Commodity research report 21 march 2016 ways2capital

Page 1


✍ MCX DAILY LEVELS DAILY

EXPIRY DATE

R4

R3

R2

R1

PP

S1

S2

S3

S4

ALUMINIUM

31 MAR 2016

112.65

111.30

109.95

109.05

108.60

107.70

107.25

105.90

104.55

COPPER

29 APR 2016

360.50

349.30

338.10

332.60

326.90

321.40

315.70

304.50

293.30

CRUDE OIL

18 MAR 2016

2838

2662

2486

2401

2310

2225

2134

1958

1782

GOLD

05 APR 2016

31127

30553

29979

29658

29405

29084

28831

28257

27683

LEAD

31 MAR 2016

131.45

127.60

123.70

122.30

119.90

118.45

116

112.20

108.30

NATURAL GAS

28 MAR 2016

137.30

132.30

127.30

124.50

122.30

119.50

117.30

112.30

107.30

NICKEL

31 MAR 2016

625.10

613.10

601.10

595.20

589.10

583.20

577.10

565.10

553.10

SILVER

05 MAY 2016

40070

38998

37926

37258

36854

36186

35782

34710

33638

ZINC

31 MAR 2016

129.50

126.70

123.90

122.60

121.10

119.80

118.30

115.50

112.70

✍ MCX WEEKLY LEVELS WEEKLY

EXPIRY

R4

R3

R2

R1

PP

S1

S2

S3

S4

ALUMINIUM

31 MAR 2016

116.90

114

111.10

109.65

108.15

106.75

105.30

102.40

99.50

COPPER

29 APR 2016

369.70

355

340.40

333.70

325.70

319.10

311.10

296.40

281.80

CRUDE OIL

18 MAR 2016

3116

2836

2556

2436

2276

2156

1996

1716

1436

GOLD

05 APR 2016

32763

31628

30493

29915

29358

28780

28223

27088

25953

LEAD

31 MAR 2016

136.95

131.15

125.35

123.10

119.55

117.30

113.75

107.95

102.15

NATURAL GAS

28 MAR 2016

156.30

145.60

134.90

128.30

124.20

117.60

113.50

102.80

92.10

NICKEL

31 MAR 2016

. 684.20

653.50

622.80

606

592.10

575.30

561.40

530.70

500

SILVER

05 MAY 2016

42530

40720

38910

37750

37100

35940

35290

33480

31670

ZINC

31 MAR 2016

136.05

131

125.95

123.60

120.90

118.60

115.80

110.80

105.75

Monday, 21 March 2016


WEEKLY MCX CALL SELL ZINC MAR BELOW 121 TGT 119 SL 123 SELL LEAD MAR BELOW 119 TGT 117 SL 121

PREVIOUS WEEK CALL SELL GOLD APR BELOW 29370 TGT 29080 SL 29653 - TGT ACHIVED

✍ FOREX DAILY LEVELS DAILY

EXPIRY DATE

R4

R3

R2

R1

PP

S1

S2

S3

S4

USDINR

29 MAR 2016

67.30

67.10

66.90

66.75

66.65

66.50

66.45

66.20

66

EURINR

29 MAR 2016

76.80

76.25

75.25

75.40

75.25

74.90

74.70

74.20

73.70

GBPINR

29 MAR 2016

98.90

98.10

97.25

96.70

96.45

95.90

95.60

94.80

93.95

JPYINR

29 MAR 2016

60.95

60.55

60.20

59.95

59.80

59.55

59.45

59.05

58.70

S1

S2

S3

S4

65.90

64.85

63.85

✍ FOREX WEEKLY LEVELS DAILY

EXPIRY DATE

R4

R3

R2

R1

PP

USDINR

29 MAR 2016

70

69

67.95

67.25

66.90

EURINR

29 MAR 2016

78.2 5

77.25

76.20

75.65

75.15

74.60

74.15

73.10

72.10

GBPINR

29 MAR 2016

100. 95

100

98

97.10

96.05

95.15

94.10

92.10

90.15

JPYINR

29 MAR 2016

63.0 5

61.90

60.75

60.20

59.55

59.05

58.40

57.25

56.10

66.25

WEEKLY FOREX CALL SELL EURINR MAR BELOW 74.55 TGT 73.80 SL 75.32 PREVIOUS WEEK CALL BUY JPYINR MAR ABOVE 59.65 TGT 60.30 SL 59 - MADE HIGH OF 60.0650


✍NCDEX DAILY LEVELS DAILY

EXPIRY DATE

R4

SYOREFIDR

20 APR 2016

SYBEANIDR

20 APR 2016

3869

RMSEED

20 APR 20165

JEERAUNJHA

CHANA

R3

R2

R1

633.90

629.50

3837

3805

3791

3773

3759

4039

3990

3941

3913

3892

20 APR 2016

15946

15561

15176

15043

20 APR 2016

4536

4472

4408

R3

R2

647.50 640.70

PP

S1

S2

S3

S4

613.50

606.70

3741

3709

3677

3864

3843

3794

3745

14791

14658

14406

14021

13636

4372

4344

4308

4280

4216

4152

R1

PP

S1

S2

S3

S4

627.10 622.70 620.30

✍NCDEX WEEKLY LEVELS WEEKLY

EXPIRY DATE

R4

SYOREFIDR

20 APR 2016

SYBEANIDR

20 APR 2016

4007

3926

3845

3811

3764

3730

3683

3602

3521

RMSEED

20 APR 2016

4369

4221

4073

3979

3925

3831

3777

3629

3481

JEERAUNJHA

20 APR 2016

16746 16086 15426

15168

14766 14508 14106 13446

12786

CHANA

20 APR 2016

5030

4471

4394

3758

667.70 653.30 638.90 632.10 624.50 617.70 610.10 595.70

4818

4606

4259

WEEKLY NCDEX CALL SELL JEERA APR BELOW 14800 TGT 14500 SL 15100 PREIOUS WEEEK CALL SELL REFSOYA APR BELOW 618 TGT 611 SL 626 - NOT EXECUTED.

4182

3970

581.30


MCX - WEEKLY NEWS LETTERS INTERNATIONAL NEWS ✍ Gold Tepid import of gold in the last two months (Feb-March) of this financial year will help the government save some foreign exchange. The import bill for 2015-16 is now estimated at $31.5 billion, almost nine per cent lower from 2014-15. Import in February was 35-38 tonnes or $1.4 bn. March has begun with marginal import; due to jewelry strike to oppose excise duty, the month might end with gold import of $500-700 million (17-23 tonnes).“The 2015-16 average price is likely to end lower by approximately eight per cent from 2014-15. Most imports were primarily during months when prices were lower," said Sudheesh Nambiath, lead analyst at GFMS, Thomson Reuters. The February import was half of January's, with a steep $30-50 per ounce discount to the cost of import. Gold edged lower on Friday, as the dollar steadied above a five-month low, but the metal remained on track for a weekly gain after the Federal Reserve scaled back rate increase expectations. The U.S. central bank held interest rates steady on Wednesday and indicated it would tighten policy this year, but fresh projections offered by the Fed showed policymakers expect two quarter-point increases by year-end, half the number forecast in December. Expectations the Fed would raise rates steadily this year had faded since the bank's initial hike in December, as concerns about global growth roiled financial markets.

✍Crude oil Crude oil prices settled lower on Friday after the U.S rig count rose for the first time since December, renewing worries of a supply glut after an output freeze proposal helped boost the market to 2016 highs and multiweek gains. US oil futures touched new highs for 2016 on Friday and were set to post gains for a fifth straight week on growing optimism that major producers would strike a deal to freeze output, while a more benign interest rate environment also supported prices. US crude was up 3 cents at $40.23 barrel, after rising to as much as $40.55 higher than the previous peak of $40.36 reached on Thursday. The benchmark had surged 4.5% to close at $40.20 in the prior session. Brent crude's front-month contract was up 2 cents at $41.56 per barrel and earlier rose to $41.71, a new high for the year. It finished up $1.21 at $41.54 a barrel on Thursday. Both contracts have traded down at times throughout the day, suggesting resistance at around $40. "The market is trying to price in the moves by the big producers," said Avtar Sandu, senior commodities manager at Phillip Futures in Singapore. "Otherwise, $40 oil is actually pretty expensive given the oversupply in the market." Oil prices have surged more than 50% from 12-year lows since the Organization of the Petroleum Exporting Countries (OPEC) floated the idea of a production freeze, boosting Brent from about $27 and US crude from around $26. US oil is heading for a fifth week of gains, while Brent is on course for a fourth weekly increase, the longest rising streak in about a year for both benchmarks. Despite the retreat, oil posted multi-week gains, with Brent up for a fourth straight week and U.S. crude a fifth week in a row. Both benchmarks rose about 2 percent this week. Global oversupply in oil had knocked crude prices down from mid-2014 highs above $100 a barrel to 12-year lows earlier this year, bringing Brent to around $27 and U.S. crude to about $26. Over the past two months, prices rallied to above $40 after the Organization of


the Petroleum Exporting Countries (OPEC) floated the idea of a production freeze at January's highs. The combination of declining oil output, smaller crude stockpile builds and surging gasoline consumption in the United States also helped the recovery, although some analysts said the rally had been overdone

✍Natural gas U.S. natural gas futures ended lower on Friday as the market focuses more on the warm weather forecast for much of the rest of March instead of the snowstorm expected to hit the Northeast this weekend on the first day of spring. Natural Gas futures ended flat in the domestic market on Friday as traders weighed near-term forecasts for colder than earlier anticipated temperatures across the US Midwest, which may boost gas-fired heating demand for the fuel, against hefty storage levels with US gas stockpiles declining by just one to 2.478 trillion cubic feet in the week ended March 11, 2016. Total US gas storage levels are around 807 billion cubic feet above the fiveyear average of 1.671 trillion cubic feet and 998 billion cubic feet above levels in the same period a year ago. At the MCX, Natural Gas futures for March 2016 contract closed at Rs 127.3 per mmBtu, unchanged, after opening at Rs 127.9, against the previous closing price of Rs 127.3.

✍Copper Copper slipped from a four-month high on Friday as investors locked in gains after a rally prompted by a more dovish U.S. rate outlook, though stronger oil prices and lower inventories cushioned the fall. Copper futures advanced during evening trade in the domestic market on Friday amidst a pickup in physical demand for the industrial metal in the spot market and on optimism that a recovery in the property market in China, the world’s biggest metals consuming nation, may bolster demand. New Chinese home prices rose in 47 cities in February, up from 38 in January, signaling a recovering property market, while the Yuan strengthened after China’s central bank raised its reference rate by the most since November. At the MCX, Copper futures for April 2016 contract were trading at Rs. 340 per 1 kg, up by 0.41 per cent, after opening at Rs. 339, against the previous closing price of Rs. 338.6. It touched the intra-day high of Rs. 343.85. (At 16:53 PM).

Copper also drew support from declining physical stocks in London Metal Exchange warehouses. Copper in the warehouses stood at 158,275 tonnes, down about 30 percent since late November, though much of the inventory has just moved to warehouses monitored by the Shanghai Futures Exchange. The pullback in copper prices was limited by tentative signs of recovery in China's property sector, which is China's second-biggest copper consumer after the power industry.

✍Lead Lead prices fell by 0.45 per cent on Friday at the domestic markets due to low demand from battery-makers and other consuming industries at the domestic spot market as well as a weak trend at the global market. At the MCX, Lead futures, for the March 2016 contract, is trading at Rs 120.70 per kg, down 0.45 per cent, after opening at Rs 122, against a previous close of Rs 121.25. It touched an intra-day low of Rs 120.45 till the trading. (At 3.33 PM today). However, losses were limited due to the decline in the lead stockpiles at the London Metal Exchange (LME) on account of the strong demand for the commodity. LME lead stocks fell by 1925 metric tonnes to 164325 metric tonnes as on March 18, 2016.


✍Zinc Zinc futures posted modest gains in the domestic market on Friday as investors and speculators booked fresh positions in the industrial metal amid a pickup in physical demand for zinc in the domestic spot market. Optimism that a recovery in the property market in China, the world’s biggest metals consuming nation, may bolster demand, also boosted sentiment. New Chinese home prices rose in 47 cities in February, up from 38 in January, signaling a recovering property market, while the Yuan strengthened after China’s central bank raised its reference rate by the most since November. Further, China Securities Finance Corp. stressed that it will boost lending to brokerages for their margin trading business in measures aimed at boosting the country’s stock market which recently fell prey to a rout and leverage more than halved from last year’s peak. At the MCX, Zinc futures for March 2016 contract closed at Rs 122.45 per kg, up by 0.12 per cent after opening at Rs 122.65, against the previous closing price of Rs 122.3. It touched the intra-day high of Rs 123.3.

✍ NCDEX - WEEKLY NEWS LETTERS ✍Chana During Thursday’s trading session NCDEX Chana April opened positive and traded upside during most parts of the session. However at the end of the day it closed almost at same level. NCDEX Chana April futures ended the day at Rs 4372 per quintal which is 0.02% up against the previous day. In this fiscal year till 1st March country has imported 55.5 lakh tonnes of pulses where as last year during entire year center had imported 45.8 lakh tonnes. Pulses production is estimated at 17.33 million tonnes in 2015-16 crop year (July-June) while demand is pegged at 23.66 million tonnes. The Government has taken a decision to create a buffer stock of 1.5 lakh tonnes of pulses through both domestic procurement and imports to improve domestic availability and stabilize prices.According to AAFC report, the production of chana and masoor dal is going to increase this year.Continuing its rising streak for the fourth straight day, chana gained another 0.23 per cent to Rs 4,370 per quintal in futures trading today as participants widened their bets, triggered by good demand in the spot market.Furthermore, restricted supplies from producing regions fuelled the uptrend. Likewise, the commodity for delivery in May contracts traded higher by a similar margin to Rs 4,439 per quintal in 10,610 lots.Analysts said besides strong demand in the spot market, restricted supplies from producing belts led an upward trend in chana prices at futures trade

✍Jeera During Thursday’s trading session, jeera futures took a smart recovery from its previous losses on short covering. Hence, jeera future prices traded and settled the day at Rs. 14635 per quintal with 1.5% gains.Some fresh export enquiries reported in the spot market ahead of festive season demand.On spot market front, prices at Unjha market in Mehsana district hovered in the range of Rs.13100-13700 per quintal. On arrivals front, the total arrivals remained unchanged at Unjha market were around 40000 bags.Stock positions at NCDEX accredited warehouses are 266 tonnes and stocks under process are 57 MT as on 16 Mar 2016.


�Cardamom Cardamom futures traded on mixed note as most active contract traded higher while next month contracts traded lower during previous trade. April futures opened lower, however traded on higher note extending its gains following good buying from exporters and upcountry buyers. Apr future made a high of Rs.728.90/kg, however, it could not sustain as it closed at Rs.723.40 per kg, up by 0.26% from its previous close. Cardamom arrivals were at 149621.4 kgs, up by 59801.2 kgs, max prices they traded were at Rs.913/kg, and average prices were Rs.520.31. Peak arrival season is almost over; however, bumper crop during previous season has resulted in relatively higher arrivals. Spices export during February was at Rs.1370.60 cr, up by 14% y/y. As on 16th Mar 2016, MCX warehouses have 36.30 MT stocks eligible for delivery.Rising for the second straight day, cardamom prices advanced by 2.33 per cent to Rs 731.50 per kg in futures trade today as traders indulged in enlarging their positions, tracking a firm trend at spot market on strong demand.Moreover, restricted supplies in the physical markets from major producing belts supported the uptrend in cardamom prices.At the Multi Commodity Exchange, cardamom for delivery in April increased by Rs 16.70, or 2.33 per cent, to Rs 731.50 per kg, in a business turnover of 435 lots.Similarly, cardamom for delivery in May edged up by Rs 9.80, or 1.35 per cent, to Rs 735 per kg in 25 lots.

�Coriander Coriander futures witnessed a recovery during Thursday’s trading hours on account of short covering from its previous losses. Hence, Coriander future prices settled the day on a thin range at Rs. 6662 per quintal up by 0.4%.However, spot market remained steady to down during the day, amid increase in arrivals. At Kota market, Coriander Eagle variety traded at Rs. 6800 per quintal. While Badami variety traded at Rs. 6300 per quintal. The total arrivals at Kota market reported around 764 tonnes, higher by 149 tonnes against previous day. Coriander prices are expected to trade on a positive note on continued short covering initially during the day. However, prices are expected to remain volatile later in the day amid prevailing mixed sentiments in the spot markets. Upsurge in the fresh crop arrivals may keep the prices under pressure. On the other hand, domestic demand from local masala manufactures as well export demand is likely to pick up ahead of festive season.


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