Commodity Research Report Ways2Capital18 Dec 2018
Added: (Tue Dec 18 2018)
Pressbox (Press Release) -
BULLION
Gold prices steadied on Friday after slipping to a week low in the previous session supported by the uncertainty around the Federal Reserves next years policy outlook while the dollar strengthened on expectations of a rate hike next week.The dollar firmed against major counterparts as investor focus shifted to an expected U.S. interest rate hike next week although gains are likely to be capped on greater uncertainty about next years policy outlook.
ENERGY
Oil on early Friday extended previous session gains after a news report said that Saudi Arabia plans to cut shipments to US refiners to avoid an expansion of US stockpiles. Oil prices had already been moving up as traders pored over data showing a rise in monthly OPEC output as well as a recent report of a weekly decline in U.S.
The Energy Information Administration released its report on US natural gas storage showing a deficit of 59 billion cubic feet in the week ending November 23 compared to a decline of 134 billion in the previous reading while analysts expected a 76 billion decline.
Base Metals
Base metals on LME turned lower on Friday morning after the China reported industrial output and retail sales growth for the month of November that missed expectations according to data from the National Bureau of Statistics as the world second largest economy started to show signs of slowing amid a bitter trade dispute with the US.
SPICES
Trend remains weak for Jeer as cooler weather in North-West India midst prospects of rains in some areas are keeping sentiments down as demand too has slowed down a bit. Reports of steps taken to improve water supply to the fields for Jeer kept pressure on prices.
Turmeric traded sideways with no strong fundamental news but prices did find support after the recent dips. Lower rains in growing areas amidst apprehensions of falling yields could support prices for Turmeric.
OILSEEDS
There was no let up in falling market sentiments for Mentha oil as firm Rupee amidst low demand kept pressure on prices. Traders anticipate the winter season demand to gradually start rising. Overall sentiments are likely to recover during the winter season.
Soya oil ended the day on subdued note as prices found difficulty in breaking above strong resistance. Slight improvement in Rupee over USD also eased the upside.
GUAR COMPLEX
Prices stabilized at these lower levels for Guar even as no strong recovery was noted. A bounce back in Crude oil prices amidst reports of pick up in export demand at these lower levels could provide some support. Reports of lower arrivals of new crop amidst prospects of fall in sowing area are Bullish factors.
OTHERS
RM seed futures ended firm yesterday. Prices have been struggling for a higher range of late. However the upside remains capped due to light crush demand. Ongoing lean arrival season and recent news of China lifting ban on import of Indian Rapemeal shall continue supporting the market all in all.
soy bean futures closed higher on Tuesday as traders anticipated potential Chinese purchases of U.S. agricultural products and shrugged off a bearish monthly global soy inventories report from the U.S. Department of Agriculture.
Last week, GBPINR Dec Futures started the week on positive note and after that it witnessed sideways movement for the entire week. It made a high of 91.3900 during the week and closed at 90.7400 with the marginal gain of 0.19 per cent on weekly basis. Technically it consolidating below the downward trend line with the negative bias and for this week, we can expect downside movement in it.
For this week, traders can adopt selling from the support level breakout strategy in it and below the level of 90.1900 it can test the level of 89.6125 during the week. Trades can make sell position in it by maintaining a Stop Loss of 90.5525
Last week, EURINR Dec Futures started the week on positive note but till the end of the week, most of its earlier gains were erased and it closed at 81.5475 with the overall gain of almost 1per cent on weekly basis. Technically it consolidating near to upward trend line breakout on weekly chart with the negative RSI and for this week, we can expect downside movement in it.
For this week, traders can adopt selling from the trend line level breakout strategy in it and below the level of 81.3000 it can test the level of 80.7125 during the week. Trades can make sell position in it by maintaining a Stop Loss of 81.7125
Last week Chana started a week on positive note but found enough resistance near the level of 4700 and made top formation on its daily chart. Last week Chana made a high of 4683 and closed at the level of 4594 with overall marginal loss of 0.24% on weekly basis. The primary trend of Chana is neagative and it is sustaining below its resistance level of 4700. For this week if it is break the level of 4550 on lower side then it can test the level of 4420. One can make sell position in it with SL of 4605.
DHANIYA
From last couple of trading weeks Dhaniya is trading with sideways movement and trading in range between 6800 – 6550 and we seen that 6700 level reacted as a strong resistance zone in Dhaniya. Last week Dhaniya made a low of 6537 and closed at the level of 6676 with overall marginal gain of 2.11% on weekly basis. Dhaniya recently broken its support trend line and sustaining below it indicating negative trend in it. For this week if it is break the level of 6580 on lower side then it can test the level of 6460. One can make sell position in it with SL of 6635.
SILVER
From last couple of trading days Silver is trading with negative sentiment and formed doji candlestick pattern on higher level indicating correction movement in it. Last week Silver made a low of 37700 and closed at 38054 with overall marginal gain of 0.22% on weekly basis. On its 4 hourly chart Silver broken its support trend line and sustaining below it indicating negative trend in it for next week. For this week, if it breaks the level of 37900 on the lower side then it can test the level of 37400 during the week. One can make sell position in it by maintaining a SL at 38052
LEAD
Last week Lead made a low of 139.05 and closed at the level of 143.30 with overall marginal loss of 1.34% on weekly basis. Lead is continuously trading near the support level of 140 and we can expect negative trend in it. Recently Lead broken its support level of 140 and sustaining below it indicating negative trend in it. For this week if it is break the level of 138 on lower side then it can test the level of 135.10. One can make sell position in it with SL of 139.15.
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