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.