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Sunday, October 31, 2010

[T.S.R:16171] John Paulson Bets Heavily On Gold, Shorts The USD


Gold is the most controversial and misunderstood asset in the financial markets. Volatility and two decades of relative financial calm have hidden gold's potential value from investors, especially during periods of uncertainty and growing distrust of authorities to stabilize global markets.

Now that gold has achieved nine straight years of gains amid declines in the market valuations of other more popular and understood investment classes such as stocks and real estate, a growing number of investors are taking another look at the virtues of the yellow metal.

The world's largest investors, hedge fund managers, lead the community of money managers taking a shining to the world's longest-lasting asset known for its durable store of value.

"The outlook for gold is very, very strong," Evy Hambro, co-chief investment officer of BlackRock's natural resources equity team, said to Reuters.

BlackRock's Hambro clears up the misconception that gold is too volatile for the conservative investor, comparing it to the value of the money in your wallet against other money in the wallets of people overseas.

"Gold is certainly nowhere near as volatile as the moves we've seen in currencies," Hambro added. "Look at the euro!" As of overseas trading in Europe Monday morning, gold trades at US$1,359 per Troy ounce, while the euro tests the USD at  1.40. 

Contrastingly, it now takes approximately 22% more dollars to buy a Troy ounce of gold from its 2010 opening price of US$1,117, according to gold dealer Kitco.com.

John Paulson, the prominent and world's largest private hedge fund manager who made $3 billion shorting debt securities during the financial meltdown, is now making a similarly large bet on the fate of the U.S. dollar.

Paulson expects the massive stimulus injected into the financial system from central bankers globally will translate into higher consumer prices down the road as politicians balk at any plan to reign in money supply and threaten any hope of a sustained economic recovery.

"Therefore, we are concerned about high rates of inflation in the future. As an investor I became very concerned about having my assets denominated in U.S. dollars," Paulson said at a luncheon at the Japan Society.

"So I looked for another currency in which to denominate my assets in. I feel that gold is the best currency." At the close of the first quarter of 2010, Paulson reported his largest position is 31.5 million shares of SPDR Gold Trust (GLD) valued at approximately US$3.8 billion.


Safe Harbor Statement:

Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.
 
Nothing in this article is, or should be construed as, investment advice.
 
 
 

 
 


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[T.S.R:0] Omnitech update




09327744250
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[T.S.R:16170] Reliance could push Bombay much higher



FYI


Safe Harbor Statement:

Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.
 
Nothing in this article is, or should be construed as, investment advice.
 
 
 

 
 


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[T.S.R:16169] Nathan Lewis: Gold Has Never Been, Never Will Be In A Bubble

Most serious gold investors follow a basic principle: that gold is stable in value. Changes in the "gold price" represent changes in the currency being compared to gold, while gold itself is essentially inert.

This is why gold was used as a monetary foundation for literally thousands of years. You want money to be stable in value. The simplest way to accomplish this was to link it to gold. Today, we summarize this quality by saying that "gold is money."

From this we can see immediately, that if gold doesn't change in value – at least not very much – then it can never be in a "bubble." There may be a time when many people are desperate to trade their paper money for gold, but that is because their paper money is collapsing in value. It has nothing to do with gold.

Let's take a look at some of the great gold bull markets of the last hundred years:

  • From 1920 to 1923, the price of gold in German marks rose from 160/oz. to 48 trillion/oz.

 

  • From 1945 to 1950, the price of gold in Japanese yen rose from 140/oz. to 12,600/oz.

 

  • From 1948 to 1967, the price of gold in Brazilian cruzeiros went from 648/oz. to 94,500/oz.

 

  • From 1970 to 1980, the price of gold in US dollars went from 35/oz. to 850/oz.

 

  • From 1982 to 1990, the price of gold in Mexican pesos went from 8,000/oz. to 1,025,000/oz.

 

  • From 1989 to 2000, the price of gold in Russian rubles went from 1,600/oz. to 8,120,000/oz.

Each of these situations was an episode of paper currency depreciation. Today is no different. The rising dollar/euro/yen gold price is simply a reflection of the Keynesian "easy money" policies popular around the world today.

We can also see that, if gold remains stable in value, then the supply/demand considerations that affect industrial commodities do not affect gold, which is a monetary commodity. This is why gold is used as money. If its value was affected by industrial supply/demand factors, we would not be able to use it as money.

Thus, "jewelry demand" or "peak gold," or any other such factor, has little meaningful effect on gold's value. Day-to-day money flows will affect the price at which currencies trade vs. gold, but this ultimately affects the currency in question, not gold.

None of these historical "gold bull markets" resulted from jewelry demand or mining supply.

Any attempt to attach a valuation to gold is mostly a waste of time. Concepts like the "inflation-adjusted gold price" or the "gold/oil ratio," or a ratio of outstanding debt or currency to a quantity of gold bullion, are a distraction. An item that doesn't change value is never cheap or dear. That's what "gold is money" means.

The "price of gold" may reach five thousand, ten thousand, a hundred thousand, a million, or a billion dollars per ounce. The gold bubble-callers will be frothing at the mouth, until they finally have the realization that there was never a bubble in gold, but only a crash in paper money.

Gold is money. Always has been. Probably always will be.

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[T.S.R:16168] BLKashyap-Top Diwali Pick (SMC Global)


SMC Global
BLKashyap-Top Investment Idea For Diwali 2010-Upside 40-50 per cent

B.L. Kashyap and Sons (BKL) is a construction company based at New Delhi. The company undertakes industrial, commercial, residential, hospitality and infrastructure construction projects for public and private customers.

It's service portfolio extends across the construction of factories and manufacturing facilities, information technology (IT) campuses, commercial and residential complexes, malls and hotels.

During the fiscal year 2010, the company`s infrastructure segment had bagged a prestigious project worth Rs 500 crore from the Delhi Metro Rail Corporation. It's subsidiaries include Soul Space Projects, BLK Lifestyle, Security Information Systems (India) and BLK Infrastructure.

Investment Rationale

BLK has a strong order book of Rs 40 billion as on September 2010 spread across various industries, which is almost four times its FY10 sales. The order life is two to three years thus giving revenue visibility of the company in the near term. During the fiscal 2011 it has added about 20-25 billion of fresh orders.

The company has strengthened its foothold in the Government sector projects, being lowest bidder for two prestigious projects from M/s All India Institute of Medical Science for approximately 5 billion plus in the month of July 2010, and is hopeful to get many more orders in this segment in current financial year.

BLK posted a robust 40% increase in revenue for the quarter ended June, 2010, compared to a modest 2% rise in the three months ended March. This was led by execution progress on its ongoing projects and monetization from realty projects. The firm also reported 30% increase in the net profits.

Retail project of company`s 100% subsidiary company SoulSpace Projects is on track. The subsidiary is putting up close to 23 mn sq feet of commercial and residential projects spread in Chandigarh, Mohali, Bikaner, Pune, Amritsar and Bangalore.

The first project in Bangalore is likely to get opened in December 2010 while Amritsar goes commercial by March 2011. BLK has already monetized 140- 150 million and expect additional 1,000- 1,500 million from the whole project.

Safe Harbor Statement:

Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.
 
Nothing in this article is, or should be construed as, investment advice.
 
 
 

 
 


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Friday, October 29, 2010

[T.S.R:16167] Weekly Forex Currency Review





  ADVFN III Weekly FOREX Currency REVIEW 
Global Forex News from ADVFN Supplied by advfn.com
    Friday 29 Oct 2010 11:55:35  
 



The Week Ahead

Central bank interest rate decisions will be a key focus in the short-term with five banks due to make announcements over the following week. The stance adopted by the monetary authorities will have a very important influence on currency markets over the remainder of the fourth quarter with a particular focus on the US Federal Reserve. Markets will also be on high alert for the possibility of co-ordinated policy moves.              

Key events for the forthcoming week

Date

Time (GMT)

Data release/event

Wednesday November 3rd

19.15

US FOMC meeting

Thursday November 4th

12.00

Bank of England interest rate decision

Thursday November 4th

12.45

ECB interest rate decision

Friday November 5th

14.30

US employment repor

Dollar:

In the short-term, markets will continue to focus strongly on Federal Reserve policies. There is still an important degree of uncertainty, but it looks likely that there will be further bond purchases over the next few months. The implications will tend to be negative for the dollar, especially given fears over the medium-term vulnerabilities. There will also be expectations that the US will be content to see a weaker US dollar. The US currency could gain some support on optimism that growth conditions will improve. Nevertheless, the dollar will find it very difficult to gain strongly unless fears over the European economies intensify.  


The dollar advanced for the week as a whole, but it was unable to sustain its best levels as underlying confidence remained extremely fragile. The Euro found support on dips towards 1.37 against the US currency.

As far as the US economic data is concerned, jobless claims to 434,000 in the latest week from a revised 455,000 previously which should provide some degree of relief as the data over the past few weeks as a whole has shown a clear improvement.

The headline durable goods data was stronger than expected with a 3.3% gain for September, but the underlying figure excluding erratic transport orders was weaker than expected with a 0.8% monthly decline and there was a generally weak tone.

US existing home sales rose to an annual rate of 4.53mn from a revised 4.12mn the previous month which provided some degree of relief over potential housing-market trends, although the impact was measured given the recent distortions caused by tax changes and proposals to curb foreclosures. New home sales rose to an annual rate of 307,000 from a revised 288,000.

Federal Reserve policy intentions remained an extremely important focus over the week. There was a further debate as to whether there will be a gradualist approach or a more aggressive 'shock' programme by the central bank. Sentiment swung towards a more limited policy which provided dollar support, especially as there was a rise in US Treasury yields to the highest level for 5 weeks.

Later in the week, there was fresh speculation that the FOMC could adopt a more aggressive stance on bond buying with a multi-month programme above US$500bn. This reversal of speculation lowered US Treasury yields and also cut demand for the dollar, but uncertainty remained a key feature ahead of next Wednesday's meeting.


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Euro

The German economy still appears to be performing well which will help underpin the Euro-zone growth figures as a whole. There will also be some speculation that the ECB will look towards a tighter policy relatively quickly. There will still be a high degree of concern over the weaker peripheral economies and there will also be fresh doubts over the ability to meet budget targets, especially if tax revenue is depressed. In this context, structural fears surrounding the Euro-zone could return very quickly which would put the Euro under renewed pressure  

The Euro was not the centre of attention for much of the week, although there were still potentially important developments from a medium-term perspective.

The industrial data remained strong, but consumer trends were less encouraging with German retail sales falling sharply for September.

The Greek Finance Ministry stated that revenue growth had been weaker than expected during 2010 which will make budget deficit compliance even more difficult while there were also reports that Portugal's 2011 budget negotiations had broken down. The Euro will remain vulnerable if there is any further widening of internal yield spreads.

The latest ECB survey recorded a tightening in lending standards during the fourth quarter as banks maintained an extremely cautious stance. The lack of credit availability will make it more difficult for the ECB to withdraw extraordinary liquidity and will also maintain market fears over the health of the banking system. There will also be fresh concerns over the structural vulnerabilities.

Yen:

The Bank of Japan will maintain an expansionary monetary policy with the possibility of additional quantitative easing. There will still be a lack of confidence in the global growth outlook which will stem selling pressure on the yen and there will also be longer-term fears over currency debasement elsewhere which will maintain caution over capital outflows from Japan. There will be pressure for the Bank of Japan to intervene if the dollar weakens to record lows and volatility is liable to increase again.

The yen dipped sharply in the middle of the week, but then secured an important reversal with the dollar weakening back towards record lows with a retreat to 80.50.

Finance official Igarashi stated that yen intervention would be most effective when it came as a surprise while Finance Minister Noda stated that the Monday FX moves appeared one-sided.

The Bank of Japan left interest rates in the 0.0-0.1% range following the latest policy meeting and announced no new measures. The next meeting has, however, been brought forward to next week which suggests that there is the possibility of co-ordinated action following the FOMC meeting

There were increased concerns over the regional growth outlook following weaker than expected Korean industrial data and the Japanese data was also significantly weaker than expected with a 1.9% decline for October, the fourth consecutive decline.


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Sterling

The latest GDP figure has eased immediate fears over the economy and there will be reduced expectations of any further quantitative easing at the forthcoming Bank of England meeting. The economy will, however, remain vulnerable and sentiment could reverse very quickly, especially if there are further negative developments surrounding the housing sector. Sterling will secure near-term relief from the positive credit ratings news and will also gain longer-term protection from a lack of confidence in the other major economies.

Sterling had a slightly vulnerable tone early in the week, but resisted selling pressure and then advanced strongly with a peak above 1.5950 against the dollar while there was a strong recovery to near 0.87 against the Euro from lows beyond 0.89.
.
There was some speculation over a stronger than expected GDP figure. In the event, the data was even stronger than the rumours with a 0.8% third-quarter expansion compared with expectations of a 0.4% gain.

The data eased immediate concerns over the growth trajectory and lessened speculation over an immediate Bank of England move to boost the quantitative easing programme. Confidence is liable to be fragile and there are still very important risks over the next few months as fiscal tightening saps confidence. Business confidence surveys will be watched very closely next week and a sharp slowdown would undermine sentiment.

Sterling also gained support from a fresh report by ratings agency Standard & Poor's. The UK AAA rating was affirmed and the negative outlook was also revised to stable following the government's committed stance on spending restraint.

The UK economic data offered some support with the latest CBI retail sales survey still robust at 36 for October while there was a slight improvement in consumer confidence for the month

With major doubts over the US and Euro-zone outlooks, Sterling could continue to gain some near-term support as an alternative reserve currency, especially if ratings agencies maintain a favourable outlook.

Swiss franc:

There will be some concerns over Swiss economic trends and there will also be speculation that the National Bank is quietly encouraging the Swiss currency to weaken. The franc will, however, continue to gain defensive support from expectations that other major central banks will pursue further quantitative easing and also directly or indirectly promote a weaker currency to help boost trade conditions. In this context, the franc should still be able to resist heavy selling given the vulnerabilities within the Euro-zone and global economy.

The dollar found support on dips towards the 0.96 level against the franc and rallied strongly to a high above 0.99 before hitting fresh selling. The franc was generally on the defensive against the crosses, especially against Sterling.

There was a slowdown in the UBS consumption index which increased speculation that the economy was slowing sharply.

National Bank Chairman Hildebrand stated that monetary policy was appropriate despite risks that very low interest rates will fuel asset-price bubbles, especially in the housing sector. There will be some pressure on the central bank to adopt a more restrictive policy during 2011


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Australian dollar

The Australian currency fell sharply following the latest consumer inflation data with a headline reading of 0.7% compared with expectations of 0.8% while the core rate dipped to a five-year low. There was a significant adjustment in market interest rate expectations following the data with the chances of a November increase cut to below 30% from near 50%.

There was an improvement in business confidence according to the latest survey while private-sector credit growth remained weak. The currency did find support below the 0.97 level, but rally attempts were stifled by a deterioration in risk appetite.

Markets will want to maintain a bullish tone in the near term, although a further period of correction is likely if interest rates are not increased.

Canadian dollar:

The Canadian dollar found support close to 1.0350 against the dollar during the week and strengthened to just below 1.02, but it was unable to make strong headway and ranges were generally narrower.

There was a slightly more cautious attitude towards risk which curbed demand for the Canadian dollar as markets continued to fret over G7 growth prospects. There was little in the way of domestic economic data releases with wider US currency trends tending to be dominant

The fundamentals suggest that the Canadian dollar should be able to resist heavy selling pressure while it will remain difficult to sustain advances beyond parity.

Indian rupee:

The rupee was unable to extend gains in the latest week and dipped to a two-week low around 44.65 against the US dollar.  The currency was hampered initially by a generally firmer US currency and the trend in risk appetite was also less favourable for the currency late in the week as Asian markets dipped.

Short-term capital flows were also less supportive for the rupee as IPO-related inflows faded and there was some return of funds from over-subscribed issues, a trend which will continue over the next few weeks.

The rupee should remain broadly firm given, although it may be difficult to resume gains in the near term, especially with adverse capital-account trends. 


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Hong Kong dollar

The Hong Kong dollar secured a firmer tone over the week and there was a further test of resistance beyond the 7.7550 level against the US dollar even though the US currency had a slightly firmer tone

There was further speculation of longer-term capital inflows given the possibility of a currency revaluation if the yuan strengthens sharply.

The Hong Kong dollar should maintain a generally firm tone in the short-term, especially with speculation over a medium-term breaking of the peg.

Chinese yuan:

The yuan retained a weaker tone during the week and dipped to beyond 6.69 which was its lowest level in October. The Chinese currency was undermined by a firmer US currency at times, although there was also strong evidence that the central bank was pushing the currency weaker and encouraging two-way flows.

There was further international political pressure for a stronger yuan and there were concerns that tensions would rise further following the US congressional elections

There was also caution ahead of the forthcoming PMI data with markets unsure over the growth trends and whether the central bank would need to adopt further tightening

There will be strong expectations of further yuan appreciation in the medium term due to underlying capital inflows. The central bank will continue to resist any rapid pace of currency appreciation.





 
 




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[T.S.R:16167] Op Lease vs. Finance Lease: SC Explains Law



The following important judgement is available for download at itatonline.org.

Association of Leasing & Financial Service Companies vs. UOI (Supreme Court)


Difference between Operating Lease, Finance Lease & Hire-Purchase explained

 

S. 65(12) & 65(105)(zm) of the Finance Act, 1994 levies service tax on leasing and hire purchase transactions. The constitutional validity of the said provisions was challenged primarily on the ground that as under Article 366(29A) of the Constitution hire-purchase and leasing transactions are deemed to be a 'sale' and liable to sales-tax, only the State Legislature has jurisdiction to impose tax and not Parliament. HELD dismissing the challenge:

 

(i) The circulars and guidelines issued by RBI read with AS-19 "Accounting for Leases" issued by the ICAI show that the equipment leasing and hire-purchase are activities undertaken by NBFCs and banks are regulated as para-banking activities by the RBI. Such activities of leasing & hire-purchase are financing activities and that fall within the meaning of the words "banking and other financial services" for purposes of service tax. The taxable event is rendition of service and it is not a tax on material or sale;


(Click Here To Read More)




Regards,



Editor,


itatonline.org
------------------
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Microsoft Corporation vs. ADIT (ITAT Delhi) Income from supply of 'shrink-wrapped' software assessable as 'royalty'. A tax-treaty can be unilaterally overridden


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[T.S.R:16164] PERFORMANCE OF TODAY'S TRADING CALL@TEAM STOCKRESEARCHERS @ 29.10.10


INTRADAY FUTURES +0/- in Just 1 Lot of Trading.Charges 6600 for 2 months.
TSR NIFTY -36 POINTS IN JUST 1 LOT.Charges 3700 for 2 months
Charges 3700 for 2 months

INTRADAY OPTIONS -3600/- IN JUST 1 LOT.Charges 4200 for 2 months.

Here are the trading calls given by Team Stock researchers to its premium clients today.Its intra/futs/nifty futs /options service.Calls are sent by both sms and yahoo messenger.All are live calls.We dont give premarket calls.
Yahoo messenger id- NIFTYVIEWSCOM
Google talk support id- Contact@niftyviews.com

for payment details OR any further query email to contact@niftyviews.com


1 calls Hits target 0 sl taken and 1 booked at costs
CASH CALLS:

SELL ABB BELOW 860 (NOW 861.8) STOPLOSS 872 TARGET 845-838 RANK3 ()ITS SELL BELOW CALL) - TGT

BUY GTL INFRA 45.3 SL 44.3 TARGET 46.5-47.7 - EXITED AT COST

 
NIFTY CALLS:
BUY NIFTY FUT AT CMP - 6023-24, SL - 6007, TARGET - 6043-6066++, EXITED AT 6007 = - 32

BUY NIFTY FUT AT CMP - 6007, SL - 6005, TARGET - LATER, EXITED AT 6007 = - 4

36 X 20 = - 720/-

TOTAL= -36 POINTS FOR THE DAY




OPTIONS CALLS:
29-10-2010
============================================================================================
BUY NIFTY 6300CE NOV SERIES NEAR 62-64 SL 35 TGT 90+,
SL TAKEN
LOSS:1350/1LOT


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SL TAKEN
LOSS:2250

TOTAL LOSS = -3600/- PER LOT..

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Thursday, October 28, 2010

[T.S.R:16164] WGC Gold Investment Digest Q3 2010



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Gold Investment Digest
28 October 2010     

New issue of Gold Investment Digest and updated Investment Statistics

GOLD INVESTMENT DIGEST Q3 2010

We are pleased to announce the publication of the latest issue of our research quarterly, Gold Investment Digest, offering investment professionals a concise analysis of recent gold market trends. The report is now available from our website.





POSITIVE LONG-TERM GOLD PRICE TREND UNDERPINNED BY APPETITE FOR GOLD'S WEALTH PRESERVATION PROPERTIES

The gold market continued to be supported by concerns over the health of the global economy and its ability to show a sustained recovery, especially in developed nations. These concerns, particularly when coupled with risks surrounding potential extensions to quantitative easing and supportive central bank activity, have sustained investment inflows leading to a robust quarterly gold price performance.

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INVESTMENT STATISTICS

We have also just updated our investment statistics (including exchange rate effects, correlation analysis, comparative historical volatility and the relative performance of gold and a range of other assets), now covering Australia, Belgium, Canada, China, France, Germany, India, Italy, Japan, Netherlands, South Africa, Switzerland, United Kingdom, United States.


We welcome your feedback on our research and statistics. Please email any comments to research@gold.org.

For information about the methodology used to generate statistics, please read our note on methodology. If you wish to reproduce the charts and tables in the statistics section for your own use, please consult us. In all cases, the World Gold Council should be acknowledged ('Source: World Gold Council, www.gold.org') along with any third party data providers.

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Gold Investment Digest Q3 2010
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If you are an institutional investor, we are available to give in-house presentations on the role gold can play as a portfolio diversifier, as well as background information and briefings on gold market fundamentals. To discuss this further, or if you have questions about the statistics, please do not hesitate to contact us at investment@gold.org
This message is provided for information purposes only and should not be construed as a solicitation or offer to buy or sell securities or related financial instruments. E-mail transmission cannot be guaranteed to be secure or error-free. The sender does not accept liability for any errors or omissions in the contents of this message which may arise as a result of e-mail transmission.

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investment@gold.org

Gold
© 2010 World Gold Council. All rights reserved. An Association under Swiss Law






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[T.S.R:16164] 29.10.10 NIFTY MAGIC NUMBERS (PIVOT POINTS / WWW.NIFTYVIEWS.COM)

29.10.10 NIFTY MAGIC NUMBERS (PIVOT POINTS / WWW.NIFTYVIEWS.COM)


Nifty EOD Chart 27 OCT 2010
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[T.S.R:16163] BoB & PNB - Emkay; UBI - IIFL.



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