Commodity Research Report 07 December 2015 Ways2Capital

Page 1


✍ MCX DAILY LEVELS DAILY

EXPIRY DATE R4

R3

R2

R1

PP

S1

S2

S3

S4

ALUMINIUM

31 DEC 2015

104

103

102

101

100

99

98

97

96

COPPER

29 FEB 2015

319

317

315

313

311

309

307

305

303

CRUDE OIL

18 DEC 2015 2760 2740

2720

2700

2680

2660

2640

2620

2600

GOLD

05 FEB 2015 2588 25830 0

25770

25720

25650

25600

25550 25500

LEAD

31 DEC 2015

117

116

115

114

113

112

111

110

109

NATURAL GAS 28 DEC 2015

149

148

147

146

145

144

143

142

141

62

622

618

614

610

604

600

596

592

35320

35220

35100

35000

34900

34800

34700

106

105

104

103

102

101

100

NICKEL

31 DEC 2015

25450

6 SILVER ZINC

04 MAR 2015 3552 35420 0 31 DEC 2015 108

107

✍ MCX WEEKLY LEVELS WEEKLY

EXPIRY

R4

R3

R2

R1

PP

S1

S2

S3

S4

ALUMINIUM

31 DEC 2015

107

105

103

101

99

97

95

93

91

COPPER

29 FEB 2015

323

320

317

314

311

308

305

302

299

18 DEC 2015 2820

2780

2740

2700

2660

2630 2600

2570

2540

GOLD

05 FEB 2015 26050 25950

25850

25750

25650

25550

25450

25350

25250

LEAD

31 DEC 2015

120

118

116

114

112

110

108

106

104

NATURAL GAS 28 DEC 2015

153

151

149

147

145

143

141

139

137

645

635

625

615

605

595

585

575

35550

35350

35150

35000

34800

34600

34400

108

106

104

102

100

98

96

CRUDE OIL

NICKEL

31 DEC 2015

SILVER

04 MAR 2015 35950 35750

ZINC

31 DEC 2015 112

110

565


WEEKLY MCX CALL SELL ZINC DEC BELOW 102 TGT 100 SL 104

PREVIOUS WEEK CALL SELL GOLD FEB BELOW 25100 TGT 24950 SL 25253- SL TRIGGERED. SELL ZINC DEC BELOW 103.30 TGT 102.30 SL 105.20 - MADE LOW OF 102.60

✍ FOREX DAILY LEVELS DAILY

EXPIRY DATE R4 68

R3

R2

R1

PP

S1

S2

S3

S4

67.60

67.35

37.20

67.05

66.85

66.75

66.45

66.10

102.65

102

101.60

101.35

100.95

100.70

100.05

99.40

USDINR

29 DEC 2015

GBPINR

29 DEC 2015 103. 30

EURINR

29 DEC 2015 75.3 74.55 0

73.75

73.30

73.00

72.55

72.25

71.50

70.74

JPYINR

29 DEC 2015 55.8 55.45 5

55.05

54.80

54.65

54.40

54.25

53.85

53.45

R2

R1

PP

S1

S2

S3

S4

✍ FOREX WEEKLY LEVELS DAILY

EXPIRY DATE R4

R3

USDINR

29 DEC 2015 68.7 68.20 0

67.70

67.20

66.80

66.40

66

65.60

65.20

GBPINR

29 DEC 2015 106. 104.85 80

102.85

102.05

100.95

100.09

98.95

97

95.05

EURINR

29 DEC 2015 80.8 78.00 5

75.15

73.95

72.35

71.15

69.345

66.62

63.75

JPYINR

29 DEC 2015 56.7 55.95 0

55.25

54.90

54.55

54.15

53.80

53.00

52.35

WEEKLY FOREX CALL SELL EURINR DEC BELOW 72.50 TGT 71.50 SL 73.50

PREVIOUS WEEK CALL SELL GBPINR DEC BELOW 100.76 TGT 100.10 SL 101.35 - TGT ACHEIVED


✍ NCDEX DAILY LEVELS DAILY

EXPIRY DATE

R4

R3

R2

R1

PP

S1

S2

S3

S4

SYOREFIDR

20 JAN 2015

656

648

640

637

632

629

624

616

608

SYBEANIDR

20 JAN 2015

3980

3912

3844

3807

3776

3739

3708

3640

3572

RMSEED

20 JAN 2015

5102

5022

4942

4898

4862

4818

4782

4702

4622

JEERAUNJHA

20 JAN 2015

16615 16415

16215

16100

16015 15900 15815 15615

15415

CHANA

20 JAN 2015

5099

5019

4939

4891

4859

4811

4779

4699

4619

CASTORSEED

20 JAN 2015

4113

4055

3997

3968

393

3910

3881

3823

3765

✍ NCDEX WEEKLY LEVELS WEEKLY

EXPIRY DATE

R4

R3

R2

R1

PP

S1

S2

S3

S4

SYOREFIDR

20 JAN 2015

693

671

649

642

627

620

605

583

561

SYBEANIDR

20 JAN 2015

4476

4259

4042

3906

3825

3689

3608

3391

3174

RMSEED

20 JAN 2015

5275

5143

5011

4933

4879

4801

4747

4615

4483

JEERAUNJHA

20 JAN 2015

17771 17211 16651

16318

16091 15758 15531 14971

14411

CHANA

20 JAN 2015

5465

5256

5047

4945

4838

4736

4629

4420

4211

CASTORSEED

20 JAN 2015

4238

4139

4040

3989

3941

3890

38/42

3743

3644

WEEKLY NCDEX CALL SELL TMC JAN BELOW 10050 TGT 9750 SL 10350

PREVIOUS WEEK CALL BUY JEERA JAN ABOVE 16550 TGT 16900 SL 16200 - NOT EXECUTED.


MCX - WEEKLY NEWS LETTERS INTERNATIONAL NEWS � PRECIOUS METAL

1.

Goldman Sachs said on Friday that oil prices will likely remain "lower for even longer," as OPEC members failed to agree on a new production ceiling at the cartel's meeting in Vienna.

2.

U.S. employment increased at a healthy pace in November, in another sign of the economy's resilience, and will most likely be followed by the first Federal Reserve interest rate rise in a decade later this month.

3.

OPEC members failed to agree an oil production ceiling on Friday at a meeting that ended in acrimony, after Iran said it would not consider any production curbs until it restores output scaled back for years under Western sanctions.

4.

U.S. energy firms this week cut oil rigs for the 13th week in the last 14, data showed on Friday, a sign drillers were still waiting for higher prices before returning to the well pad.

Gold Prices of standard gold increased 1.5 per cent in Zaveri Bazaar (in Mumbai) on Saturday following similar moves in global markets. Better-than-expected US job data removed doubts over interest rate hike as scheduled by the United States Federal Reserves (US Fed) later this month resulting in favorable trade sentiment towards bullion. On Saturday, standard gold saw an increase of Rs 390 to close at Rs 25,765 per 10 gram. This resulted in the flight of buyers from the Street. Since a section of traders had urged the government to reduce interest rate from the existing 10 per cent to two per cent, consumers abstained from fresh buying amid expectations of a decline in prices.In London, gold price jumped 2.32 per cent to settle at $1,086.84 (about Rs 72,436) an oz on Friday as compared to $1,062 (about 70,780) an oz the previous day on better-than-expected US job data. Gold for delivery in February 2016 on Comex division of the New York Mercantile Exchange was up to $1,062 an oz as against $1,068 (Rs 71,180) before the release of the data. The US economy added 211,000 jobs last month against 201,000 jobs with an employment rate remained unchanged at five per cent. For October, however, the US government revised employment number upwards to 298,000 from 271,000 announced earlier, making the normalisation of US monetary policy from the month’s FOMC meeting a near certainty. The dollar responded positively and climbed 0.5 per cent to 1.0894 against the euro. Silver also followed the trend and rose 3.12 per cent to close in London at $14.55 (about Rs 969.7) an oz on Friday as against $14.11 (about Rs 940.4) an oz the previous day. In local markets too, silver moved up 1.78 per cent to close at Rs 34,900 a kg on Saturday from the


level of Rs 34,290 a kg on Friday. “Positive employment data paves the way for an imminent interest rate hike by the US Fed on December 16, which would be positive for dollar and negative for gold. Since dollar is set to strengthen, the price decline in gold would hardly benefit Indian consumers being the rupee weakening against the dollar," said an analyst. In local currency, therefore, gold is set to touch Rs 26,000 per 10 grams once again in short term before falling to near recent bottom.

Copper Copper prices fell 0.48% in futures trade today amid a weak trend in the global market and subdued domestic demand. At the Multi Commodity Exchange, copper for delivery in far-month April next year shed Rs 1.50, or 0.48%, to Rs 308.35 per kg in a business turnover of one lot.On similar lines, metal for delivery in February was down by Rs 1.40, or 0.45%, to Rs 308.35 per kg in 330 lots.Analysts attributed the fall in copper futures to weak global cues amid concerns about demand from China and the prospect of an imminent US rate hike and low demand at the domestic spot markets here. Globally, copper for delivery in three months retreated as much as 0.30% to $4,542 per tonne in Shanghai.

Lead Lead prices fell 0.18% to Rs 110.90 per kg in futures trading today due to sluggish demand from battery-makers in the spot market amid a weak global trend. At the Multi Commodity Exchange, lead for delivery in current month eased by 20 paise, or 0.18%, to Rs 110.90 per kg in business turnover of 214 lots.Metal for delivery in January next year month contracts shed 15 paise, or 0.13%, to Rs 111.65 per kg in six lots. Analysts said besides sluggish demand from battery-makers in the spot market, a weak trend in select base metals overseas amid concerns about demand from China and the prospect of an imminent US rate hike mainly kept pressure on lead prices at futures trade.

Nickel Nickel prices softened 0.45% to Rs 592.40 per kg in futures market today as speculators trimmed positions amidst a weak trend overseas and muted demand from alloy makers at the spot market. At Multi Commodity Exchange, nickel for delivery this month traded lower by Rs 2.70, or 0.45%, to Rs 592.40 per kg in a turnover of 320 lots. The metal for delivery in January next year weakened by Rs 1.30, or 0.22%, to Rs 600 per kg in six lots. Analysts said apart from subdued demand from alloy makers in the domestic spot market, weakness in select base metals in global market mainly weighed on nickel futures here.


Energy Natural gas futures ended little changed on Friday on weather forecasts calling for continued warmer-than-normal temperatures that will keep heating demand low through the middle of December. Traders noted the market so far remained unfazed by outlooks calling for easing production. U.S. production in the lower 48 states on Thursday fell below the same day a year ago for the first time since October 2013 as some Marcellus and Utica drillers have shut in production while they wait for prices in the region to rise or for pipelines to enter service to move their fuel to regions where prices are higher. Oil prices fell on Friday after news that the Organization of the Petroleum Exporting Countries was planning to maintain its production near record highs despite depressed prices, as OPEC continued to guard its share of an oversupplied market. The producer group failed to agree on a new production quota, allowing member countries to continue pumping more than 31 million barrels per day of oil, further swelling a global glut that has depressed oil prices for over a year. OPEC's announcement sent ripples through wider markets and dented shares of U.S. energy drillers already suffering from low prices, but losses in oil futures were limited as prices hit support around $40 a barrel. Saudi Arabia has been under pressure from OPEC's poorer members to cut output to bolster prices, which have dropped from over $100 a barrel since June 2014. But Saudi Arabia has been content to keep production up, which has squeezed profits for producers in non-OPEC countries, including the United States. Goldman Sachs analysts, which expect OPEC production to remain slightly above current output at 31.8 million barrels per day in 2016, said robust supply could help keep prices low until the fourth quarter of next year. Bullish wagers on U.S. crude oil from hedge funds and other big speculators fell to the lowest level in more than five years, data from the U.S. Commodity Futures Trading Commission (CFTC) showed.

� NCDEX - WEEKLY NEWS LETTERS Triggered by weather concerns and a rising dollar, prices of agricultural commodities are likely to remain volatile in 2016. With a rise in the first half of the calendar year, before erasing its entire gain by the end of the year. It forecasts agri commodity prices in the world market to rise up to 12 per cent by the end of June 2016. This would reflect a strong dollar's pressure, crude oil price weakness and potential for considerable weather-related production risks. The forecast indicates that excess supply of agri commodities due to record production in past years might not prevent a price rise but the gains could be capped. Agri commodity stocks remain comfortable and are expected to limit price gains to modest levels through 2016. But, weather and foreign exchange rates will remain volatile and are the key variables, presenting both opportunities and challenges for producers and consumers alike. With improved stock levels, we expect price volatility to remain below that of earlier years in


most markets. Most crops saw very good production levels in 2015, despite challenging growth conditions across regions. Despite large stocks in both origin and destination markets, prices are likely to remain susceptible to supply-side shocks. The Food and Agriculture Organization (FAO) of the United Nations has also forecast lower foodgrain output due to change in climatic conditions. Its latest study, issued early this month, shows world cereal production in 2015 around 2,530 million tonnes, about 1.1 per cent below the 2014 record. The 3.9 per cent rise in global food prices, fulled by a particularly powerful El Ni単o (weather condition), should serve as a reminder of the changing landscape of food security. By implementing long-term investments such as irrigation, drought tolerance varieties, diversification of food baskets, and social protection, and discouraging export restrictions that lead to food scarcity and hostility, we can focus on helping the millions in every country who remain hungry and malnourished.

Chana Chana prices were up 0.63 per cent to Rs 5,121 per quintal in futures trade on Wednesday as participants enlarged positions, triggered by tight stocks position at the spot market on restricted supplies from producing belts.At the National Commodity and Derivatives Exchange, chana for delivery in December rose by Rs 32, or 0.63 per cent to Rs 5,121 per quintal with an open interest of 43,440 lots.The January contract edged up by Rs 6, or 0.12 per cent to Rs 4,916 per quintal in 30,320 lots.Rise in chana prices to tight stocks position on restricted supplies from producing regions against upsurge in demand.

Jeera Jeera prices closed higher by 0.03 per cent on Thursday at the National Commodity & Derivatives Exchange Limited (NCDEX) as the investors increased their holdings in the commodity in the midst limited arrivals from growing regions. At the NCDEX, jeera futures for December 2015 contract closed at Rs. 15,825 per quintal, up by 0.03 per cent, after opening at Rs. 15,870 against the previous closing price of Rs. 15,820. It touched the intra-day high of Rs. 15,880. Sentiment improved further as a result of reduced domestic supplies in the physical markets and some export enquiries.

Mustard seed Mustard Seed prices closed lower by 0.82 per cent on Thursday at the National Commodity & Derivatives Exchange Limited (NCDEX) as a result of the profit booking by the traders on account of the weak crushing and export demand of mustard meal. At the NCDEX, Mustard Seed futures for December 2015 contract closed at Rs. 4,725 per quintal, down by 0.82 per cent, after opening at Rs. 4,766 against the previous closing price of Rs. 4,764. It touched the


intra-day low of Rs. 4,714. Sentiment weakened further due to the sluggish export demand as a result of the weak demand for the commodity.

Castorseed Castorseed prices rose by 0.55 per cent on Wednesday at the National Commodity & Derivatives Exchange Limited (NCDEX) as a result of the rise in demand from consuming industries against restricted arrivals in domestic markets which in turn encouraged the investors to enlarge their holdings. At the NCDEX, castor seed futures for December 2015 contract were trading at Rs. 3,868 per quintal tonnes, up by 0.55 per cent, after opening at Rs. 3,852 against the previous closing price of Rs. 3,847. It touched the intra-day high of Rs. 3,874 till the trading.


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