Mcx Crude commodity trading market during the past few sessions, oil has been quite volatile with similar movement witnessed yesterday wherein at one point of time yesterday, it was lower by over 1percentage though managed good recovery in latter half to settle at $90.35 per barrel. In intraday trading, crude oil would be a highly cynical to trade as on one side the commodity continue to take negative cues pout of broader easing in global oil supplies though moderately better expectations over weekly inventory report from the US and oversold nature helps it to stay ranged. Prices rose yesterday also in-line with cues that a refinery in Canada with capacity to process 298,800 barrels a day of oil and exports over half of its refined products to the US Northeast would stay shut in short-term for repairs. This drove a strong performance in gasoline yesterday while the WTI followed suit. In other major important clues for the commodity, the STEO report from the US EIA would be released today evening (IST). Its expectations over WTI and Brent price and with demand-supply forecasts would be watched wherein feel broad bias might continue to support weakness for oil. Recommend selling oil for the day for small targets today.
Global Market View: We saw a flip in most of the Assets yesterday. The USD index plunged a tad to currently trading at 86, the shared currency euro rebounded, pound sterling and the Japanese Yen also appreciated a tad. The US market posted a slight negative close on Monday while the Asian markets are trading mixed this morning. From the weekly report we have understood that this might be a very sluggish week as only a few major economic data are expected. Talking off commodities, we saw gold and silver rebounded a tad on Monday while they are seen trading steady this morning. Oil and base metals too have rebounded smartly on Monday and all are trading stable this morning.
Economic data: We have India’s HSBC India services PMI, Germany and UK Industrial production and no major data from the US. From the expected economic data today and no major developments globally which might keep most of the assets in a very lull phase today
After past two weeks of stable to moderately bullish performance in the commodity, once again we saw huge sell-off in the commodity as on one side warmer temperatures are forecasted in much of the US, though separate predictions added coming back of some cooler temperatures in much of Western and North-Central region which is seen keeping the overall climate normal while hurting demand for the commodity. As per Bloomberg news, WSI Corprecently said temperatures would be mostly normal or higher than usual in the lower 48 states from Oct. 11 through Oct. 15. We hold moderate selling bias in intraday session today Natural gas prices recorded huge fall on Monday with the commodity sliding over 3percentage at the NYMEX. NYMEX NG active November contract fell 3.5percentage to $3.89 per MMBTU whereas in MCX contract too slipped 3.3percentage to Rs 241per MMBTU
Sell Gold Mcx Dec below26790 SL 26900 Tgt 26500
Sell Crude Mcx Oct below 5565 SL 5625 Tgt 5475