MCX Tips

Strong manufacturing growth in China and decline in supplies of Crude oil in US resulted in prices getting elevated on NYMEX platform. The truce between Hamas and Israel didn't affect the short term bull run in the prices. Israel and Hamas decided to halt eight days of attacks against each other on Wednesday. World second largest consumer China imported 23% less Crude from Iran.

The total imports of Crude oil from Iran were 458000 barrels per day, as per General Administration of Customs data. The benchmark Light Sweet Crude oil for January delivery tested a weekly high of $ 89.28 per barrel and settled at $ 88.28 per barrel, up 1.5%. From the lows of $ 84.53 per barrel on 7 November 2012, Crude oil has made a steady progress on the back of geopolitical tensions.

After Israel and Hamas it was Egypt where protests began between supporters and opponents of Egypt President Mohammed Morsi gave himself sweeping new powers. Supporters and opponents clashed on the streets across the country days after a cease fire were declared between Israel and Hamas militants in the Gaza Strip.

Energy Information Administration (EIA) last night reported a surprise decline in Crude Oil inventories. The weekly oil report from the Energy Information Administration revealed U.S. crude oil inventories decreased by 1.50 million barrels and gasoline stocks shed 1.50 million barrels in the week ended November 16.

MCX Tips

LME base metals were mixed and trading in tight ranges on Thursday due to lingering concerns about Greek debt and the U.S. fiscal situation. Copper showed signs of further correction after it settled down by $ 62 per tonne at $ 7743 per tonne. Indian Copper futures are likely to find resistance at Rs 441 per kg and support at Rs 434 per kg. The prices of February expiry closed at Rs 437.8 per kg.
LME Zinc ended at $ 2185 per tonne when last checked, down by $ 16 per tonne. A further increase of 3125 tonnes was noted in Zinc inventories today with total stockpiles at record high of 1200450 tonnes. MCX Zinc settled trading at Rs 110.2 per kg, up 0.23%.
Dollar was largely stronger last night before the US data after which it closed down. However till the time damage was done in metals and it induced selling pressure. Dollar closed marginally lower against the Euro at 1.295.
In the U.S., the Commerce Department reported earlier that new home sales fell by 0.3% to a seasonally adjusted 368000 units in October. There are also concerns about the need for the US Congress to reach a compromise to avoid $600 billion in tax increases and spending cuts due to start in January, a combination known as the fiscal cliff that could hurt the world's largest economy.
In Eurozone, National Institute of Statistics said that Spanish retail sales rose to a seasonally adjusted annual rate of -9.7% in October, from -11.0% in the preceding month.
Greece lenders reached an agreement this week to reduce country's debt-reduction target by EUR 40 billion to 124% of gross domestic product by 2020. But the lack of detail on how Greece will implement reforms needed to meet its new debt targets has affected investor confidence.

MCX Tips

Gold has tested the higher end of the trading band in the early part of the week, and hence now one can expect some profit taking around the same levels.

In our weekly outlook, we had mentioned that Gold February futures may face resistance around Rs 32,850-odd levels. Yesterday, the February futures made a high of Rs 32,830, and then retraced a wee bit.

In trades today, so far, Gold February has made a high of Rs 32,813. One can expect considerable resistance around Rs 32,830-odd levels, above which the next hurdle is placed at Rs 32,880. On the downside, Gold can slip to Rs 32,600-odd levels.

In today's outlook, the Gold MCX February futures may face resistance around Rs 32,830-32,850-32,880. On the downside, Gold MCX may seek support around Rs 36,650-32,630-32,600.

The corresponding key levels for Gold Mini December futures are as follows - support at Rs 32,260-32,230-32,200, while face resistance around Rs 32,450-32,485-32,515.

MCX Tips

Gold continues to edge higher on the daily charts as technical factors continue to support the up move. The near term support for Gold has now moved up to around Rs 31,700-odd levels.

Most of the momentum oscillators continue to remain in buy mode for Gold. Hence, any dip should be looked as a buying opportunity, with a stop at Rs 31,680.

The weekly charts, indicate an upside target of Rs 32,500 for the Gold.

For today, the Gold MCX December futures may face resistance around Rs 31,865-31,880-31,900. On the downside, Gold MCX may seek support around Rs 31,760-31,745-31,730.

The corresponding key levels for Gold Mini December futures are as follows - support at Rs 31,770-31,755-31,740, while face resistance around Rs 31,875-31,890-31,910.

MCX UPDATES

MCX Crude oil futures are trading in green today, witnessing some fresh buying but a cautious undertone in global prices kept the gains limited. Bulk of the rise was due to the weakness in the Indian rupee for the MCX futures. The stocks fell in Asia and Europe and the US dollar also maintained a firm tone. WTI Crude oil futures are quoting at $92.30, down 8 cents per barrel on the day.

Asian shares fell today, with Japan's stocks slipping nearly 2% to a two-month low, and the safe-haven dollar firmed on concerns that the corporate results season will reveal weaker earnings. The US dollar consolidated under 1.2900 levels against the Euro today; rising for a third straight sessions amid a continued sell off in the world markets following worries over global economic outlook.

The dollar was also aided by fresh worries about Spanish economy. The Eurozone debt struggle continues despite the formal launch of the new bailout facility - the ESM yesterday. The Bank of Spain Chief Economist Malo de Molina stated today that Spanish debt adjustment is proving slow and the country faces risks. He also noted that Spainish government growth forecast is optimistic.

European shares fell for the third day running today, while the euro and Spanish and Italian bonds came under fresh pressure. The International Monetary Fund said in its semi-annual outlook yesterday the euro area's debt crisis was the main threat and the risks to global financial stability had risen in the last six months, leaving confidence very fragile.

The WTI Crude futures had gained yesterday night, recording a massive rise of more than three dollars as escalating tensions between Syria and Turkey triggered worries that about 400000 barrels a day of oil which is shipped to Turkey from Iraq's northern Kurdistan region.

WTI futures are down from highs near $93 and there are signs that a weak open on the Wall Street could hurt the commodity. The MCX futures stayed positive though, hitting highs above Rs 4900 per barrel as the Indian Rupee dropped nearly 50 paise against the US dollar. The local stocks dropped and Rupee was hammered as global rating agency S&P remarked that India still faces a one-in-three chance of a credit rating downgrade within the next 24 months. MCX Crude is at Rs 4903, up Rs 13 per barrel on the day with 1.80% increase in the open interest.

Helping You Trade in MCX

It is a well-known fact that MCX is one of the leading commodity exchanges of India. Recently, it was declared as the 5^th prime Commodity Exchange of the world. This declaration was made in terms of the future contracts that were traded during the span ranging between January to June 2011. Commodities tend to form an indispensable part of human life. For leading comfortable life, we all are highly dependent on commodities that are an integral part of daily life. Someone truly said, “Trade what you see, Not what you think”. This, indubitably, goes well with the present experimental and fast paced world. People, today, are seeking investment that is safe that too with assured return. This, often, leads to the perplexing situation. Do not worry if you are pondering where and when to invest. Read on to find out about a few trading MCX Tips incorporating which you can make the right decision.

Trade in MCX Bullion

As far as trading in Bullion is considered, it usually comprises of silver and gold. In addition to this, palladium and platinum are others metals traded. Enlisted are a few points you should consider while trading in Bullion:

• Make sure that you analyse every aspect technically before speculating future price.  Analysing, here, includes market trends, economic cycle or chart patterns.
• Carefully analyse macroeconomic situation that involves around global economic indicators akin to GDP growth rates,   inflation and interest rates along with energy and productivity rates.
• Often known as the metal for poor man, investment in silver brings guaranteed returns. It is suggested not to buy the metal at the spot price.  So, keep yourself abreast about the silver market so that you can invest safe.
• As far as the silver market is considered, it much smaller in terms of value as compared to the gold market. Therefore, make sure that you study the supply vs demand before making any decision.

Trade in Base Metal

Crucial for the global economic growth are the Base Metals.  Some industrial metals such as lead and copper are known for centuries whereas nickel and aluminium have been discovered only 250 years back.  A few tips that you should consider before trading in Base Metal:

• Stay updated by reading and watching news and analyse the factors that affects prices.
• The more you will get involved in the market, the better for you. This would help you learn bargaining skills and intuition to make the right decision.
• Prior investing metals, know your metals. You can do this studying comprehensive material profile and other documents.