FOMC Rate Decision and Commodity Trading Tips
MCX Crude Commodity Market Trading has no fresh developments with regards to the commodity from the international arena. Into the US though, consumer confidence seconded to a seven year high in October, hitting the 94.5 mark providing signs that consumers still stay positive about the prospects of the world’s largest economy. As per latest cues from the country, the private sector major API reported its inventory data wherein it said crude stocks fell by 3.2 million barrels, according to data from Bain Energy. As per estimates, the DoE report tonight might show crude supplies rose by 3.65 million barrels though product stocks are seen lower. Gasoline inventories fell 900,000 barrels whereas distillate stocks probably decline 1.4 million barrel making a largely even set of inventory data. Although the expectation suggest that the stocks may increase but by looking at the API number, we now possibly look for changing our stance and likely that stocks might not raise as much it is expected. So, if such data comes in the US then possibly oil may continue to gain today. We suggest buying oil from lower levels. The only risk to the buying trade would be how the USD performs today ahead of the Fed decision. So, our advice would remain to trade cautious with strict stop loss. Global Market View for today, all the Asian equity markets are trading largely on positive note tracking the strong performance US equity markets on the back of improved earnings and a dovish FED. S&P 500 closed at 1985.05 up by 1.19 percent in yesterday’s session as investors were relieved from global growth anxiety after optimistic results. US markets were initially lower after the weak durable goods orders but this was offset by a more than expected rise in the US consumer confidence index to 94.5 from a previous level of 86.0. Economic Data: No major economic data during market hours but all attention would be on the FED announcement that is due in the evening. We expect the FED to end its bond buying program and keep the interest rates unchanged. Coming to commodities, we saw bullion trading in the same confined range; oil rebounded a tad while base metals moved up except zinc while nickel exceptionally rose over 6 percentages. We shall now look at each sector in detail to understand the today’s outlook MCX Natural Gas Commodity market Trading for today has no changes onto the weather related cues however as said, changes in the Inventory expectations and expiry of the Nov contract probably lead to shift of volumes and also fresh positions building which pushed the commodity smartly higher on
Tuesday. The same thing can be seen from the fact that DEC contract gained at a better rate than Jan at NYMEX yesterday. While shorten view stays same, Natural Gas rebound has coincided with the fact that it was trading near oversold phase. Looking at the chart pattern it trade higher for one or two sessions so we recommend buying from lower levels with strict stop loss. Commodity Trading Tips Sell Silver Mcx Dec below 38350 SL 38550 Tgt 37850 Buy Natural gas Nov Mcx above 230 SL 228 Tgt 235