Continuing Claims and Commodity Trading Tips

Crude oil commodity trading  held a cautious approach yesterday wherein we advised traders to look for only momentary trades as on one side largely positive equities, cues from PBOC and OPEC supply cut comments were seen adding fresh increase in the commodity though we were expecting some weakness to be held due to negative expectations over inventory data.

As per the commodity stocks report from the DoE, crude inventories gained 3.67 million barrels against markets forecast of a fall in the range of 1.5 million, though we were anticipating as weaker reading. If we look into products gasoline stocks fell at a decent rate though could not provide any major support to prices which closed weaker by 0.5percentageyesterday. Gasoline inventories fell by 1.6 million barrels while distillate stock increased by 279,000 barrels.

As of early Asian trade, we are looking at a weaker WTI and Brent oil prices where both of them down by over 0.5percentage. For the day, weaker expectations over US housing and manufacturing related data, strong gains in US Dollar and dragging effect of the subdued US stocks report would keep the commodity under pressure wherein we recommend selling the same at the NYMEX and MCX commodity markets for small targets.

Global Market View: Dollar is turning out to be the emperor of the currency markets this year with the Index moving to multi-year highs to 84.65 marks after taking positive cues from the FOMC meeting. Euro fell whereas Japanese Yen too slid to multi-year lows. Though the US FOMC meeting outcome looked a bit hawkish at first glance, the FED continued to claim its commitment towards lower levels of interest rates for the foreseeable future and re-iterated its view over labor market wherein the same still need very good improvement over wages growth front. Asian markets are trading on a mixed to positive note following moderate positivity in US equities which closed higher.

Economic data: EU Targeted LTRO Update, US Building Permits, Housing Starts, Philly Fed Manufacturing Index and Weekly Jobless claims data

Natural gas commodity trading market prices continued to track positive short-term developments over warmer weather forecasts in the US West. We held a positive bias yesterday though today have a cautious view as the commodity may see good volatility due stocks report. Early estimates stand for a addition of around 90 BCF, similar a last week though we feel am modest chance for positivism can be there in inventory as US recorded good amount of cooler temperatures lately. For the day, we have a ranged view in the commodity. Still short-term view in the commodity still remains weak.

Commodity Trading Tips

Sell crude Sep mcx below 5755 SL 5810 TP 5680

Sell Silver Dec mcx below 41370 SL 41450 TP 40800