Commodity research report ways2capital 04 april 2016

Page 1


✍ MCX DAILY LEVELS DAILY

EXPIRY DATE

R4

R3

R2

R1

PP

S1

S2

S3

S4

ALUMINIUM

29 APR 2016

106.75

105.20

103.65

103

102.10

101.45

100.55

99

97.45

COPPER

29 APR 2016

339.65

333.15

326.65

322.60

320.15

316.10

313.65

307.15

300.65

CRUDE OIL

19 APR 2016

2813

2706

2599

2531

2492

2424

2385

2278

2171

GOLD

05 APR 2016

30222

29663

29104

28785

28545

28226

27986

27427

26868

LEAD

29 APR 2016

122.65

120.35

118.05

117.15

115.75

114.90

113.45

111.15

108.85

NATURAL GAS

26 APR 2016

141.75

138

134.15

131.95

130.35

128.15

126.55

122.75

119

NICKEL

29 APR 2016

603.70

589.10

574.50

565.20

559.90

550.50

545.30

530.70

516.10

SILVER

05 MAY 2016

40350

38921

37492

36707

36063

35278

34634

33205

31776

ZINC

29 APR 2016

134.50

130.40

126.35

124.85

122.30

120.80

118.30

114.20

110.15

✍ MCX WEEKLY LEVELS WEEKLY

EXPIRY

R4

R3

R2

R1

PP

S1

S2

S3

S4

ALUMINIUM

29 APR 2016

112.65

108.90

105.15

103.75

101.40

100

97.65

93.90

90.15

COPPER

29 APR 2016

372

355.80

339.60

329.10

323.40

312.90

307.20

291

274.80

CRUDE OIL

19 APR 2016

3253

3014

2775

2619

2536

2380

2297

2058

1819

GOLD

05 APR 2016

30788

30059

29330

28898

28601

28169

27872

27143

26414

LEAD

29 APR 2016

133.80

127.95

122.10

119.20

116.25

113.35

110.40

104.55

98.70

NATURAL GAS

26 APR 2016

161.10

150.50

139.90

134.80

129.30

124.20

118.70

108.10

97.50

NICKEL

29 APR 2016

. 674.70

638.80

602.90

579.40

567

543.50

531.10

495.20

459.30

SILVER

05 MAY 2016

40526

39044

37562

36742

36080

35260

34598

33116

31634

ZINC

29 APR 2016

140.50

134.15

127.90

125.60

121.60

119.30

115.30

109

102.65

Monday, 04 April 2016


WEEKLY MCX CALL BUY ZINC APR ABOVE 124 TGT 126 SL 121.90

PREVIOUS WEEK CALL BUY GOLD APR ABOVE 28525 TGT 28832 SL 28194 - TGT ACHEIVED

✍ FOREX DAILY LEVELS DAILY

EXPIRY DATE

R4

R3

R2

R1

PP

S1

S2

S3

S4

USDINR

27 APR 2016

67.20

66.95

66.75

66.60

66.55

66.40

66.30

66.10

65.85

EURINR

27 APR 2016

77.05

76.55

76.10

75.90

75.60

75.40

75.15

74.65

74.15

GBPINR

27 APR 2016

97.60

97

96.35

96.10

95.70

95.50

95.10

94.45

93.85

JPYINR

27 APR 2016

60.10

59.80

59.55

59.40

59.25

59.10

58.95

58.65

58.35

✍ FOREX WEEKLY LEVELS DAILY

EXPIRY DATE

R4

R3

R2

R1

PP

S1

S2

S3

S4

USDINR

27 APR 2016

69.6 5

68.70

67.75

67.10

66.75

66.15

65.80

64.85

63.90

EURINR

27 APR 2016

78.3 5

77.40

76.40

76.05

75.45

75.10

74.45

73.50

72.50

GBPINR

27 APR 2016

99.6 0

98.30

97

96.45

95.70

95.10

94.40

93.10

91.75

JPYINR

27 APR 2016

61.2 5

60.55

59.90

59.55

59.20

58.90

58.50

57.85

57.15

WEEKLY FOREX CALL SELL JPYINR APR BELOW 59.30 TGT 58.70 SL 60.10 BUY USDINR APR ABOVE67 TGT 67.60 SL 66.40

PREVIOUS WEEK CALL BUY GBPINR APR ABOVE 95.70 TGT 96.70 SL 94.90 - NOT EXECUTRED.


✍NCDEX DAILY LEVELS DAILY

EXPIRY DATE

R4

R3

R2

R1

PP

S1

S2

S3

S4

SYOREFIDR

20 MAY 2016

690

678

666

661

654

649

642

630

618

SYBEANIDR

20 MAY 2016

4502

4381

4260

4214

4139

4093

4018

3897

3776

RMSEED

20 MAY 2016

4435

4371

4307

4274

4243

4210

4179

4115

4051

JEERAUNJHA

20 MAY 2016

16445

16225

16005

15870

15785

15650

15565

15345

15125

CHANA

20 MAY 2016

5029

4902

4775

4729

4648

4602

4521

4394

4267

✍NCDEX WEEKLY LEVELS WEEKLY

EXPIRY DATE

R4

R3

R2

R1

PP

S1

S2

S3

S4

SYOREFIDR

20 MAY 2016

714

693

672

664

651

643

630

609

588

SYBEANIDR

20 MAY 2016

4638

4466

4294

4231

4122

4059

3950

3778

3606

RMSEED

20 MAY 2016

4707

4541

4375

4308

4209

4142

4043

3877

3711

JEERAUNJHA

20 MAY 2016

17740 17065

16390

16065

15715

15385

15045

14365

13690

CHANA

20 MAY 2016

5234

4826

4755

4622

4551

4418

4214

4010

4030

WEEKLY NCDEX CALL SEL REFSOYA MAY BELOW 657 TGT 650 SL 667.10 SELL TMC MAY BELOW 8130 TGT 7860 SL 8453

PREIOUS WEEEK CALL SELL DHANIYA APR BELOW 7070 TGT 6900 SL 7303 - MADE LOW OF 6950


MCX - WEEKLY NEWS LETTERS INTERNATIONAL NEWS �Bullion Precious metals fell more than 1 percent on Friday after U.S. March payrolls data beat expectations, allaying some fears about the U.S. economy and stoking speculation about the timing of likely interest rate hikes by the Federal Reserve this year.The yellow metal fell during evening trade in the domestic market on Friday as investors and speculators took a cautious approach ahead of March jobs data from the US which may dictate the timing of the US Federal Reserve’s next interest rate hike. The US economy may have added 205,000 jobs in March, down from 242,000 in February, analysts estimated. A strong payrolls report may suggest a continued recovery in the US labour market, keeping the door open for a rate hike in the next few months. At the MCX, Gold futures for April 2016 contract is trading at Rs 28,485 per 10 gram, up by 0.22 per cent after opening at Rs 28,441, against the previous closing price of Rs 28,407. It touched the intra-day low of Rs 28,473 The fundamentals of gold are changing, as is visible from the sharp rise in its price (see chart) and receding fears of a rate increase by the US Federal Reserve. Since mid-December, prices have rebounded from multi-year lows, led by huge demand, mainly from US investors. So, after three (financial) years of negative return, gold managed to end with some gain for the 12 months ended March 2016. In India, too, gold has delivered positive returns, after two years of loss. However, since February, the yellow metal has come off a bit, due to profit booking and return of risk appetite. While gold might consolidate or see some more profit booking in the near term, experts say the fundamentals of gold are intact. While they say 2016-17 might not be a great year for gold investors in returns, they also advise that investors use the corrections to accumulate the precious metal, adding that at every fall, buyers are coming, thereby supporting the price. In mid-December, when international prices hit a multi-year low of $1,051 an ounce and the US Federal Reserve ended uncertainty over rate increases, sudden demand emerged, led by US-based exchange-traded fund (ETF) investors and Indian importers. And, prices took a sharp U-turn.In the March '16 quarter, while demand for gold from major consumers like India was subdued, US investors were heavy buyers. Compared to global demand for physical gold of 186.6 tonnes and ETFs' purchase of 25.2 tonnes in the March '15 quarter, demand in the recently concluded quarter from the world's largest gold ETF, the USbased SPDR, alone was 178 tonnes. This has taken its total holding to 820 tonnes, a three-year high. The previous five quarters ending December 2015 had seen a combined gold investment demand of only 87 tonnes in the US. Now, with accommodative liquidity measures by the European Central Bank and Japan, coupled with the US Fed moderating its stance, this has led to the dollar's fall and return of risk appetite, leading to profit booking in gold. Silver prices rose 0.27% to Rs 36,892 per kg in futures trade largely in tune with a firm trend in global market. At the Multi Commodity Exchange, silver for delivery in far-month July traded higher by Rs 99, or 0.27%, to Rs 36,892 per kg in a business turnover of four lots. Also, the white metal for delivery in May rose by Rs 76, or 0.21% to Rs 36,405 per kg in 307 lots. In the international market, silver gained 0.03% to $15.23 an ounce in Singapore today. Market analysts said a firming trend in the global market, mainly influenced silver futures here.Holdings of the largest silverbacked exchange-traded-fund (ETF), New York's iShares Silver Trust SLV, stood at 10344.35 tonnes, remain unchanged from previous business day.


✍ Energy Crude oil prices tumbled about 4 percent on Friday, after a Saudi prince reportedly said the kingdom will not freeze output without Iran and other major producers doing so, and data showed the global crude glut was likely to grow. Russia's oil production rose 0.3 percent to 10.91 million barrels per day in March, its highest level in nearly 30 years, raising questions over Moscow's commitment to freeze output ahead of a producers' meeting in Doha later in April.Crude oil futures plunged by over 4 per cent in the domestic market on Friday tracking a bearish trend overseas as investors and speculators shunned the energy commodity as Saudi Arabia, the world’s biggest crude exporter, shied away from a commitment to freeze output, exacerbating concerns over a growing global supply glut. Saudi Arabia’s deputy crown prince Mohammed bin Salman said that the kingdom will only freeze output if Iran and others follow suit. Salman added that if any country bolsters output, the Saudi kingdom will bolster crude sales. Iran which recently returned to the fold after a lift-off of international sanctions is aiming to boost production to pre sanction levels. Saudi Arabia’s u-turn signals increased uncertainty over the completion of a potential accord between major oil producers to cap output at a meet in Doha on April 17, leaving the risk of the market remaining oversupplied for quite some time. Meanwhile, the number of rigs drilling for oil in the US fell by 10 to 362 last week, signaling a continued drop in US production. Traders cast aside mostly positive US economic data as March payrolls gains topped estimates and manufacturing expanded for the first time in seven months, signaling an upbeat demand outlook for the fuel in the world’s biggest economy. Non-farm payrolls in the US climbed by 215,000 in March, compared to a revised 245,000 gain in February, topping analysts’ estimates for a 205,000 gain while wages picked up, a sign that the labour market recovery in the world’s biggest oil consumer remains on a strong footing in the face of a global slowdown. Natural Gas ended in the red in the domestic and overseas market on Friday as investors and speculators cut positions in the energy commodity on worries that the market remains oversupplied. At 2.468 trillion cubic feet in the week ended March 25, 2016, total gas storage levels in the US remain nearly 52 per cent above average for this time of year as a moderate winter suppressed demand for the heating fuel while rising US production also bolstered supplies. At the MCX, Natural Gas futures for April 2016 contract closed at Rs 129.7 per mmBtu, down by 0.15 per cent, after opening at Rs 130.2, against the previous closing price of Rs 129.9. It touched an intra- day low of Rs 128.8.

✍ Base Metals Amid muted demand in the domestic spot markets, copper prices fell 0.66% to Rs 324.40 per kg in futures trade today as speculators cut down their positions. However, a firm trend in the base metals pack at the London Metal Exchange (LME), capped the losses At the Multi Commodity Exchange, copper for delivery in April eased by Rs 1.10, or 0.66%, to Rs 324.40 per kg, in a business turnover of 1,914 lots. On similar lines, the metal for delivery in far-month June was trading down by Rs 2.10, or 0.63%, to Rs 329 per kg in 50 lots. Marketmen attributed the fall in copper prices at futures trade to a low demand at the domestic markets from consuming industries but metal's strength at the LME after the US Federal Reserve Chair Janet Yellen signalled that a rate hike was not likely to come before June, restricted the losses.Globally, copper used in pipes and wiring retreated 0.8% to $4,930 per tonne for delivery in three months at the LME.Industrial metals hit its highest in nearly three weeks on Friday after data showed China's factory sector grew for the first time in nine months, but metals faltered after U.S. jobs data raised the prospect of further interest rates increases. Japanese aluminium buyers have agreed to pay producers a premium of $115-$117 per tonne for metal to be


shipped over April-June, up about 5-6 percent from the prior quarter, on lower local inventories, five sources directly involved in the talks said.Copper's price rally has come to an abrupt halt and further losses are likely as financial investors get to grips with what the physical market already knows, that Chinese demand is subdued and expected to remain so. Amid pick-up in demand from alloy-makers at domestic spot markets and a firming trend in metal overseas, nickel prices recovered 0.15% to Rs 586.40 per kg in futures trade today as speculators raised their bets. At the Multi Commodity Exchange, nickel for delivery in April moved up 90 paise, or 0.15%, to Rs 586.40 per kg In a business turnover of 57 lots. The metal for delivery in current month rose by 60 paise, or 0.14% to trade at Rs 577.20 per kg in 209 lots. Analysts attributed the rise in nickel prices in futures trade to fresh buying by participants due to pick-up in demand from alloy-makers at the spot market and a firming trend in in metal at the London Metal Exchange(LME). Zinc futures shed 0.38% to Rs 118.10 per kg today as speculators reduced positions amid weak global trend and ending monthly settlement. At the Multi Commodity Exchange, zinc prices for delivery in current month declined 45 paise, or 0.38% to Rs 118.10 per kg, in a business turnover of 269 lots Likewise, the metal for delivery in April fell by a similar margin to trade at Rs 118.55 per kg in 166 lots. Analysts said apart from slackened domestic demand at the spot market, a weak trend in base metals at the London Metal Exchange led to a fall in zinc futures prices. Squaring-up of positions in view of ending monthly settlement weighed on prices, they said.

� NCDEX - WEEKLY NEWS LETTERS Agricultural growth can touch 6 per cent in 2016-17 if the country receives normal monsoon rains this year, a member of the government's premier think-tank. After two back-to-back drought years, we should not be surprised if we achieve 6 per cent agriculture growth in 2016-17.Monsoon rains (June to September) remained deficit in 2014-15 and 2015-16 at 12 per cent and 14 per cent, respectively. The India Meteorological Department's forecast for 2016-17 is expected in the last week of April. The closest inference we can take is from 2010-11, when agriculture growth was 8.6 per cent. This was after 2008-09 recorded 0.09 per cent agriculture growth rate, and 2009-10 when agriculture growth was 0.81 per cent. The drought in India in 2009 was the worst the country had faced in 37 years. The worst growth rate seen in the past few years was in 2002-03 when agriculture growth was a negative 6.6 per cent. We bounced back the next year in 2003-04 with 9 per cent agriculture growth. Although nearly half of India's population has its livelihood in the agricultural sector, Agriculture contributes about 14 per cent to India's economic output, despite nearly half of the country's population being involved in farm-related activities. A poor monsoon has a ripple effect on the rural economy and demand for consumer goods. Healthy growth in the agriculture is also good news for the fast moving consumer goods segment, which gets about a third of its sales from rural areas.

� Jeera Jeera prices closed lower by 0.45 per cent on Friday at the National Commodity & Derivatives Exchange Limited (NCDEX) on account of a surge in the supply from the producing regions in the midst of a decline in the export demand. At the NCDEX, jeera futures for April 2016 contract closed at Rs. 15,495 per quintal, down by 0.45 per cent, after opening at Rs. 15,635 against the previous closing price of Rs. 15,565. It touched the intraday low of Rs. 15,470.Futures started the day with a positive bias. However, jeera futures traded down during later part of the day. Spot markets resumed on Saturday after 5 days closure due to financial year ending activity. At Gondal market, the total arrivals reported around 81.4 tonnes. Prices at Gondal market were hovered in the


range of Rs.9505-15355 per quintal Stock positions at the NCDEX accredited warehouses are 1459 tonnes and 317 MT are under process as on 1 April 2016.

✍ Mustard seed Mustard seed prices closed higher by 1.03 per cent on Friday at the National Commodity & Derivatives Exchange Limited (NCDEX) as a result of the decline in the supply for the commodity in the major markets. At the NCDEX, mustard seed futures for April 2016 contract closed at Rs. 4,200 per quintal, up by 1.03 per cent, after opening at Rs. 4,167 against the previous closing price of Rs. 4,157. It touched the intra-day high of Rs. 4,231.

✍ Coriander During the early trading hours of Friday, coriander Apr contract traded with a mixed bias. Futures witnessed volatility and ended the day at Rs.7100 per quintal with 0.4% gains. On spot market front, the total arrivals reported at Kota market were 410 tonnes. At Kota market, Coriander Eagle and Badami variety prices remained unchanged at Rs. 7100, Rs.6600 per quintal respectively. Stock positions at the NCDEX accredited warehouses are 309 tonnes as on 01 Apr 2016. Turmeric futures traded in range bound with upward bias during previous trade on mixed sentiments in the market. They opened higher and traded higher for most parts of trading session on profit booking for penultimate trade’s sharp fall. April contract closed the trade at Rs.8102/quintal, witnessing marginal loss of 0.1% and May futures also closed down marginally by 0.1% while June futures closed the trade with no change from its previous close price. Arrivals (tonnes) in major spot markets: Warangal-12.7, Duggirala- 0.2, Gundlupet-19, Sangli-348. NCDEX accredited warehouses have 1748 MT of valid stock and 140 MT of stock in process as on 1 st Apr 2016.

✍ Chana Amid strong domestic demand at spot market and restricted supplies from producing regions, chana prices surged by 1.91% to Rs 4,526 per quintal in futures trade on Monday as participants widened their bets.Further, reports of damage to its crop due to recent nonseasonal rains in some growing states also supported chana prices uptrend.At the National Commodity and Derivatives Exchange, chana for delivery in May jumped Rs 85, or 1.91%, to Rs 4,526 per quintal, with an open interest of 22,230 lots.On similar lines, the commodity for delivery in April was quoting higher by Rs 73, or 1.67%, to Rs 4,457 per quintal in 28,200 lots.Besides strong demand in the spot market, restricted supplies from producing belts pushed up chana prices at the futures trade.


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