI.
 
“Under this cash-back offer, 1% of every EMI will be returned to the customer, apart from providing the option of renewable fixed interest rate for the entire tenure free of cost,” the bank said.
 
Customers can choose to avail of this cash back offer either in the form of a credit to their account or in the form of a principal pay-down, it added.
 
The offer will run through the end of December for new customers. The scheme covers renewal/switchover of fixed/ floating rate loans without any processing fee, ICICI Bank executive director and retail business head Rajiv Sabharwal told reporters in a conference call.
 
The cash-back money could be credited to the borrower's account or adjusted against the principal outstanding from the third year including the first two years' dues, and by the end of the fiscal from fourth year onwards, Sabharwal said.
 
When asked whether the bank has priced in the impact of the new offering on the margins, he said, it will be negligible and that the focus is on customer retention by rewarding loyal customers.
 
As credit pick-up remains lukewarm, many banks have launched attractive schemes to woo customers in.
 
Last month, its rival Axis bank launched a scheme wherein a home loan borrower will get 12 EMIs waived if he/she remains with the bank for 15 years or more.
 
Many state-run banks, including SBI, UCO Bank, Vijaya Bank, and Central Bank, have hit the market with combo loan offers, wherein a home loan customer gets a car loan without the process fee, apart from slashing interest rates by up to 0.50% and the processing fee by half.
 
According to ICICI bank, the offer can hugely benefit the borrowers. For instance on a 20-year loan of Rs50 lakh, priced at 10.50%, a customer can gain as much as Rs1,19,806 in cash-back or if it is adjusted against the principal outstanding, the accrued benefit will be Rs3,63,538 at the end of the loan repayment.
 
Mr Sabharwal also said the offer includes an option to remain on fixed or floating rate at no cost.
 
Asked whether this could be considered a dual rate product he said, “to some degree yes, as the pricing varies from year to year, but not in the strict sense of the word as there is no differentiation in the pricing between a fixed customer and a floating rate one.”
 
When asked whether this will be considered by the regulator as a teaser product, he replied in the negative stating there are no differential rates between fixed and floating products as also there is no cut-off period for pre-payment.
 
For the first time, customers have also been given the option to renew their fixed rate loans for tenures of two/three/five years at a zero conversion fee within 30 days of completion of the initial fixed rate tenure.
 
They can also choose to renew this multiple times till the completion of the tenure mad that if a customer decides against renewing, the loan will move to floating rate by default.
 
Under the new scheme, the bank is pricing it as low as 10.25% for a two-year loan, which will increase to 10.50% in the third year and 10.75% in the fourth year.
 
In the September quarter, the bank reported its best ever quarterly numbers with a 30% rise in net profit at Rs1,956 crore. During the period the bank saw its home loan book grow at 12%.
 

User

Weekly Nifty View: Advantage bulls, but can they capitalize?

The current choppiness and low volatility is treacherous for short-term traders but unless and until 5,751 or 5,619 is taken out in close, the traders’ nightmare will continue

 

S&P Nifty close: 5,697.70

Market Trend         

Short Term: Up                     Medium Term: Up                    Long Term: Down
 
After a flat opening the Nifty slipped in the first couple of days of the week to hit the 38.2% retracement level (5586 points) of the rise from 5,215-5,815 points. At these levels short covering coupled with some speculative buying saw the Nifty recover above the 5,638 point mark. This resulted in the shorts being squeezed as the US markets rallied after Hurricane Sandy abated. Volumes were higher as compared to the previous week as the Nifty closed 33 points (+0.59%) in the green. The histogram MACD, which is above the median level, moved lower indicating that even though the bulls are in control they have to push prices higher and simply cannot let them remain choppy for too long.
 
The sectoral Indices which outperformed were CNX Auto (+3.82%), CNX Pharma (+3.51%), CNX Media (+3.48%), CNX IT (+2.29%) and CNX Consumption (+2.11%) while the underperformers were CNX PSE (-1.23%), CNX FMCG (-0.96%) and CNX Infra (-0.17%).
 
 
Some key levels to watch out for this week 
 If the S&P Nifty stays above 5,664 points (pivot) the bulls will breathe easy.
 Support levels in declines are pegged at 5,617 and 5,536 points. 
 Resistance levels on the upside are pegged at 5,745 and 5,792 points.
 
 
Some Observations
1. The Nifty has completed the 61.8% retracement level of the decline from 6,338-4,770 points pegged at 5,740.
2. The 78.6% retracement level of the fall from 6,338-4,770 points is pegged at 5,951 points, which also coincides with the top of the channel (in brown).
3. The Nifty is now moving within a sharp up sloping channel (in blue), support from which is pegged around 5,619 points and resistance is pegged around 5,996 points, this week.
4. We have remained above the previous weekly top of 5,629 points (24 February 2012) which is a sign of strength as long as it stays above it.
5. The weekly chart above also shows a channel (in brown) which intersects the channel (in blue) the resistance lines of which are pegged around 5,996 points. This should be closely watched in the week ahead.
6. The volumes were higher as compared to the previous week which is sign of strength provided the bulls are able to hold on to the gains.
7. Last week the Nifty completed the 38.2% retracement level of the rise from 5,218-5,815 points when it made a low of 5,583 points.
 
Strategy
The choppiness continues thus giving sleepless nights to the overnight as well as day traders as markets open with a gap and then we see dull intraday movement which has been the norm for the past four weeks or so. The current choppiness and low volatility is treacherous for short-term traders but unless and until 5,751 or 5,619 is taken out in close the traders’ nightmare will continue. Around the 5,720 points mark the Nifty has flattened to deceive in the past 3-4 weeks and one hopes that such is not the case this time around. The 6th of November is the 21st trading session from the top of 5,815 (05 October 2012) hence cautioned is advocated as some profit taking could take place. The bulls are better placed at this moment but one has to see whether they capitalize on it or else we slip back into the monotonous choppy market seen in the last four weeks.
 
(Vidur Pendharkar works as a consultant technical analyst and chief strategist at www.trend4casting.com.)
 

User

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)