Crude Oil May Volatile for German WPI & US PPI

Crude oil prices trade in a small range on Thursday with the day’s movement staying under a Dollar between $98.20 on the higher side and $97.30 per barrel on the lower side. By the end of trade though, crude oil was little changed and stayed near the $97.50 per barrel mark for the January expiry contract at the NYMEX. In India though, crude for most active December contract gained around a percent and finished at Rs 6079 per barrel taking the positive cues out of Rupee which depreciated around 1% against the US Dollar.

With lack of any major cues on the commodity, crude oil prices took mixed cues out of the US economy wherein the retail sales data stood better than expected though the weekly jobless claims rose sharper than expected keeping the traders view on the commodity on a cautious side. US monthly Retail sales advanced 0.7%in November, marking its best increase since June though also drove the case that the US Fed might begin cutting stimulus early. Backed by positive economic cues lately from the US, markets are expecting that the US Fed could start trimming down stimulus from this month itself. As per a economists survey done by Bloomberg last week, nearly 34% expect Fed top start tapering this month.

In other oil markets cues globally, Oil Movements in a report yesterday said OPEC will boost sailings by 380,000 barrels a day or 1.6% higher to 24.14 million in the four weeks to Dec 28. Higher increase in outflows from the region is backed by rise consumption in the western region due to winter. Though this has not played any major impact on oil prices yesterday and we don’t expect any great move today either.

The major mover for global markets is the Fed and speculation over tapering wherein this has also disturbed the market momentum lately. We suggest our investors to trade only in intraday and stay cautious. The US market posted a negative close while Asians this morning have just turned positive. We are certainly going to see another tough day today. Finally coming to the economic data we have the key German WPI and the US PPI number. We believe these data may certainly bring beckon high volatility.

Coming to crude oil, it has mostly stayed stable yesterday and today also we suggest a cautious trade. We recommended buying crude oil in Indian market led by Rupee’s depreciation though have ranged outlook for the NYMEX.

COMMODITY INTRADAY TRADING TIPS

SELL GOLD MCX FEB ON RISE NEAR 29280 SL 29340 TGT 29000

SELL SILVER MCX FEB ON RISE NEAR 44700 SL 45000 TGT 43500

TODAY COMMODITY MARKET ECONOMIC EVENTS:

Visit profitkrishna.com to know more about Stock Market Tips and Best Stock Tips