Durable Goods Orders and Commodity Market Tips

Crude Commodity Trading has Overall no major changes or developments in crude oil prices during the last few days with rising supplies and lower anticipated demand hurt prices. In fresh comments from OPEC, official from National Iranian Oil Co told the group might is unlikely to cut its production target in its meeting in the coming month. Separately, initial estimates for the weekly inventory report in the US shows probable addition in crude stocks to the tune of 3.8 million barrels to 381.5 million. We are not expecting any major support coming from product stocks, whereas refinery utilization rate after falling consistently in past week is seen stable. Over the short-term refinery run is seen declining amidst seasonal maintenance period going in the US. There are not other major developments with regards to the commodity, however weaker US economic data yesterday, concerns about probability of fake trade invoices in the recently published Chinese data and cautiousness ahead of FED meeting outcome tomorrow night (IST) is seen to be continuing to put weight on the commodity today. However, as we have been stating at several occasion the short covering at any point in time is still inevitable. Therefore, we suggest making only momentary trades on the bearish tone for the day.

Global Market View for today’s morning trade all the Asian equity markets are trading on a marginally positive note despite the US equity markets remained subdued yesterday. S&P 500 closed at 1961.63 down by 0.15percentage yesterday as investors were fazed by the falling oil prices, and the less than expected economic data from the US economy. In terms of currency, Asian currencies are trading on a mixed note with respect to the dollar. US dollar index has depreciated on Monday after the economic data while is currently trading close to 85.50. Euro and Pound have appreciated moderately with respect to the dollar hovering at 1.2710 and 1.6126 respectively.

Economic data that has been released from the Japanese markets has helped the Japanese yen to recoup some of the losses from yesterday’s session. There is no major economic data that is to be released during the Indian market hours; however, data from the US markets in the evening could have an impact on non-agro commodities during the evening session. From the US we have durable goods order which is expected to improve marginally. Later we have the Case Shiller house index, consumer confidence and the Richmond Fed manufacturing index.

Natural gas Commodity has no major developments as per the NG commodity is concerned with bias continuing on the negative side. Amidst fresh nature related cues, we saw moderate changes in the US weather wherein modestly cooler temperature in Far East and some parts of western US are seen taken over by warmer to normalized temperature for the coming 1-2 weeks. We held a range view in the commodity yesterday on expectations that cool breeze was building in the aforementioned region though the same reverted.

Commodity Market Tips

Sell Gold Mcx Dec below 27300 SL 27400 Tgt 27050

Buy Copper Mcx Nov above 414 SL 411 Tgt 418