Business Inventories and Commodity Tips

Gold Mcx Commodity is trading at $1307 and we believe overall bearish trend which has been seen for the past several months is in progress and we recommend selling from higher levels. We had an idea about $1355 as resistance levels for Comex Gold though markets made a high of $1345 last week and then declined so possibly the bearish trend is again confirmed. Locally too, we are shifting our strategy to sell whereas into the different Gold contracts, we continue to maintain our stance that Contango between MCX Aug-Oct Gold may further narrow after the FM refrained from cutting Import duty in Budget. So traders can sellAug-Buy Oct on pullbacks for short-term. Also a same strategy can be followed between MCX/ACE Gold wherein MCX would remain a sell though ACE Gold Hedge a buy in very short-term Global Market Analysis: Our view on Bullion went wrong last day. We were unable to judge the positive development over EU-Portugal banks, Israel’s progress whereas the US stocks rose to another record. Comex gold crashed about $40 from day’s high. Meanwhile, euro-zone IP number coming in-line with estimates also pulled markets lower. Asian markets are trading positive this morning; the USD index is trading a bit down near 80.20.From the economic data front today, we have the Zew survey from the GE, EU and from the US we have empire manufacturing index and retail sales .

Silver Commodity we had a similar outlook in silver commodity as with gold yesterday wherein we maintained moderate buying in the commodity. With our bias in base metals too standing mostly positive, we also advised traders to look for selling the Gold/Silver Ratio for small profits and hold for a day or two. Nevertheless, our view there too went against us as silver underperformed gold marginally and probably traders might be sitting with some loss. As with the fresh view now completely seen on the different side, we advice those holding Gold/Silver Ratio sell to exit with loss while in intraday we recommend selling silver on pullbacks both India and international markets. Traders note that key event today for Bullion would be Fed Chair, Janet Yellen’s testimony before the Senate Banking Committee. Her comments over interest rate, economy and inflation may infuse high volatility in broader markets including Bullion tonight.

 Commodity Tips

SELL MENTHA OIL MCX JUL BELOW 700 SL 710 TGT 690-681

SELL SILVER MCX SEP BELOW 44980 SL 45200 TGT 44600-44300

Today Economic Data Indicators: