Crude oil Commodity Intraday trading as per the latest developments, Asian equity markets are trading weaker post the mixed to weaker Chinese lending data which surged more than 80percentage on a Mom comparison however still stood marginally lower than expectations. Already we have seen Chinese PPI and CPI number yesterday wherein both readings disappointed heavily and also one of the major reasons behind pressure on industrial commodities lately including oil.
Looking at the oil prices, yesterday we saw US oil jumping smartly from lows which was accompanied with better volumes which increase by near 27percentage at NYMEX however OI figures are unavailable to us right now. While we check the same numbers for MCX crude, data suggests Vol increased by 13percentage though OI fell by a similar rate and thus depicting towards a probably short-covering post the huge fall in prices in last couple of days. With Brent oil continuing to trade on a weaker note, economic data from China and EU remaining subdued, we feel broad pressure on oil prices would continue.
Global Market View: We have been seeing an incredible strength in the Dollar Index, if it ends up this week (which in all probability it will) this would be its9th consecutive up week to trade higher. The USD at present is trading at 84.35; Euro tumbled to $1.2918,Japanese yen the worst hit at 107.40, pound sterling managing at $1.6234.Moving onto commodities straight, we saw carnage in the market. The entire assets under commodities declined and looks like the same scenario may continue today.
Economic data: China released its money supply number which has declined a tad especially the M1 and M2money. This indicates poor circulation of funds in the economy, prompting soon a stimulus package.
Economic data today:
Japan: Industrial production
Germany: Wholesale price index
Euro-zone: Industrial production and the employment data
India: CPI, likely to slow down a bit and the IIP number.
US: retail sales, import price index and the business inventories.
Natural gas commodity intraday trading yesterday amongst major data, the EIA data showed N for stocks for week ended Sept 5 increased higher than expected by 92 BCF as against last week’s and expected reading. Also inventories continue to increase higher than last five year average data wherein 5 Yr avg for this time of the year stands at just 60 BCF further inflicting prices. We re-iterate our stand that the commodity continues in a bearish phase owing to the fact that higher production in the US and lower demand pushes it lower. Traders note that Rupee might narrow down the short-side potential for the commodity.
Commodity Intraday Trading Tips
Sell Crude oil mcx Sep below 5680 sl 5715 Tgt 5570
Sell natural gas mcx Sep below 237 SL 240 Tgt 232